| Spector v Cushman & Wakefield, Inc. |
| 2011 NY Slip Op 52426(U) [34 Misc 3d 1204(A)] |
| Decided on December 16, 2011 |
| Supreme Court, New York County |
| Edmead, J. |
| Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431. |
| This opinion is uncorrected and will not be published in the printed Official Reports. |
Linda Spector and Paul
Spector, Plaintiffs,
against Cushman & Wakefield, Inc., CITIBANK, R.S. STUART, OUTDOOR INSTALLATION LLC, d/b/a SPRING SCAFFOLDING, ONE SOURCE FACILITY SERVICES INC. and GOLDEN PLOW LLC, Defendants. CITIBANK, NA, Third-Party Plaintiff, ONE SOURCE FACILITY SERVICES, INC., Third-Party Defendant. ONE SOURCE FACILITY SERVICES, INC., Second Third-Party Plaintiff, GOLDEN PLOW, LLC, Second Third-Party Defendant. |
MEMORANDUM DECISION
In this action for personal injuries, plaintiff Linda Spector (plaintiff or Spector) alleges that
she was injured on February 14, 2006 at about 8:15 In motion sequence number 011, defendant/third-party defendant/second third-party plaintiff
OneSource Facility Services, Inc. (OneSource) moves, by order to show cause, for an order
staying the trial of this action pending the outcome of its motion for summary judgment, or
alternatively, for an order adjourning the trial of this action to allow the motion to be heard and
decided on the merits. On October 12, 2011, the court stayed all proceedings related to this action
pending the hearing of the motion, and scheduled oral argument on the motion for December 20,
2011.
In motion sequence number 012, OneSource moves for an order: (1) pursuant to CPLR 3212,
for leave to make a late motion for summary judgment; (2) pursuant to CPLR 2221 (e) (2) and
(3), for leave to renew the court's decision and order dated January 22, 2010 (the prior decision);
(3) pursuant to CPLR 3025, for leave to amend its answer to assert the defenses of res
judicata and collateral estoppel; and (4) upon said leave being granted, for summary
judgment dismissing the third-party complaint and all claims and cross claims asserted against it
and for summary judgment on its second third-party complaint.
Defendant/third-party plaintiff Citibank, NA (Citibank) cross-moves, pursuant to CPLR
3212, for summary judgment on its cross claims and third-party claims for contractual
indemnification and failure to procure insurance against OneSource.
This decision only addresses motion sequence number 012 and the cross motion.
Spector alleges that she was
injured while on her way to work on the morning of February [*2]14, 2006. Citibank is the owner of the premises. OneSource was
hired to perform exterior maintenance of Citibank's premises, including snow and ice removal.
OneSource subcontracted its snow removal duties at the subject location to defendant/second
third-party defendant Golden Plow, LLC (Golden Plow).
On April 2, 2008, Citibank commenced a third-party action against OneSource, asserting the
following claims: (1) contractual indemnification; (2) common-law indemnification; (3)
contribution; and (4) breach of contract for failure to procure insurance.[FN1] Subsequently, on July 10, 2008, OneSource
brought a second third-party action against Golden Plow, also seeking: (1) contractual
indemnification; (2) common-law indemnification; (3) contribution; and (4) damages for failure
to procure insurance.[FN2]
As relevant here, Citibank, OneSource, and Golden Plow moved, inter alia, for
summary judgment dismissing the complaint and all claims asserted against them.[FN3]
On January 22, 2010, the court granted Citibank's motion, noting that there was no evidence
that Citibank had actual notice of the ice and that "[t]he evidence submitted indicates that the ice
could have formed within two hours, or even just moments, prior to the alleged accident, before
Citibank was open, and such a short period would be an insufficient amount of time for Citibank
to have remedied the situation" (Spector v Cushman & Wakefield, Inc., 2010 WL 363266
[Sup Ct, NY County 2010], revd 87 AD3d 422 [1st Dept 2011]). Additionally,
OneSource and Golden Plow were also granted summary judgment dismissing the complaint as
against them. The court wrote that "there is no evidence or allegation that either OneSource or
Golden Plow launched a force or instrument of harm' that caused the ice to form, nor has
Spector alleged that she detrimentally relied on their performance. Further, since Citibank
retained oversight in the snow removal process, as indicated in its contract with OneSource
referenced above, it cannot be held that OneSource or Golden Plow entirely displaced Citibank's
duty to maintain a safe abutting sidewalk" (id., citing Espinal v Melville Snow
Contrs., 98 NY2d 136, 140 [2002]). Thus, the court determined that the claims for
common-law and contractual indemnification and breach of contract were rendered moot as a
result of the dismissal of the complaint and dismissed the cross complaints against them
(id., n 1 and order).
