H & M Hennes & Mauritz LP v. Skanska USA Building, Inc.

617 F. Supp. 2d 152, 2008 U.S. Dist. LEXIS 103877, 2008 WL 5377941
CourtDistrict Court, E.D. New York
DecidedDecember 23, 2008
Docket07 CV 1723(CLP)
StatusPublished
Cited by6 cases

This text of 617 F. Supp. 2d 152 (H & M Hennes & Mauritz LP v. Skanska USA Building, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H & M Hennes & Mauritz LP v. Skanska USA Building, Inc., 617 F. Supp. 2d 152, 2008 U.S. Dist. LEXIS 103877, 2008 WL 5377941 (E.D.N.Y. 2008).

Opinion

MEMORANDUM AND ORDER

CHERYL L. POLLAN, United States Magistrate Judge.

On April 25, 2007, plaintiff H & M Hennes & Mauritz LP (“H & M”) commenced this subrogation action against defendant Skanska USA Building, Inc. (“Skanska”), as successor-in-interest to Barney Skanska Inc. and Sordoni Skanska Inc., and defendant Seasons Contracting Corp. (“Seasons”), seeking compensation for damage to plaintiffs store which was allegedly caused by construction work performed by defendants under a contract with plaintiffs landlord, Macerich Queens Limited Partnership (“Macerieh”). Defendant Skanska moves for summary judgment, seeking dismissal of the case in its entirety on the grounds that plaintiffs lease agreement included a waiver of subrogation provision which precludes plaintiffs claims.

On June 26, 2008, the case was reassigned to the undersigned based on the parties’ consent. On November 17, 2008, the Court heard oral argument on Skanska’s motion, and hereby grants the motion and dismisses all claims against Skanska.

FACTUAL BACKGROUND

Plaintiff H & M is a New York-based clothing retailer. (Compl. 1 ¶ 1). Defendant Skanska 2 is a general contracting and construction management corporation *154 organized under Delaware law, with its principal offices located in New Jersey. (Id. ¶ 2). Defendant Seasons is a New Jersey-based construction corporation. (Id. ¶ 4). Plaintiff brings this action under New York law pursuant to the Court’s diversity jurisdiction.

On September 5, 2001, H & M entered into a lease agreement with Macerich to rent space for a retail clothing store located in the Queens Center Mall (“the Mall”). (Stmt, of Facts 3 ¶ 9; Compl. ¶¶ 1, 7-10; Def.’s Aff. 4 Ex. D at 1). The lease agreement contemplated a possible expansion of H & M’s space and a related expansion of the Mall, which is an indoor Mall containing other retail establishments, parking spaces, hallways, and various common areas. (Def.’s Aff. Ex. D, Exs. B-3, -4).

On June 21, 2002, Macerich entered into a contract with Skanska to perform renovations at the Mall, at a contract price of roughly $17 million. (Stmt, of Facts ¶ 6; Compl. ¶ 13). Skanska subcontracted some of the renovation work to defendant Seasons. (Stmt, of Facts ¶ 7).

On or about April 27, 2004, a flood occurred in plaintiffs retail space, causing significant damage to the store and its merchandise. (Compl. ¶¶ 16, 18). H & M alleges that the flooding of its store was caused by the negligent performance of renovation work by Seasons. (Stmt, of Facts ¶¶ 3, 7; Compl. ¶¶ 13, 17). H & M further alleges that, because it was an intended third party beneficiary of Skanska’s contract with Macerich and Seasons’ subcontract with Skanska, defendants breached duties of care owed to plaintiff under these agreements. (Compl. ¶¶26-28). H & M’s losses have been covered by its insurance carrier, and this lawsuit is a subrogation action brought by the insurance carrier in plaintiffs name, seeking compensatory damages in the amount of $310,353.00. (Stmt, of Facts ¶ 8; Compl. ¶ 24).

Defendant Skanska moves for summary judgment in its favor, seeking to dismiss H & M’s subrogation claim on that grounds that the lease agreement between H & M and Macerich contains a waiver of subrogation provision that precludes any claims by H & M against independent contractors hired by Macerich. H & M contends that the provision was not intended to apply to Skanska because the work it performed was outside the type of activities contemplated by the lease subrogation clause and because, as applied to Skanska, the provision violates concepts of mutuality under New York contract law in that Skanska did not obtain the appropriate insurance coverage required by the lease provision.

DISCUSSION

A. Standards for Summary Judgment

It is well-settled that a party moving for summary judgment has the burden of establishing that there is no genuine issue of material fact in dispute and that the moving party is entitled to judgment as a *155 matter of law. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 256, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Thompson v. Gjivoje, 896 F.2d 716, 720 (2d Cir.1990). Since summary judgment is an extreme remedy, cutting off the rights of the non-moving party to present a case to the jury, see Egelston v. State Univ. Coll. at Geneseo, 535 F.2d 752, 754 (2d Cir.1976); Gibralter v. City of New York, 612 F.Supp. 125, 133-34 (E.D.N.Y.1985), the court should not grant summary judgment unless it is clear that all of the elements have been satisfied. See Auletta v. Tully, 576 F.Supp. 191, 194 (N.D.N.Y.1983), aff'd, 732 F.2d 142 (2d Cir.1984). In addition, “ ‘the inferences to be drawn from the underlying facts ... must be viewed in the light most favorable to the party opposing the motion.’ ” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587-88, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) (quoting United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 8 L.Ed.2d 176 (1962)).

Once the moving party discharges its burden of proof under Rule 56(c) of the Federal Rules of Civil Procedure, the party opposing summary judgment “has the burden of coming forward with ‘specific facts showing that there is a genuine issue for trial.’ ” Phillips v. Kidder, Peabody & Co., 782 F.Supp. 854, 858 (S.D.N.Y.1991) (quoting Fed.R.Civ.P. 56(e)). Rule 56(e) “provides that a party opposing a properly supported motion for summary judgment may not rest upon mere allegation or denials of his pleading.” Anderson v. Liberty Lobby, Inc., 477 U.S. at 256, 106 S.Ct. 2505. Indeed, “the mere existence of some alleged factual dispute between the parties” alone will not defeat a properly supported motion for summary judgment. Id. at 247-48, 106 S.Ct. 2505 (emphasis added).

In reversing a grant of summary judgment, the Second Circuit noted that the “[tjrial court’s task at the summary judgment motion stage of litigation is carefully limited to discerning whether there are any genuine issues of material fact to be tried, not to deciding them.” Quaratino v.

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617 F. Supp. 2d 152, 2008 U.S. Dist. LEXIS 103877, 2008 WL 5377941, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-m-hennes-mauritz-lp-v-skanska-usa-building-inc-nyed-2008.