Construction Defect Journal Archives

Privity Problems Continue for Additional Insureds in the Second Circuit

November 8, 2017
Samantha M. Martino – Saxe Doernberger & Vita, P.C.

On October 4, the Second Circuit held that Harleysville Insurance Company had no duty to defend or indemnify a project owner or general contractor as additional insureds under a sub-subcontractor’s commercial general liability (CGL) policy due to lack of direct contractual privity. 1

The underlying claim arose when an employee of The Kimmell Company, Inc. (Kimmell) was injured while repairing an HVAC system at a building owned by the University of Rochester Medical Center (UR). The injured employee sought damages for his injuries and fi led suit against (1) UR; (2) LeChase Construction Corp. (LeChase), the general contractor for the project; and (3) J.T. Mauro Co. Inc. (Mauro), a subcontractor hired by LeChase.

Mauro hired Kimmell as a sub-subcontractor to perform HVAC services at the project. The Mauro-Kimmel contract required Kimmel to add Mauro, UR, and LeChase as additional insureds under Kimmell’s CGL policy.

Ms. Martino may be contacted at smm@sdvlaw.com



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