Wallace v. National Railroad Passenger Corp.Wallace v. National Railroad Passenger Corp.
MEMORANDUM & ORDER
Plaintiff Steven Wallace was injured when he fell from a floating platform that he was working on while repairing a bridge'owned by Defendant National Railroad Passenger Corp. d/b/a Amtrak (“Amtrak”). In this diversity action, Wallace brought several state law causes of action against Amtrak, seeking to recover for his injuries. Amtrak, in turn, filed a third-party complaint against Wallace’s employer, Weeks Marine, Inc. (“Weeks”), alleging that Weeks had indemnified it against Wallace’s claims. Weeks then brought a fourth-party complaint against Liberty Surplus Insurance Corp. (“Liberty”), Amtrak’s insurer, claiming that Liberty, not Weeks, should pay for Wallace’s injuries.
Following discovery, the parties filed motions for summary judgment, which are now before the Court. Wallace moves for summary judgment as to liability on his claims under New York Labor Law Sections 240(1) and 240(6), Dkt. No. 58; Amtrak and Weeks move for summary judgment on all of Wallace’s claims against Amtrak, Dkt. Nos. 46, 51; Amtrak and Weeks cross-move for summary judgment on Amtrak’s claims against Weeks, Dkt. Nos. 89, 95; and Liberty and Weeks cross-move for summary judgment on Weeks’s claims against Liberty, Dkt. Nos. 95, 102. For the following reasons, Wallace’s motion is granted in part and denied in part, Amtrak’s and Weeks’s motions against Wallace are granted in part and denied in part, Amtrak’s motion against Weeks is granted in part and denied in part, Weeks’s motion against Amtrak is granted in part and denied in part, Weeks’s motion against Liberty is denied, and Liberty’s motion against Weeks is granted in part and denied in part. In light of this disposition, Weeks’s cross-motion to strike portions of Wallace’s affidavit, Dkt. No. 63, is denied as moot.
I. BACKGROUND
Unless otherwise noted, the following facts are undisputed and are based on the Court’s review of the record, undertaken with particular attention to the evidence cited in the parties’ Local Rule 56.1 statements. See Monahan v. N.Y.C. Dep’t of Corr.,
A. The Construction Project
The Pelham Bay Bridge is a railroad bridge that crosses the Hutchinson River. Amtrak 3/1 56.1 ¶¶ 5-6.
Amtrak stationed safety officers at the bridge to help prevent Weeks’s employees from being hit by trains. Amtrak 3/1 56.1 ¶24. Additionally, John Ramo, Amtrak’s project manager for the Pelham Bay Bridge project, attended about 50 meetings there to oversee the project and attend progress meetings. Ramo Dep., Hansen Aff. Ex. 4, at 14. He testified that he was at the bridge about once a week, and that Amtrak had several employees stationed there daily, including an inspector to ensure that “the contractors’ operations [would not] impact the safe passage of trains” and that the project was proceeding on schedule. Id. at 17-20.
B. Wallace’s Accident
Wallace, a Weeks employee, worked as a dock builder on the bridge project for several weeks during the spring of 2010. Amtrak 3/1 56.1 ¶ 5; Weeks 3/1 56.1 ¶ 4; Wallace Dep., Joseph 3/1 Decl. Ex. B, at 11. One of his tasks was installing rebar cages around the bridge pilings. Weeks 3/1 56.1 ¶¶ 5, 9. To allow its workers to access the pilings, Weeks used a series of wooden “float stages” that were set in the water. The float stages were composed of 12" by 12" or 16" by 16" wooden planks, approximately 20 feet long, which were pinned together side by side, for a total width of five to six feet. Amtrak 3/1 56.1 ¶¶ 9-11; Weeks 3/1 56.1 ¶¶ 6-7; Wallace 56.1 ¶8. These float stages acted as “sidewalks” along which Weeks workers could walk in order to access the piles. Amtrak 3/1 56.1 ¶ 10. The tops of the float stages were about three to four inches above the surface of the water, but could be lower depending on how much weight they were bearing at any given time. Id. ¶ 12. Weeks owned and maintained these float stages. Id. ¶ 13.