The First Department subsequently reversed the grant of summary judgment to Citibank,
with one dissent, explaining that:
OneSource now argues that it has "good cause" for the delay in moving for summary
judgment on the third-party claims. According to OneSource, the instant motion could not have
been made on res judicata, collateral estoppel, and law of the case grounds until the First
Department's decision and until Citibank advised that it intended to pursue its third-party claims
against it. Alternatively, OneSource contends that the court's prior decision should be renewed
because the third-party claims became relevant after the First Department reversed the award of
summary judgment to Citibank.
Additionally, OneSource asserts that Citibank is barred from asserting common-law and
contractual indemnification and breach of contract claims based on res judicata and
collateral estoppel, since that portion of the court's prior decision was never appealed by any
party. OneSource further contends, with respect to Citibank's common-law indemnification,
contractual indemnification, and contribution claims, that it is the law of the case that plaintiff's
accident did not arise out of OneSource's work at the subject site and that Citibank cannot show
its freedom from negligence. In any event, OneSource asserts that Citibank is not entitled to
contractual indemnification for two reasons: (1) the indemnification clause in its contract with
Citibank is void and unenforceable under General Obligations Law § 5-322.1; and (2) there
is no proof that Spector's accident arose out of or was caused by the execution of the work, i.e.,
the implementation of snow removal. Finally, OneSource argues that Citibank has no valid
breach of contract claim because it named Citibank as an additional insured on its commercial
general liability insurance policy.
With respect to the second third-party claims, OneSource moves for contractual
indemnification for costs, expenses, and attorneys' fees from Golden Plow. OneSource also seeks
summary judgment on its failure to procure insurance claim against Golden Plow.
In opposition to OneSource's motion, and in support of its cross motion, Citibank [FN4] argues that res judicata
and law of the case do not apply because the court dismissed all claims and cross claims
against OneSource only because Citibank was dismissed from the case as a party, and Citibank is
now a party. Citibank asserts that OneSource's motion is late as a matter of law and that there is
no basis to renew and/or reargue. According to Citibank, the court should [*4]decide the issues that were not decided in the prior decision.
OneSource breached its contract, Citibank argues, because it failed to procure the amount and
type of insurance required by its contract. Furthermore, Citibank maintains that it is entitled to
contractual indemnification from OneSource since it is clear that Spector's accident "arose out
of" its contract with OneSource. Citibank also seeks reasonable attorneys' fees from OneSource
or from OneSource's insurer for its failure to defend it in this action.
In opposing OneSource's motion, Golden Plow argues the following: (1) OneSource is barred
from asserting contractual indemnification and breach of contract claims based on res
judicata, collateral estoppel, and law of the case; (2) the indemnification provision in the
Master Subcontract Agreement is void and unenforceable under General Obligations Law §
5-322.1; (3) Golden Plow did not independently perform snow removal services, and thus,
OneSource cannot prove that it was not negligent as a matter of law; (4) indemnification is not
triggered because there is no evidence that Spector's accident was caused by a breach of its
contract or failure to act; and (5) OneSource has no valid breach of contract claim because the
declaratory judgment action brought by OneSource against Golden Plow's insurer, OneSource
Facility Servs., Inc. v Golden Plow, LLC, Index No. 115764/09, has settled, and in any
event, Golden Plow did not agree to purchase insurance for OneSource's benefit, and even if it
did breach its contract, the measure of damages is the difference in insurance premiums.
