Contractors Can't Escape Insurer's $1.4M Water Damage Suit

Law360 (June 1, 2020, 9:29 PM EDT) -- A Massachusetts federal judge on Monday rejected construction contractors' bid to escape a suit brought by Factory Mutual Insurance Co., which alleged that negligence caused more than $1.37 million in water damage at a Novartis facility.

U.S. District Judge Donald Cabell said Skanska USA Building Inc. and J.C. Cannistraro LLC's arguments that Factory Mutual cannot sue them because an insurer cannot bring a subrogation action against its own policyholders do not stand. The two contractors said earlier that they are also insured under Novartis' policy with Factory Mutual, and anti-subrogation doctrine prohibits an insurer from seeking indemnification against a third party who...

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