Wallace testified at his deposition that the float stages were in bad condition, in that they had pieces of wood missing and “were literally falling apart under your feet, a lot of them.” Wallace Dep., Joseph 3/1 Decl. Ex. B, at 60. Jason Monach, Wallace’s co-worker, also testified that Weeks employees often had to repair parts of the float stages “where the wood was not quite flush and it was awkward to walk on.” Monach Dep., Hansen Aff. Ex. 8, at 43. Additionally, Mark McMahon, a Weeks foreman, stated in his deposition
On May 6, 2010, Wallace and his coworkers were in the process of installing a rebar cage. A crane initially lowered the cage from a barge onto a float stage. Weeks 3/1 56.1 ¶ 11; Wallace 3/1 56.1 ¶ 11. Then, Wallace and three others began carrying the cage along the float stages, with one worker holding each corner of the cage. Wallace Dep., Joseph 3/1 Decl. Ex. A, at 56. The workers walked on the outside of the cage, so that they were near the edge of the float stages, with the cage suspended between them over the center of the stages. Wallace 3/1 56.1 ¶ 13; Wallace Dep., Joseph 3/1 Decl. Ex. A, at 56. Wallace manned the front right corner of the cage, with his right side facing the water. Wallace Dep., Joseph 3/1 Decl. Ex. A, at 56; Quesada Dep., Joseph 3/1 Decl. Ex. J, at 79. The other Weeks employees carrying the cage were Monach, Peter Fitzpatrick, and Matthew Quesada. Amtrak 3/1 56.1 ¶ 15 n. 10.
The four men had walked along two float stages and had crossed to a third when Wallace fell. Weeks 3/1 56.1 ¶¶ 12-13. At his deposition, Wallace stated that his fall resulted from his stepping on the side of the float stage, where a piece of the float stage was “missing.” Wallace Dep., Joseph 3/1 Decl. Ex. B, at 259, 262. After he stepped on the missing piece of the float stage, Wallace testified, his “leg rolled under where the piece was missing and then [he] went down to the float stage and into the water.” Id. at 259; Weeks 3/1 56.1 ¶ 13. Monach, Wallace’s co-worker, recalls Wallace stating at the time of the accident that he “he slipped on the float stage.” Monach Dep., Hansen Aff. Ex. 8, at 67; see also id. at 78-79 (“I do believe [Wallace] mentioned that he slipped.”). According to Monach, who examined the area where Wallace fell after the accident occurred, the float stage had “a small rounded edge to the side [Wallace] was walking on,” which “had a little bit of algae on the side and underneath part.” Id. at 67.
After falling from the float stage, Wallace ended up in the water, although it is unclear whether he was ever fully submerged. Compare Wallace Dep., Betanc-ourt 3/1 Decl. Ex. A, at 249 (fully submerged), with Monach Dep., Betancourt 3/1 Decl. Ex. E, at 76 (about two-thirds submerged). In any event, he bobbed to the surface because he was wearing a life vest, and his co-workers pulled him out. Wallace Dep., Betancourt 3/1 Decl. Ex. A, at 249. In all, Wallace was in the water for less than a minute. Amtrak 3/1 56.1 ¶ 19. He testified at his deposition that he did not know how deep he fell or whether he impacted the bottom of the river. Wallace Dep., Joseph 3/1 Decl. Ex. B, at 69-71, 250. The parties dispute how deep the water in the river was at the time Wallace fell: Amtrak and Weeks claim that, based on the tides, the water was no more than four and a half feet deep. Amtrak 3/1 56.1 ¶ 20; Weeks 3/1 56.1 ¶ 17. However, Que-sada stated at his deposition that he thought the water was about twelve feet deep. Wallace 56.2 3/1 ¶21. Wallace’s affidavit, submitted in connection with his motion for summary judgment, states that the water was approximately six to ten feet deep. Wallace Aff. ¶ 8.
After Wallace was removed from the water, his leg was bleeding and he was in pain, but he was not sure whether he was
Following Wallace’s fall, his co-worker Fitzpatrick examined the float stage and saw that it was damaged where Wallace fell. Wallace 56.1 ¶ 24; Fitzpatrick Dep., Hansen Aff. Ex. 6, at 46-49. Additionally, a post-accident report prepared by Travis Iapicco, Weeks’s field engineer, stated that the cause of Wallace’s accident was a “small area of float stage missing on [the] outermost edge.” Iapicco Dep., Hansen Aff. Ex. 3, at 50. However, Iapicco also testified that the missing piece on the edge of the float stage was “nothing abnormal” and part of general wear and tear. Iapic-co Dep., Joseph 3/22 Opp. Decl. Ex. C, at 32. Moreover, Iapicco was pointed to the relevant area of float stage by McMahon, and there is no evidence that either Iapic-co or McMahon actually knew which float stage Wallace fell from, since the stages were frequently rearranged and had no identifying characteristics. Amtrak 3/22 56.1 Resp. ¶ 10.
