Federated Dep’t Stores, Inc. v. M.J. Clark, Inc.
2007 U.S. Dist. LEXIS 51826 (N.D. Ill. July 17, 2007)
After a flood caused by a leak in the sprinkler system during remodeling at a Bloomingdale’s store in Chicago damaged the first five floors of the store, plaintiffs, Bloomingdale’s and its owner Federated, sued defendant contractor, subcontractor, and building manager for breach of contract, negligence, and indemnification.
The agreement between the contractor and owner provided the contractor agreed to indemnify the owner. It further provided that each party waived all rights against the other for any loss or damage “for which property insurance is carried or required to be carried pursuant to [the parties’] Agreement.” Specifically excepted from the waiver were the contractor’s indemnification responsibilities. During the time of the flood, the owner was covered by an “all risk” insurance policy. Among other things, the policy excluded ordinary wear and tear and errors in design or faulty workmanship. Continue reading “Federal District Court in Illinois Holds “All Risk” Insurer’s Claim Against Contractor For Breach Of Contract And Negligence Defeated By A Waiver Of Subrogation With Respect To “[Insurance] Carried Or Required To Be Carried Pursuant To This Agreement” – Rejects Insurer’s Interpretation As To Scope Of Waiver As Too Restrictive – Indemnity Claim Survives”