Initially, the court must
consider whether OneSource and Citibank are entitled to make a second motion for summary
judgment. "While generally successive motions for summary judgment not supported by new
factual assertions and proofs are precluded, such a motion is permitted where sufficient cause'
for making the second motion is shown" (Forte v Weiner, 214 AD2d 397, 398 [1st Dept],
lv dismissed 86 NY2d 885 [1995] [citation omitted]). The doctrine of the law of the case
[FN5] provides that, once an
issue is judicially determined, "that should be the end of the matter as far as Judges and courts of
co-ordinate jurisdiction are concerned" (Martin v City of Cohoes, 37 NY2d 162, 165,
rearg denied 37 NY2d 817 [1975]). However, "[t]he doctrine of the law of the case is not
an absolute mandate on the court,' since it may be ignored' in extraordinary circumstances'
vitiating its effectiveness as a rule fostering orderly convenience . . . The error sought to be
corrected must, however, be so plain . . . [that it] would require [the] court to grant a reargument
of a cause'" (Foley v Roche, 86 AD2d 887 [2d Dept], lv denied 56 NY2d 507
[1982] [citations omitted]; see also
National Mtge. Consultants v Elizaitis, 23 AD3d 630 [2d Dept 2005]; Welch Foods
v Wilson, 262 AD2d 949, 950 [4th Dept 1999]).
Here, OneSource and Citibank have shown "sufficient cause" for their second motions for
[*5]summary judgment as to the contractual indemnification and
breach of contract claims. In the prior decision, the court found that OneSource and Golden Plow
did not owe a duty of care to Spector. The court also stated that the contractual indemnification
and breach of contract claims [FN6] were moot as a result of the dismissal of the
complaint. Upon further review, the court finds that this statement was inaccurate. The
contractual indemnification provisions at issue do not condition indemnification based upon the
negligence of either OneSource or Golden Plow, and thus, could be triggered even in the absence
of negligence by either contractor (see Brown v Two Exch. Plaza Partners, 76 NY2d 172,
178 [1990] [where indemnification clause provided for indemnification of any claim "arising out
of, in connection with or as a consequence of the performance of the Work and/or any acts or
omission of the Subcontractor," subcontractor was required to indemnify contractor even though
there was no evidence of negligence on the subcontractor's part]). Moreover, although the
complaint was dismissed against OneSource and Golden Plow, the breach of contract claims
were not academic (see Natarus v
Corporate Prop. Invs., Inc., 13 AD3d 500, 501 [2d Dept 2004] [issue of whether
third-party defendant procured contractually-mandated insurance coverage was not academic
notwithstanding dismissal of the underlying complaint]; see also Hajdari v 437 Madison Ave.
Fee Assoc., 293 AD2d 360, 361 [1st Dept 2002]).
"The proponent of a motion for summary judgment must demonstrate that there are no
material issues of fact in dispute, and that it is entitled to judgment as a matter of law" (Dallas-Stephenson v Waisman, 39
AD3d 303, 306 [1st Dept 2007], citing Winegrad v New York Univ. Med. Ctr., 64
NY2d 851, 853 [1985]). The burden then shifts to the party opposing the motion to "present
evidentiary facts in admissible form sufficient to raise a genuine, triable issue of fact" (Mazurek v Metropolitan Museum of
Art, 27 AD3d 227, 228 [1st Dept 2006]). The court's function on a motion for summary
judgment is only to determine whether any triable issues of fact exist, not to determine the merits
of any such issues (Sheehan v Gong,
2 AD3d 166, 168 [1st Dept 2003]).
1.Contractual Indemnification
Paragraph 27 of the contract between Citibank and OneSource provides as follows:
Schedule E- Snow Removal also contains the following indemnification provision:
Although OneSource argues that only the second indemnification provision applies here, the
plain language of the first indemnification provision also requires OneSource to indemnify
Citibank for any claim for personal injury arising out of or in connection with the performance of
the contract by OneSource or any act or omission by OneSource.