C. The Parties’ Contracts
On or about September 17, 2009, Amtrak and Weeks entered into a contract (the “Construction Contract”), under which Weeks would be the general contractor for the bridge project. Weeks 8/14 56.1 Resp. (Amtrak) ¶¶ 6-8; Joseph 7/25 Decl. Ex. A. The contract provides that it is to be “governed by and construed in accordance with the laws of the District of Columbia without regard to choice of law consideration.” Joseph 7/25 Decl. Ex. A § 81.1.
The Construction Contract also contains a section titled “Indemnification.” That section provides:
68.1. Contractor [Weeks] agrees to defend, indemnify and hold harmless Amtrak, its officers, directors, employees, agents, servants, successors, assigns and subsidiaries (collectively “Indemnified Parties”) from and against any claims, losses, liabilities (including without limitation environmental liabilities), penalties, fines, causes of action, suits, costs, and expenses incidental thereto (including costs of defense and attorneys’ fees) (collectively “Claims”) which any of the Indemnified Parties may hereafter incur, be responsible for or pay as a result of breach of warranty, injury or death of any person, or damage to or loss (including loss of use) any property, including property of the parties hereto, arising out of or in any degree directly or indirectly caused by or resulting from materials or deliverables supplied by, or from activities of, or Work performed by Contractor, Contractor’s officers, employees, agents, subcontractors, or any other person acting for or with the permission of Contractor under the Contract, or as a result of Contractor’s failure to perform its obligations in compliance with the Contract Documents.
68.2. In addition to the foregoing, Contractor agrees to defend, indemnify andhold harmless the Indemnified Parties, irrespective of any negligence or fault on the part of the Indemnified Parties, from and against any Claims which any of the Indemnified Parties may hereafter incur, be responsible for or pay as a result of injuries (including death) to any of Contractor’s employees, agents or subcontractors.
68.3. The indemnification obligation under this Section shall not be limited by the existence of any insurance policy procured or maintained by Contractor or by any limitation on the amount or type of damages, compensation or benefits payable by or for Contractor or any subcontractor and shall survive the termination of the Contract.
Joseph 7/25 Decl. Ex. A § 68.
The Construction Contract also contains a section titled “Insurance,” which requires Weeks to “procure and maintain, at all times during the term of this Contract, at its own cost and expense, the types of insurance specified herein.” Joseph 7/25 Decl. Ex. A § 69.1. Two of those types were commercial general liability insurance and railroad protective liability insurance. The contract described those types of insurance, respectively, as follows:
(b) Commercial General Liability Insurance. A policy issued to and covering liability imposed upon Contractor arising out of the Work to be performed and all obligations assumed by Contractor under the terms of this Contract....
(e) Railroad Protective Liability Insurance .... A policy ... in the name of [Amtrak] (and any other railroad operating over the tracks). The policy shall have a combined single limit of liability of not less than two million dollars ($2,000,000) per occurrence for Coverages A and B with a six million dollar ($6,000,000) annual aggregate.... The original policy shall be submitted to Amtrak prior to commencement of Work.
Id. § 69.2(b), (e). Pursuant to these requirements, Weeks purchased a railroad protective liability policy (the “RPL Policy”) and a commercial general liability policy (the “CGL Policy”).
The RPL Policy was issued by Liberty. Weeks 8/14 56.1 Resp. (Amtrak) ¶ 13. The premium for the RPL Policy was $47,021. Joseph 7/25 Decl. Ex. H Item 9. In the RPL Policy, Amtrak is listed as the “Named Insured,” and Weeks, which procured the policy, is listed as the “Designated Contractor.” Id. Items 1, 3. The policy defines the term “insured” as the Named Insured (that is, Amtrak), its executive officers and directors, its stockholders, and railroads operating over its tracks. Id. § II.1-4. It provides that Liberty will cover “those sums that the insured becomes legally obligated to pay as damages because of ‘bodily injury’ or ‘property damages’ to which this insurance applies,” but that such coverage applies only to injuries and damages that “arise[] out of acts or omissions at the ‘job location’ which are related to or are in connection with the ‘work’ described in the Declarations” (in addition to several other exclusions not relevant here). Id. § I.A.l.a, b. (The declarations section makes clear that the “job location” is Pelham Bay Bridge, and the “work” is the rehabilitation project that Amtrak contracted with Weeks to perform. Id. Items 5, 8.)
