Performance Services, Inc., an Indiana Corporation and Huntingburg Machine Works, Inc., an Indiana Corporation v. Hanover Insurance Company, as Subrogee of the Southwest Dubois County Schools, 85 N.E.3d 655

Southwest Dubois County School Corp. hired a construction manager under an AIA-based Construction Manager Contract that included a broad waiver of subrogation by the owner and construction manager "and against the Contractors" for losses covered by property insurance.
Southwest later contracted with PSI to supply and install an HVAC system; the PSI contract contained an integration clause and no express subrogation waiver or incorporation of the Construction Manager Contract.
PSI subcontracted piping and sheet-metal work to Huntingburg; the Huntingburg subcontract incorporated the PSI contract and contained a subrogation-waiver clause in favor of PSI and Southwest.
Water from an uncapped pipe damaged school technology equipment in 2011; Hanover (Southwest’s insurer) paid $698,661.71 and received a release from Southwest when it settled the claim in 2012.
Hanover, as subrogee, sued PSI and Huntingburg in 2014 seeking recovery; PSI and Huntingburg moved for summary judgment arguing Hanover’s subrogation claim was barred by the Construction Manager Contract waiver. The trial court denied summary judgment; the denial was certified for interlocutory appeal.
The Court of Appeals held the Construction Manager Contract’s waiver of subrogation applied to bar Hanover’s subrogation claim and reversed to grant summary judgment for PSI and Huntingburg.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Hanover’s subrogation claim is barred by the Construction Manager Contract waiver of subrogation	Hanover: PSI contract is a separate, later agreement that does not incorporate the Construction Manager Contract, so no waiver applies	PSI/Huntingburg: The Construction Manager Contract waived subrogation "against the Contractors," and that waiver binds subsequent contractors and their insurers/subrogees	Waiver in the Construction Manager Contract applied; Hanover’s subrogation claim barred and summary judgment for PSI/Huntingburg required

Jefferson County v. Teton Corp., 30 N.E.3d 711 (Ind. 2015) (AIA-style waiver bars subrogation against contractors for all damages covered by the owner’s property insurance)
Best Friends Pet Care, Inc. v. Design Learned, Inc., 823 A.2d 329 (Conn. App. 2003) (owner–general-contractor waiver enforces against claims by insurer despite lack of identical waiver in subcontractor contract)
Behr v. Hook, 787 A.2d 499 (Vt. 2001) (absence of mutual waivers with subcontractors does not defeat the primary purpose of the AIA subrogation waiver)
South Tippecanoe Sch. Bldg. Corp. v. Shambaugh & Son, Inc., 395 N.E.2d 320 (Ind. Ct. App. 1979) (AIA insurance/allocation provisions show intent to place construction risk on insurers and permit enforcement of subrogation waivers)