OneSource argues that the indemnification provisions are void and unenforceable under the
General Obligations Law. General Obligations Law § 5-322.1 provides that:
Thus, an indemnification agreement is void and unenforceable to the extent that such
agreement contemplates full indemnification of a party for its own negligence (Itri Brick &
Concrete Corp. v Aetna Cas. & Sur. Co., 89 NY2d 786, 795, rearg denied 90 NY2d
1008 [1997]; see also Prenderville v
International Serv. Sys., Inc., 10 AD3d 334, 338 [1st Dept 2004] [snow removal
contract]). However, an indemnification clause which provides for partial indemnification to the
extent that the party to be indemnified was not negligent does not violate the General Obligations
Law (see Brooks v Judlau Contr.,
Inc., 11 NY3d 204, 210-211 [2008] [indemnification "to the fullest extent permitted by
law" contemplated partial indemnification and was permissible under the statute]). Even if the
clause does not contain the savings language "to the fullest extent permitted by law," it may
nevertheless be enforced where the party to be indemnified is found to be free of any negligence
(Brown, 76 NY2d at 179; Collins v Switzer Constr. Group, Inc., 69 AD3d 407, 408 [1st Dept
2010]). Here, the indemnification provisions in OneSource's contract do not contain the savings
language "to the fullest extent permitted by law," but may be enforceable if the jury finds that
Citibank was not negligent.
Furthermore, contrary to OneSource's assertion, there are issues of fact as to whether
indemnification is triggered in this case. Schedule E of OneSource's contract with Citibank [*7]states that "[s]idewalks, walkways and parking lots are
to be maintained free of snow and ice at all times to prevent hazard to public and
personnel" (Marris Affirm. in Support, Exh. R[emphasis added]). Spector claims that she slipped
and fell on a seven by 10 inch patch of black ice on the sidewalk abutting Citibank's property
(Plaintiff EBT, at 15, 21). Thus, it is for the jury to determine whether Spector's accident "[arose]
out of or in connection with the performance of this Agreement by [OneSource] . . . or any acts
of omission or commission of [OneSource]" or "[arose] out of, or suffered while engaged in, or
caused, in whole or in part, by the execution of [OneSource's] work" (see Trzaska v Allied Frozen Stor., Inc.,
77 AD3d 1291, 1293 [4th Dept 2010] [where plaintiff was injured while stepping off snow
pile, there were issues of fact as to whether plaintiff's accident arose out of contractor's
performance or failure to perform its duties under the contract where contractor was required to
"clear snow from all drives and parking areas" and to "keep the property clear of snow"];
Baratta v Home Depot USA, 303 AD2d 434, 435 [2d Dept 2003] [issue of fact as to
whether snow removal contractor breached its contract by failing to perform services]; cf. Kogan v North St. Community,
LLC, 81 AD3d 429, 430-431 [1st Dept 2011]).
Accordingly, the part of OneSource's motion for summary judgment which seeks dismissal
of Citibank's contractual indemnification claims is denied. The part of Citibank's cross motion
which seeks summary judgment on its contractual indemnification claims against OneSource is
also denied. Because there are questions of fact as to whether the indemnification provision will
be triggered, Citibank's request for reasonable attorneys' fees is denied without prejudice to
renewal after trial.
2.Failure to Procure Insurance
It is well established that an agreement to procure insurance is distinct from an agreement to
indemnify (see Kinney v Lisk Co., 76 NY2d 215, 218 [1990]). Where there is a breach of
an agreement to procure insurance, the breaching party is responsible for all "resulting damages,
including the liability [of the general contractor and the site owner] to [the] plaintiff"
(Kennelty v Darlind Constr., 260 AD2d 443, 445 [2d Dept 1999] [internal quotation
marks and citation omitted]).