In addition, the RPL Policy contains a section titled “Other Insurance.” That section provides in relevant part that “[t]he insurance afforded by this policy is ... [pjrimary insurance and we will not seek contribution from any other insurance available to you except if the other insurance is provided by a contractor other than the designated contract for the same operation and ‘job location.’ ” Joseph 7/25
The CGL Policy that Weeks purchased was issued by the Indemnity Insurance Company of North America (“ACE”). Be-tancourt 8/14 Opp. Decl. (Amtrak) Ex. A. The premium for the CGL Policy was $675,000. Id. at 1. Under that policy, Weeks is the “Named Assured.” Id. at 5. The policy provides that it will pay on Weeks’s behalf for bodily injury and property damage claims, subject to the policy’s terms. Id. at 14. Like the RPL Policy, the CGL Policy contains a provision titled “Other Insurance,” which states:
If other valid and collectible insurance with any other Insurer is available to the Assured covering a loss also covered by this policy, other than Insurance, that is excess of the Insurance afforded by this Policy, the Insurance afforded by this Policy shall be in excess of and shall not contribute with such other Insurance, either as double insurance or otherwise. Nothing herein shall be construed to make this Policy subject to the terms and conditions and limitations of other insurance.
Id. § 14, at 9.
D. Amtrak’s Communications with Weeks and Liberty
On September 13, 2011, Amtrak’s Director of Claims/Litigation, Paul Michalski, sent a letter to Weeks, notifying it of Wallace’s claims and demanding that Weeks “protect, defend, indemnify and save Amtrak harmless in this litigation.” Joseph 7/25 Decl. Ex. B. Weeks did not respond to that letter. On September 14, Ronald Betancourt of the law firm Betanc-ourt, Van Hemmen, Greco & Kenyon LLC (“BVGK”) wrote to Michalski, stating that BVGK had been engaged by Weeks to defend Amtrak against Wallace’s claims. However, Betancourt’s letter did not mention Weeks’s indemnification obligation. Joseph 7/25 Decl. Ex. C. In light of that silence, Michalski emailed Teresa Olivo, Weeks’s personal injury claims manager, on September 15, 2011, expressing confusion about BVGK’s letter insofar as it was silent regarding indemnification. Michal-ski expressed his “understanding that Weeks Marine WILL indemnify Amtrak,” and asked Weeks to confirm that understanding. Joseph 7/25 Decl. Ex. D. Weeks’s corporate risk manager, Tom Langan, replied to Michalski, copying Oli-vo. Langan wrote, “I’m not sure what you find confusing” about BVGK’s letter, stated his view that BVGK’s letter indicated that it was litigation counsel, not coverage counsel, and did not mention Weeks’s indemnification obligation. Joseph 7/25 Decl. Ex. E.
At' the same time, Amtrak was also communicating with Liberty regarding Wallace’s claims. After being informed of the lawsuit, Liberty engaged Railway Claims Services, Inc. (“RCS”) to act as its third-party claims administrator. Liberty 56.1 Resp. ¶¶ 18, 19. On September 22, 2011, Randal Little, RCS’s director of operations, emailed Amtrak’s Michalski on Liberty’s behalf. The email stated that “Liberty’s Policy is a Railroad Protective Policy that provides coverage for and on behalf of Amtrak, and is not intended to serve as primary insurance for this loss.” It indicated that the Construction Contract between Amtrak and Weeks “clearly requires Weeks Marine to indemnify Amtrak for any injuries to Weeks Marine Employees.” As a result, Little wrote, “Liberty does not wish to participate in the direction and defense of this loss by Weeks and the attorney Weeks has elected to retain.” Little’s email also stated
According to Michalski’s deposition testimony, Amtrak’s typical practice when faced with personal injury claims was to tender its defense to the contractor and await a reply. If the contractor agreed to defend and indemnify Amtrak, then the contractor would assume Amtrak’s defense and appoint counsel of its choosing to represent Amtrak. However, if the contractor “did not respond in a favorable manner as to their requirements pursuant to the indemnity,” Amtrak would seek to protect its own interests. Michalski Dep., Muilen-berg Opp. Decl. Ex. B, at 45.
Accordingly, following Amtrak’s initial communications with Weeks and Liberty, and in light of Weeks’s continued silence regarding its indemnification obligations, Liberty, Amtrak, and RCS agreed that Landman Corsi Ballaine & Ford P.C. (“LCBF”) should represent Amtrak, rather than BVGK, which had been chosen by Weeks. Little Dep., Joseph 8/14 Opp. Decl. Ex. I, at 22, 52-53; Little Dep., Muilenberg Decl. Ex. K, at 43. On September 28, 2011, LCBF called BVGK’s Betancourt, stating that Liberty had instructed LCBF to take over Amtrak’s defense. Liberty 56.1 Resp. ¶¶ 22, 23. On October 6, 2011, Amtrak filed a notice of substitution of counsel, endorsed by Amtrak, in which LCBF was formally substituted for BVGK. Dkt. No. 5.
