Cullen and Dykman Obtains Summary Judgment and a Declaration of Defense and Indemnity on Behalf of Client. Designated Work and Designated Operations Exclusions Found Ambiguous.

General contractor’s insurer denied coverage based on “Designated Work” and “Designated Ongoing Operations” exclusions in its primary and excess policies which excluded coverage for claims that arose out of operations performed by the insured’s “own labor” except for supervisory personnel. The insured leased a forklift to move materials delivered to the site. Keys were left in the forklift and the 15-year old plaintiff in the underlying action took the forklift for a joy ride at 2:00 a.m. on a Sunday morning when the site was closed, causing it to tip over, causing serious injuries to him. The insurance carrier argued that “arising out of” is to be interpreted broadly and the insured’s rental of equipment that led to the accident was by virtue of its own labor. The court accepted our arguments that “own labor” was not defined in the policy, that the provision was subject to more than one interpretation rendering it ambiguous, and required that the provision be interpreted in favor of the coverage for the insured. We urged the boy was not the insured’s own labor and the site was closed with no work taking place. The court found that while the insurance carrier’s interpretation was reasonable, it ignored the underlying facts of the claim. The court accepted all of our arguments and declared defense and indemnity coverage is owed the insured general contractor under both the primary and excess policies, and that the carrier must reimburse the insured its attorneys’ fees in defending the underlying action.

About Cullen and Dykman’s Construction Litigation Department

The attorneys in our Construction Litigation department have a long history of representing clients in all phases of construction projects, from contract negotiations and financing transactions to management claims, arbitration, and litigation. In fact, the Brooklyn Bridge owes its famous profile to one of the firm's founding partners who chaired the group that selected John Roebling's world-renowned design.

About Cullen and Dykman

Cullen and Dykman (www.cullenllp.com) has been providing legal services to institutional clients since 1850. The firm represents a wide range of clients, including banks and other financial institutions, energy, telecommunications and water companies, construction companies, insurers, educational institutions, religious organizations, and not-for-profits. With over 190 attorneys in seven offices located throughout the Northeast and Mid Atlantic regions, Cullen and Dykman is strategically positioned to meet the changing needs and demands of our clients.