Paragraph 17 of the contract between Citibank and OneSource states that "[t]he Contractor
will, throughout the duration of this Agreement, at its expense, carry and renew . . . (iii)
Comprehensive General Liability ("CGL") insurance in the amount of $1,000,000 combined
single limit covering both bodily injury and property damage, including but not limited to
coverage for its indemnities to the Agent under this Agreement" (Marris Affirm. in Support, Exh.
R). "The Bank, Agent and their affiliates, including Citigroup, shall be additional insureds under
the Contractor's CGL policy with respect to liability arising out of any act or omission pertaining
to the performance of this Agreement" (id.). Furthermore, the contract states that "[i]f the
Contractor's CGL policy includes a self-insured retention, the certificate of insurance shall so
indicate, including the amount thereof" (id.).
The insurance policy issued by American Home Assurance Company to OneSource for the
period June 30, 2005 through June 30, 2006 contains a general aggregate limit of $1,500,000 and
each occurrence limit of $1,500,000 (id., Exh. S). The policy contains an endorsement
which states that:
1.The coverage and/or limits of this policy, or
2.The coverage and/or limits required by said contract or agreement"
The policy also contains a self-insured retention endorsement, which states that:
Citibank has shown that OneSource was required to purchase an insurance policy with a
limit of $1,000,000 each occurrence. OneSource obtained a policy with an each occurrence limit
of $1,500,000 and aggregate limit of $1,500,000. The policy also contains a $500,000
self-insured retention. As pointed out by OneSource, the contract does not expressly prohibit
self-insured retentions. However, considering the reasonable expectations of the parties (see Federated Retail Holdings, Inc. v
Weatherly 39th St., LLC, 77 AD3d 573, 574 [1st Dept 2010]), the court finds that
OneSource breached its obligation to procure insurance naming Citibank as an additional insured
for liability "arising out of any act or omission pertaining to the performance of [the]
Agreement," with a limit of $1,000,000. The policy requires OneSource to pay out $500,000
before the policy pays any benefit. It is well settled that "self-insurance is not insurance but an
assurance — an assurance that judgments will be paid" (Guercio v Hertz Corp., 40
NY2d 680, 684 [1976]; see also Roldan
v New York Univ., 81 AD3d 625, 629 [2d Dept 2011]). Therefore, Citibank is entitled
to partial summary judgment on its failure to procure insurance claims against
OneSource.[FN7]
1.Contractual Indemnification
Paragraph 14 of the Master Subcontract Agreement between OneSource and Golden Plow
[*9]provides as follows:
Upon a search of the record (CPLR 3212 [b]), the court finds that there is no evidence that
Spector's accident was "caused by . . . [Golden Plow's] breach of [the] Agreement or acts or
failures to act by [Golden Plow]" (Marris Affirm. in Support, Exh. T). As noted previously, on
February 14, 2006, Spector allegedly slipped and fell on a seven by 10 inch patch of black ice on
the sidewalk adjacent to Citibank's property (Plaintiff EBT, at 15, 21). It is undisputed that a
major snowstorm fell on New York City starting on February 11, 2006, and continued until about
4 2.Failure to Procure Insurance
Paragraph 18 of the Master Subcontract Agreement between OneSource and Golden Plow
states that "[f]or the purpose of this Agreement, Master Subcontractor will carry the types of
insurance in at least the limits, which may be a combination of primary and excess coverage,
specified in appended Schedule 18" (Marris Affirm. in Support, Exh. T). Schedule 18 —
Master Subcontractor Insurance Requirements provides that:
In Crespo v Triad, Inc. (294 AD2d 145, 148 [1st Dept 2002]), the First Department
held that "[t]he Owners were properly granted partial summary judgment on their cross claim
against Bozell for breach of contract for failure to procure insurance where the lease between
them required each to procure insurance naming the other as an additional insured, and, in
response to the motion, Bozell failed to tender an insurance policy" (see also Chaehee Jung v Kum Gang,
Inc., 22 AD3d 441, 443 [2d Dept 2005], lv denied 7 NY3d 703 [2006]
[summary judgment on breach of contract claim for failure to procure insurance properly granted
where company failed to produce any evidence of its compliance with insurance procurement
clause]; Taylor v Gannett Co., 303 AD2d 397, 399 [2d Dept 2003] [same]).
