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5 F. Supp. 3d 452
S.D.N.Y.
2014
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Background

  • Plaintiff Steven Wallace, a Weeks Marine dock worker, fell from wooden floating stages while carrying a rebar cage during rehabilitation of Amtrak’s Pelham Bay Bridge and entered the water; he sued Amtrak in New York state-law claims (negligence, NYLL §§ 200, 240(1), 241(6)).
  • Weeks Marine was the general contractor; Amtrak contracted with Weeks and staffed project managers/inspectors but did not direct day-to-day work; Weeks owned and maintained the float stages.
  • Weeks’s contract with Amtrak contained a broad indemnification clause requiring Weeks to defend and indemnify Amtrak for claims arising out of Weeks’s work and required Weeks to purchase both a CGL policy (Weeks insured) and a Railroad Protective Liability (RPL) policy (naming Amtrak as insured) purchased from Liberty.
  • Liberty (insurer for the RPL) and Amtrak disputed coverage responsibility; Amtrak ultimately replaced Weeks-selected counsel with counsel chosen in consultation with Liberty; Weeks reserved rights as to indemnity.
  • Summary judgment motions: Wallace sought liability on NYLL § 240(1) and § 241(6); Amtrak and Weeks sought judgment dismissing Wallace’s claims and sought indemnification from Weeks; Weeks sued Liberty seeking RPL coverage.
  • The court resolved liability and contract/coverage issues at summary judgment: granted Wallace § 240(1) liability; denied summary judgment on the § 241(6) slipping claim (genuine issues); granted Amtrak judgment on common-law/negligence and § 200 claims; held Weeks contractually obligated to indemnify Amtrak and to pay defense costs; rejected Weeks’s arguments that Amtrak’s RPL or Liberty’s primary status relieved Weeks.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Applicability of NYLL § 240(1) to fall from float stage Wallace: float stages are platforms called for by the work; defect caused fall — statute applies strictly to elevation-related risks Amtrak/Weeks: float stage was mere passageway or not an elevation risk; distance fallen was minimal; life vest eliminates risk Held: § 240(1) applies; summary judgment for Wallace on liability (float stage analogous to scaffold/platform)
NYLL § 241(6) (Industrial Code §23-1.7(d) slipping hazards) Wallace: algae/moss made stages slippery; that proximately caused fall Amtrak/Weeks: plaintiff denied slipping; evidence insufficient Held: genuine factual dispute exists on slipping (denied summary judgment both ways)
Common-law negligence and NYLL § 200 (owner/contractor supervisory liability) Wallace: Amtrak had site personnel and project manager — liable Amtrak: did not supervise manner of work; Weeks provided and maintained float stages Held: Amtrak lacked supervisory control re manner; no notice of dangerous condition — Amtrak entitled to summary judgment on § 200 and common-law negligence
Contractual indemnity / priority with insurer (Weeks v. Amtrak/Liberty) Amtrak: Weeks must indemnify and reimburse defense costs under broad contract clause; indemnity can be adjudicated now as third-party claim Weeks: indemnity not yet ripe until Amtrak pays; RPL is primary so Liberty pays first; Amtrak’s replacement of defense counsel extinguished indemnity/defense obligations Held: Contract (governed by D.C. law) unambiguously requires Weeks to indemnify Amtrak (including Amtrak negligence); third-party adjudication appropriate; Weeks’ indemnity not displaced by RPL or Amtrak’s defense choice; Weeks must reimburse defense costs

Key Cases Cited

  • Dooley v. Peerless Imps., Inc., 42 A.D.3d 199 (N.Y. App. Div. 2007) (floating platform analogous to scaffold; § 240(1) applies to falls into water)
  • Runner v. N.Y. Stock Exch., Inc., 13 N.Y.3d 599 (N.Y. 2009) (§ 240(1) protects against risks from a physically significant elevation differential)
  • Rocovich v. Consol. Edison Co., 78 N.Y.2d 509 (N.Y. 1991) (§ 240(1) limited to gravity/elevation-related hazards)
  • Cahill v. Triborough Bridge & Tunnel Auth., 4 N.Y.3d 35 (N.Y. 2004) (strict liability under § 240(1); plaintiff’s negligence not a defense unless sole proximate cause)
  • N.P.P. Contractors, Inc. v. John Canning & Co., 715 A.2d 139 (D.C. 1998) (D.C. law enforces clear contractual indemnification for indemnitee’s negligence)
  • Cevasco v. National Railroad Passenger Corp., 606 F. Supp. 2d 401 (S.D.N.Y. 2009) (third-party indemnity claims against contractor under similar Amtrak contract can be adjudicated prior to payment)
  • St. Paul Fire & Marine Ins. Co. v. Am. Int'l Spec. Lines Ins. Co., 365 F.3d 263 (4th Cir. 2004) (indemnitor/insurer bearing contractual indemnity obligations — indemnity takes priority over indemnitee’s insurer coverage)
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Case Details

Case Name: Wallace v. National Railroad Passenger Corp.
Court Name: District Court, S.D. New York
Date Published: Mar 18, 2014
Citations: 5 F. Supp. 3d 452; 2014 U.S. Dist. LEXIS 36346; 2014 WL 1088906; No. 11 Civ. 5419(AJN)
Docket Number: No. 11 Civ. 5419(AJN)
Court Abbreviation: S.D.N.Y.
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