Attorneys Mavros and Mallon recently were granted summary judgment in a complex products liability subrogation matter involving a large fire loss occurring at a La Quinta Inn and Suites in Chambersburg, PA.
Mavros and Mallon were defending the alleged target defendant, a sprinkler company that subcontracted with the general contractor. In discovery, it was determined that the Owner (subrogee) and the General Contractor entered into a standard AIA Construction Agreement when constructing the hotel, despite Plaintiff initially claiming the AIA Agreement did not exist. That Agreement incorporated standard AIA terms that included a waiver of subrogation clause. A Motion to Suspend Discovery was filed, as well as a Motion for Summary Judgment, seeking a legal determination of whether that Waiver of Subrogation clause barred the vast majority of Plaintiff’s damage claims. Plaintiff argued that the waiver of subrogation clause only precluded claims arising out of the construction and also there was a dispute of material facts as to whether the terms were ever to be incorporated.
After substantive briefing and a two-hour oral argument, the Court issued a 26-page opinion granting Defendants’ Motion and found that the waiver language was incorporated and did apply to post-construction losses. The granting of summary judgment reduced over 90% of Plaintiff’s recoverable damages.