While Golden Plow asserts that the declaratory judgment action brought by OneSource
against its insurer has settled, it appears that Golden Plow's insurer has not conceded that
OneSource is an additional insured under the policy. Indeed, a draft settlement agreement
indicates that the insurer denied any obligation to provide coverage to OneSource and/or defend
or indemnify OneSource as a result of any liability in this action (Marris Affirm. in Reply, Exh.
A). Further, OneSource has shown that Golden Plow was required to purchase an insurance
policy naming it as an additional insured pursuant to the Master Subcontract Agreement. Golden
Plow has failed to tender an insurance policy in response to OneSource's motion. Thus,
OneSource is entitled to partial summary judgment on its failure to procure insurance claim
against Golden Plow (see Crespo, 294 AD2d at 148). However, since OneSource has its
own insurance policy, its potential recovery from Golden Plow is limited to its out-of-pocket
expenses not covered by its own insurance (see Inchaustegui v 666 5th Ave. Ltd.
Partnership, 96 NY2d 111, 114 [2001]; Cucinotta v City of New York, 68 AD3d 682, 684 [1st Dept
2009]). Accordingly, it is hereby
ORDERED that that portion of the court's decision and order dated January 22, 2010 which
dismissed (1) defendant Citibank, NA's cross claims for contractual indemnification and failure
to procure insurance against defendant OneSource Facility Services, Inc. and (2) defendant
OneSource Facility Services, Inc.'s cross claims for contractual indemnification and failure to
procure insurance against defendant Golden Plow, LLC, is vacated; and it is further
ORDERED that the motion (sequence number 012) of defendant/third-party [*11]defendant/second third-party plaintiff OneSource Facility
Services, Inc. is granted to the extent of granting it summary judgment on the issue of liability on
its second third-party claim for failure to procure insurance against second third-party defendant
Golden Plow, LLC, and is otherwise denied; and it is further
ORDERED that the second third-party claim for contractual indemnification is dismissed;
and it is further
ORDERED that the cross motion of defendant/third-party plaintiff Citibank, NA for
summary judgment is granted on the issue of liability on its cross claim and third-party claim for
failure to procure insurance against defendant/third-party defendant OneSource Facility Services,
ENTER:
______________________________
Hon. Carol Robinson Edmead, J.S.C.
ORDERED that that portion of the court's decision and order dated January 22, 2010 which
dismissed (1) defendant Citibank, NA's cross claims for contractual indemnification and [*12]failure to procure insurance against defendant OneSource Facility
Services, Inc. and (2) defendant OneSource Facility Services, Inc.'s cross claims for contractual
indemnification and failure to procure insurance against defendant Golden Plow, LLC, is
vacated; and it is further
ORDERED that the motion (sequence number 012) of defendant/third-party
defendant/second third-party plaintiff OneSource Facility Services, Inc. is granted to the extent of
granting it summary judgment on the issue of liability on its second third-party claim for failure
to procure insurance against second third-party defendant Golden Plow, LLC, and is otherwise
denied; and it is further
ORDERED that the second third-party claim for contractual indemnification is dismissed;
and it is further
ORDERED that the cross motion of defendant/third-party plaintiff Citibank, NA for
summary judgment is granted on the issue of liability on its cross claim and third-party claim for
failure to procure insurance against defendant/third-party defendant OneSource Facility Services,
"Citibank failed to make a prima facie showing of entitlement to judgment as
a matter of law. The injured plaintiff allegedly slipped on a patch of black ice on the sidewalk
abutting Citibank's [*3]premises. Because Citibank did not refute
plaintiffs' contention that the dangerous condition existed, it was required to establish that it did
not cause or create the condition or have actual or constructive notice of it (see Lebron v Napa Realty Corp., 65
AD3d 436, 437, 884 NYS2d 37 [2009]). Citibank has failed to meet its burden with respect
to actual or constructive notice of the ice because it proffered no affidavit or testimony based on
personal knowledge as to when its employees last inspected the sidewalk or the sidewalk's
condition before the accident. This Court has employed similar reasoning with respect to other
summary judgment motions made under analogous facts (see De La Cruz v Lettera Sign & Elec. Co., 77 AD3d 566, 909
NYS2d 448 [2010]; Lebron at 437, 884 NYS2d 37). . . Unlike a contractor, an owner,
such as Citibank, has a statutory, nondelegable duty to maintain the sidewalk abutting its
premises (see Administrative Code of the City of New York § 7-210; Cook v Consolidated Edison Co. of NY,
Inc., 51 AD3d 447, 448, 858 NYS2d 117 [2008])"
(Spector v Cushman &
Wakefield, Inc., 87 AD3d 422, 423 [1st Dept 2011]).
