Association Construction Contracts — What are Risks of That Waiver of Subrogation Term?
The U.S. Court of Appeals for the 4th Circuit held that a subrogation waiver provision in a construction contract barred an association’s insurance company from seeking to recover from an allegedly negligent contractor, reports Daniel Miske in the Husch Blackwell Association Alert.
He describes the case of United National Insurance Company v. Peninsula Roofing Company, Inc., which involved $3 million in damages to a condominium complex caused by a contractor’s generator. The association’s insurer sued the contractor for negligence, gross negligence, and breach of contract.
After detailing the appellate court’s ruling, Miske presents four lessons a practitioner can learn from the case.