On October 7, 2011, after LCBF had taken over Amtrak’s defense, LCBF’s Ronald Joseph sent a letter to Weeks’s Langan. In the letter, Joseph summarized the earlier communications between Michalski and Weeks, and pointed to Weeks’s silence regarding its indemnification obligation. Joseph then quoted at length from the Construction Contract, and indicated that under the contract, Weeks was required to indemnify Amtrak against Wallace’s claims. Joseph asked Langan to sign a statement that ‘Weeks Marine will defend, indemnify and hold harmless” Amtrak in Wallace’s lawsuit. Joseph 7/25 Decl. Ex. F. The next day, Langan responded to Joseph by email. He wrote,
I have no intention of signing the statement at the bottom of your letter. The indemnification section of the contract speaks for itself.... I reserve the right to see if Wallace can prove that his alleged injuries were the result of the sole negligence or gross misconduct of Amtrak (which I recognize is highly unlikely). Nevertheless, if Wallace can make such a showing, I believe Amtrak’s indemnification clause can be challenged on public policy grounds as this was a construction contract.
Joseph 7/25 Decl. Ex. G.
E. Procedural History
Wallace filed a complaint against Amtrak on August 4, 2011, and the case was initially assigned to Judge Koeltl. Dkt. No. 1. Amtrak answered on October 7, and filed a third-party complaint against Weeks on October 20, which Weeks answered. Dkt. Nos. 8, 12. On February 14, 2012, the case was reassigned to the undersigned. On March 1, 2013, the parties filed their motions for summary judgment on Wallace’s claims, which were fully submitted as of March 29. On April 11, Weeks amended its answer to Amtrak’s third-party complaint in order to assert a fourth-party complaint bringing Liberty into the case. Dkt. Nos. 77, 83. Amtrak,
II. LEGAL STANDARD
Summary judgment is appropriate when, after reviewing the evidence in the light most favorable to the non-moving party, Nabisco v. Warner-Lambert Co., 220 F.3d 43, 45 (2d Cir.2000), “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law,” Fed.R.Civ.P. 56(a). “A dispute is not ‘genuine’ unless ‘the evidence is such that a reasonable jury could return a verdict for the nonmoving party.’” Nabisco,
Although Rule 56 places the burden on the moving party to demonstrate that no genuine issue of material fact exists, “[w]hen the burden of proof at trial would fall on the nonmoving party, it ordinarily is sufficient for the movant to point to a lack of evidence ... on an essential element of the nonmovant’s claim.” Cordiano v. Metacon Gun Club, Inc.,
Finally, much of this case centers on the interpretation of contractual provisions. “Summary judgment is generally proper in a contract dispute only if the language of the contract is wholly unambiguous.” Compagnie Financiere de CIC et de L’Union Europeenne v. Merrill Lynch, Pierce, Fenner & Smith Inc.,
III. DISCUSSION
The Court first addresses Wallace’s claims against Amtrak, then Amtrak’s claims against Weeks, and finally Weeks’s claims against Liberty.
A. Wallace’s Claims Against Amtrak
Wallace asserts claims under New York law for common law negligence and violations of New York Labor Law Sections 200, 240(1), and 241(6). Compl. ¶¶ 19, 27; Wallace Opp. at 1. Weeks and Amtrak both move for summary judgment in Amtrak’s favor on all of these claims, and Wallace moves for summary judgment on his claims under Labor Law Sections 240(1) and 241(6). Dkt. Nos. 46, 51, 58. Wallace has briefed only his Section 240(1) claims separately, leaving his Section 241(6) arguments for his opposition brief. But this irregularity is of no moment, since in any event “a court may grant summary judgment to a non-moving party, provided that party has had a full and fair opportunity to meet the proposition that there is no genuine issue of material fact to be tried.” First Fin. Ins. Co. v. Allstate Interior Demolition Corp.,
Before turning to the merits of Wallace’s claims, the Court addresses Amtrak’s contention that because Wallace failed to file a response to its Local Rule 56.1 statement of undisputed facts, the allegations in its statement should be deemed true for purposes of this motion. See, e.g., Galasso v. Eisman, Zucker, Klein & Ruttenberg,
2. Common Law Negligence and Labor Law Section 200
Labor Law Section 200 is “a codification of the common-law duty imposed upon an owner or general contractor to maintain a safe construction site,” Rizzuto v. Wenger Contracting Co.,
Ordinarily, “there is no liability under the common-law or Labor Law § 200 unless the owner or general contractor exercised supervision or control over the work performed.” Cun-En Lin,
Although Wallace argues that this is a premises case, Weeks — and not Amtrak— owned and provided the float stages at Wallace’s work site. Amtrak (Wallace) Reply at 3; Amtrak 3/1 56.1 ¶ 13. Therefore, because a float stage is analogous to a ladder or scaffold, see Dooley v. Peerless Imps., Inc.,