A.Citibank's Claims Against OneSource
"The Contractor [OneSource] hereby agrees to indemnify, defend and hold harmless
the Bank, Agent, and their affiliates . . . from and against all claims, losses, liabilities and
expenses (including fees and disbursements of counsel) suffered or incurred by the foregoing
indemnities or any of them on account of or in connection with this Agreement and/or any injury
to persons, including but not limited to death . . . arising out of or in connection with the
performance of this Agreement by the Contractor [OneSource], or its employees, agents or
subcontractors, or any acts of omission or commission of the Contractor [OneSource], or
its employees, agents, or subcontractors, including but not limited to claims, liabilities, losses and
expenses resulting from the loss or the improper use of keys or card access devices to the
Premises given to the Contractor [OneSource], its employees, agents or subcontractors. Claims
and demands which may arise out of the sole negligence of the Agent, or any of its subsidiaries,
are not the responsibility of the Contractor [OneSource]. These [*6]conditions shall also apply to any subcontracted operations"
(Marris Affirm. in Support, Exh. R [emphasis added]).
"The Contractor [OneSource] shall indemnify and hold harmless the Owner and
Architect against any and all claims and demands for damage to the property of any person, firm
or individual or for personal injuries (including death) arising out of, or suffered while
engaged in, or caused, in whole or in part, by the execution of the work; Contractor
[OneSource] shall well and truly defend the Owner and pay all monies awarded for such damages
or injuries (including death) as may be sustained, all costs including attorneys' fees and shall
obtain a full acquittance and release in favor of the Owner and Architect"
(id. [emphasis supplied]).
"A covenant, promise, agreement or understanding in, or in connection with or
collateral to a contract or agreement relative to the construction, alteration, repair or maintenance
of a building, structure, appurtenances and appliances . . . purporting to indemnify or hold
harmless the promisee against liability for damage arising out of bodily injury to persons or
damage to property contributed to, caused by or resulting from the negligence of the promisee,
his agents or employees, or indemnitee, whether such negligence be in whole or in part, is against
public policy and is void and unenforceable . . . ."
"Section II — Who Is an Insured, 1., is amended to add:
[*8]
f.Any person or organization to whom you
become obligated to include as an additional insured under this policy, as a result of any contract
or agreement you enter into, excluding contracts or agreements for professional services, which
requires you to furnish insurance to that person or organization of the type provided by this
policy, but only with respect to liability arising out of your operations or premises owned by or
rented to you. However, the insurance provided will not exceed the lesser of:
(id.).
"Section I- COVERAGES, COVERAGE A — BODILY INJURY AND
PROPERTY DAMAGE LIABILITY, 1. — INSURING AGREEMENT, paragraph a. is
deleted in its entirety and replaced with the following:
a.We will pay on behalf of the Insured those sums in excess of the Retained Limit'
that the Insured becomes legally obligated to pay as damages because of bodily injury' or
property damage' to which this insurance applies. We will have the right but not duty to defend
any suit' seeking those damages"
(id.). The retained limit is $500,000 per occurrence or offense (id.).
