CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - MONDAY, JULY 14, 2025

Indemnity Provision Prevails Over "Other Insurance" Clause

Pen resting on insurance policy

Attorney Tred R. Eyerly discusses Cent. Sur. Co. v. Metro. Transit Auth.

December 6, 2021
Tred R. Eyerly - Insurance Law Hawaii

The Second Circuit predicted that the New York appellate courts would find the contractual indemnity provision prevailed over the application of an "other insurance" provisions. Cent. Sur. Co. v. Metro. Transit Auth., 2021 U.S. App. LEXIS 29860 (2nd Cir. Oct. 5,2021).

Long Island Railroad (LIRR) contracted with general contractor Rukh Enterprises, Inc. to complete a railroad bridge lead paint removal and repainting project on Metropolitan Transit Authority property. Rukh hired subcontractor, East Coast Painting & Maintenance to complete certain lead-related work on the project.

An employee of East Coast suffered an injury while working on the project. The employee sued LIRR and Rukh. A settlement in the underlying case was reached, implicating three of four policies - Admiral (primary for LIRR), Arch (CGL for Rukh), and Harleysville (primary for East Coast). Century Surety (excess liability for Rukh) did not contribute to the settlement and disclaimed all coverage.

Mr. Eyerly may be contacted at te@hawaiilawyer.com


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