There is no evidence from which a jury could conclude that Amtrak supervised or controlled the manner of Wallace’s work. “[M]ere general supervisory authority at a worksite for the purpose of overseeing the progress of the work and inspecting the work product is insufficient” for liability; the defendant must “bear[] the responsibility for the manner in which the work is performed.” Ortega,
Wallace appears to concede as much, as his chief argument against summary judgment is that Amtrak and Weeks have not pointed to any evidence that Amtrak knew of a defective condition on the premises. Wallace Opp. at 2-5. But even if this is a premises ease, Wallace misunderstands the parties’ burdens under Rule 56. Whether Amtrak had notice of a defective condition is an element of Wallace’s case that he would be required to prove at trial. See, e.g., Custer v. Cortland Housing Auth.,
There is no evidence that Amtrak had notice of any defects that may have afflicted the float stage where Wallace’s accident occurred. Wallace denies that he ever told Amtrak about such conditions. Wallace Dep., Joseph 3/1 Decl. Ex. B, at 264. Under the misimpression that this lack of proof works to his benefit in this procedural posture, Wallace has not “come forward with admissible evidence sufficient to raise a genuine issue of fact for trial.” Cordiano,
3. Labor Law Section 2íl(6)
Labor Law Section 241(6) requires owners and contractors to comply with regulations promulgated by New York’s Commissioner of the Department of Labor. See Ross v. Curtis-Palmer Hydro-Electric Co.,
Slipping hazards. Employers shall not suffer or permit any employee to use a floor, passageway, walkway, scaffold, platform or other elevated working surface which is in a slippery condition. Ice, snow, water, grease and any other foreign substance which may cause slippery footing shall be removed, sanded or covered to provide safe footing.
N.Y. Comp.Codes R. & Regs. tit. 12, § 23-1.7(d). Subsection (e)(2) provides:
Working areas. The parts of floors, platforms and similar areas where persons work or pass shall be kept free from accumulations of dirt and debris and from scattered tools and materials and from sharp projections insofar as may be- consistent with the work being performed.
Id. § 23-1.7(e)(2). An owner’s duties under Section 241(6) are nondelegable, so Wallace “need not show that [Amtrak] exercised supervision or control over his worksite in order to establish his right of recovery.” Ross,
The Court concludes that factual issues preclude Amtrak’s and Weeks’s motions for summary judgment with respect to Wallace’s claim under subsection (d). Weeks initially argues that under O’Sullivan v. IDI Construction Co.,
Weeks and Amtrak also challenge Wallace’s assertion that his accident was caused by a slipping hazard. See Amtrak (Wallace) Reply at 4; Weeks (Wallace) Reply at 10. Upon reviewing the record, however, the Court concludes that there is sufficient evidence supporting Wallace’s claim to create a material factual issue.
In his Rule 56.1 statement, Wallace asserts that the side of the float stage that he fell off of was slippery and covered in algae. Wallace 56.1 ¶¶ 26-27. The basis for this statement is the deposition testimony of Monach, who was helping Wallace carry the rebar cage along the float stage when Wallace fell. Monach testified that when Wallace fell in the water, “he said he slipped on the float stage. And when we looked at it, there was a small rounded edge to the side he was walking on. It had a little bit of algae on the side and underneath part.” Monach Dep., Hansen Aff. Ex. 8, at 67; see also id. at 78-79 (“I do believe [Wallace] mentioned that he slipped. And we collectively looked where he was standing and we saw a rounded part of the stage. You could see the algae on the side.”). This testimony is corroborated, in a general way, by the deposition of Weeks foreman McMahon, who stated that “moss” on the surface of the float stages was an “ongoing problem,” and that workers had complained to him that the stages were too slippery as a result. McMahon Dep., Hansen Aff. Ex. 7, at 42-48. Based on this evidence, a jury could conclude that the float stage on which Wallace was working was in a “slippery condition.”
A jury could also find that this condition proximately caused Wallace’s fall. See Mack v. Altmans Stage Lighting Co.,
On the other hand, viewing the evidence in the light most favorable to Amtrak and Weeks, the Court cannot conclude as a matter of law that a slippery surface was a substantial factor behind Wallace’s fall. In particular, the fact that Wallace’s own testimony fails to mention that he slipped could be a basis for questioning Monach’s recollection. Therefore, Wallace’s motion for summary judgment on his subsection (d) claim is also denied.