B.OneSource's Claims Against Golden Plow
"Master Subcontractor [Golden Plow] agrees to defend, hold harmless and
unconditionally indemnify OneSource Management, Inc. and its affiliates, directors, officers,
employees and representatives and the OneSource customers where Master Subcontractor
[Golden Plow] is providing services and the customer's affiliates, directors, officers, employees
and representatives ["Indemnified Parties"] for and against all liabilities, costs, expenses,
including attorneys' fees and expenses of investigation, claims, judgments fines and damages
which the Indemnified Parties may at any time suffer or sustain or become liable for by reason of
any accidents, damages or injuries, including injuries resulting in death, either to persons or
property or both, of Master Subcontractor [Golden Plow] or the Indemnified Parties or to any
other parties, in any manner caused by or resulting from Master Subcontractor's [Golden
Plow's] breach of this Agreement or acts or failures to act by Master Subcontractor [Golden
Plow] or its employees or agents in the performance of this Agreement; provided, however
that such indemnification and hold harmless will not apply to claims for loss, damage, injury or
death to the extent caused by the sole negligence of OneSource"
(Marris Affirm. in Support, Exh. T [emphasis added]).
"General Liability and Excess Liability MUST be combined limited of $2,000,000,
be Blanket contractual cover, broad form property damage, personal injury liability,
products/completed [*10]operations and independent contractors.
The endorsement appearing in the
Description of Operations box on the [Certificate of Insurance] must read as follows:
OneSource Management, Inc. and its affiliates, directors, officers, employees and
representatives and the OneSource customers where Insured is providing services, as their
interests may appear, are named as Additional Insureds. All policies are primary and
non-contributory. All policies have a waiver of subrogation endorsement as to additional
insureds. This certificate supercedes any and all prior certificates issued to Holder"
(id.).
Inc., and is otherwise denied.
Dated: December 16, 2011
Motion sequence 012 is decided in accordance with the annexed Memorandum
Decision. It is hereby
Inc., and is otherwise denied.
Footnote 1:Citibank's answer to the
amended complaint also contains cross claims for indemnification and failure to procure
insurance (Citibank's Answer to Amended Complaint, Second and Third Cross Claims).
Footnote 2:OneSource's answer to the
amended complaint asserts cross claims for indemnification and breach of contract (OneSource's
Answer to Amended Complaint, Second and Third Cross Claims).
Footnote 3:On July 28, 2008, the court
granted summary judgment to defendant Cushman & Wakefield, Inc.
Footnote 4:Plaintiffs also join in Citibank's
opposition to OneSource's motion.
Footnote 5:OneSource and Golden Plow
argue that the indemnification and breach of contract claims are barred by the doctrines of res
judicata and collateral estoppel. Nonetheless, these doctrines do not apply because these
claims were not dismissed in a prior action or proceeding (see D'Arata v New York Cent.
Mut. Fire Ins. Co., 76 NY2d 659, 664 [1990]; Gramatan Home Invs. Corp. v Lopez,
46 NY2d 481, 485 [1979]). Therefore, OneSource is not entitled to amend its answer to assert the
defenses of res judicata and collateral estoppel, because the proposed amendments are
clearly devoid of merit (CPLR 3025 [b]; MBIA Ins. Corp. v Greystone & Co., Inc., 74 AD3d 499, 500 [1st
Dept 2010]).
Footnote 6:Citibank and OneSource also
appear to have abandoned their common-law indemnification and contribution claims against
OneSource and Golden Plow.
Footnote 7:While Citibank asserts that
OneSource's insurer has breached its duty to defend, the policy states that the insurer has the
"right but not the duty to defend any suit' seeking those damages" (Marris Affirm. in Support,
Exh. S).