However, the Court grants Amtrak’s and Weeks’s motions for summary judgment with respect to Wallace’s claim under subsection (e)(2), because that subsection is inapplicable where the “plaintiffs fall was not caused by a tripping hazard.” Farrell v. Blue Circle Cement, Inc.,
4. Labor Law Section 240(1)
Labor Law Section 240(1) states, in relevant part:
All contractors and owners and their agents ... in the erection, demolition, repairing, altering, painting, cleaning or pointing of a building or structure shall furnish or erect, or cause to be furnished or erected for the performance of such labor, scaffolding, hoists, stays, ladders, slings, hangers, blocks, pulleys, braces, irons, ropes, and other devices which shall be so constructed, placed and operated as to give proper protection to a person so employed.
Read literally, this statute would afford broad protection against all manner of workplace risks. However, because liability under Section 240(1) is strict — in that “contractors and owners are liable under the statute whether or not they supervise or control the work” and “the plaintiffs own negligence does not furnish a defense,” Cahill v. Triborough Bridge & Tunnel Auth.,
The first question that the Court must resolve is whether, as a matter of law, Wallace faced a risk covered by the statute. Amtrak initially argues that Section 240(1) does not apply because the float stage where Wallace fell was not being used in the performance of his work; instead, it was being used only as a “walkway” for Wallace and his co-workers to get from the barge to the piles where they would install the rebar cage. Amtrak. (Wallace) Br. at 11. New York courts have held that Section 240(1) does not apply to areas used as “passageway[s],” and not “as a ladder, scaffold, hoist or other safety device for the benefit of the injured plaintiff in his work.” Donohue v. CJAM Assoc., LLC,
Dooley v. Peerless Importers, Inc.,
Amtrak’s and Weeks’s herculean efforts to distinguish Dooley fail. First, they argue that Dooley's, finding of an elevation differential turned on the fact that after the platform floated from beneath the plaintiffs feet, he hung from the bulkhead, about one to two and a half feet above the water’s surface. Weeks (Wallace) Opp. at 19; Amtrak (Wallace) Opp. at 8-9. But that argument finds no support in the Second Department’s opinion, which held that the relevant elevation differential lay between the floating platform, which was “at or near the surface of a creek,” and “the bottom of the creek.” Dooley,
Amtrak and Weeks also point out that the plaintiff in Dooley fell about eight feet, while in this case, based on the tides at the time of Wallace’s accident, the float stage was at most four and a half feet above the bottom of the water. Weeks (Wallace) Opp. at 19; see also Amtrak (Wallace) Opp. at 7 (“plaintiff averred that he was unable to identify how far he fell”). However, the distance that Wallace fell is irrelevant. It is true that in assessing whether a plaintiff is subject to an elevation-related risk, the distance from the level of his work to a lower level may bear on whether the kind of protective device listed in the statute is required. See Rocovich,
Moreover, New York courts often impose liability under Section 240(1) when a plaintiff working on an elevated platform is injured as a result of falling from that platform, even though he does not fall to the ground. In these cases, the distance that the plaintiff falls is necessarily limited, as he is able to arrest his fall. Nonetheless, Section 240(1) has been held to apply as a matter of law. See, e.g., Adams v. North-Star Constr. Co.,
Nor is the fact that Wallace was wearing a life vest a meaningful basis for distinguishing Dooley, in which the plaintiff was not wearing one. Weeks suggests that because of his flotation device, Wallace never faced a risk of hitting the river bottom. Weeks (Wallace) Reply at 15. However, the flotation device does not affect whether the float stage was “called for” because of the differential between the bottom of the water and the level of Wallace’s work — it clearly was. As a result, the float stage was required to offer adequate protection from all falls, not just those in which a worker risked hitting bottom; as noted above, injuries suffered
Nor is there sufficient evidence to conclude that the float stage on which Wallace was working offered him adequate protection against that risk. Amtrak and Weeks emphasize that in Dooley, the court’s finding of liability was based on the absence of guardrails or tie lines, and Wallace denied that such protections could or should have been installed on the Weeks float stages. Amtrak (Wallace) Br. at 12; Amtrak 3/1 56.1 ¶ 22; Weeks 3/1 56.1 ¶25. Wallace also testified that he had all the safety gear necessary to do his job. Weeks 3/1 56.1 ¶ 24. True, Wallace admitted that extra planking on the side of the float stage would not have prevented his fall, nor would a lifeline, or a harness, or a safety net. Wallace Dep., Joseph 3/1 Decl. Ex. B, at 259-63. But he never deviated from his testimony that the float stages were unsafe because they had pieces missing, and “were literally falling apart under your feet, a lot of them.” Id. at 60. This claim is corroborated by Monach, who testified at his deposition that Weeks employees often had to repair parts of the float stages “where the wood was not quite flush and it was awkward to walk on.” Monach Dep., Hansen Aff. Ex. 8, at 43. That testimony is undisputed. See Amtrak 3/22 56.1 Resp. ¶ 30; Weeks 3/22 56.1 Resp. ¶ 30. Moreover, the conditions at the edge of the float stage were particularly relevant to Wallace’s risk of falling, because carrying the rebar cage along the float stage involved treading very close to the edge.
Weeks and Amtrak dispute that the float stage was defective, see Amtrak 3/22 56.1 Resp. ¶¶ 28, 31; Weeks 3/22 56.1 Resp. ¶ 28, because Iapicco, Weeks’s field engineer, testified that the missing piece on the edge of the float stage was “nothing abnormal” and part of general wear and tear. Iapicco Dep., Joseph 3/22 Opp. Decl. Ex. C, at 32. But whether the float stage’s condition was normal or abnormal is irrelevant to the legal question of whether the float stage — in whatever condition it was in — adequately protected Wallace against the risk of falling. Amtrak and Weeks point to no evidence suggesting that the float stage was in a condition to provide such protection, given that pieces were missing from its edges. Cf. Siago,
Indeed, there can be no dispute that the float stage gave Wallace inadequate pro-
Furthermore, because a careful review of the record has revealed nothing to contradict Wallace’s testimony that he fell because he stepped on a “carved out” or “missing” piece of the float stage,
B. Amtrak’s Claims Against Weeks
Amtrak’s third-party complaint against Weeks contains claims for breach of contract, contractual indemnity, implied indemnity, and failure to procure insurance. Third-Party Compl. at 7-12. Amtrak moves for summary judgment on its breach of contract and contractual indemnity claims, and does not address its implied indemnity claim in any detail in its briefing. Moreover, it has agreed to withdraw its claim for failure to purchase insurance. Amtrak (Weeks) Opp. at 16-17. Therefore, the Court focuses on Amtrak’s breach of contract and contractual indemnity claims. In its motion, Amtrak also asks the Court to declare that Weeks must reimburse Amtrak for costs and attorneys’ fees already incurred with respect to the defense of Wallace’s claims, and to pay such costs going forward. Amtrak (Weeks) Mot. at 2. Weeks moves for summary judgment on all of Amtrak’s claims.
1. Choice of Law
A threshold question is what law the Court should apply in interpreting
Weeks’s arguments that the Court should apply New York law are meritless. First, Amtrak did not waive its argument that D.C. law should govern. Weeks asserts that a choice of law clause is unenforceable if the party invoking the clause fails to include choice of law allegations in its pleadings. Weeks (Amtrak) Br. at 9. But it does not cite any cases for that proposition. Instead, it relies on Wultz v. Bank of China Ltd.,
Weeks also argues that Amtrak has not demonstrated any relevant conflict between New York law and D.C. law, and that in the absence of such a conflict, New York law should govern. Weeks (Amtrak) Reply at 3. But the choice of law issue in this case matters because of Weeks’s own contention that Amtrak cannot be indemnified against claims arising from Amtrak’s own negligence — a rule that is enforced in New York, but not in the District of Columbia. Compare, e.g., N.Y. Gen. Oblig. Law § 5-322.1.1 (a construction contract “purporting to indemnify or hold harmless the promisee against liability for damage arising out of bodily injury to persons or damage to property contributed to, caused by or resulting from the negligence of the promisee ... is against public policy and is void and unenforceable”), with N.P.P. Contractors, Inc. v. John Canning & Co.,
Finally, Weeks argues that the Court should employ New York’s “center of gravity” approach and consider a range of factors in its choice of law analysis. Weeks (Amtrak) Reply at 4. But in the case that Weeks cites, there was no choice of law provision in the contract at issue. See Mark Andrew of Palm Beaches, Ltd. v. GMAC Commercial Mortg. Corp., 265
In a diversity case, in the absence of definitive guidance, a federal court must “do its best to guess how the state court of last resort would decide the issue. Where the high court has not spoken, the best indicators of how it would decide are often the decisions of lower state courts.” In re Brooklyn Navy Yard Asbestos Litig.,
2. Breach of Contract Claims
Amtrak and Weeks cross-move for summary judgment on Amtrak’s claim that Weeks breached its contractual obligations “to defend, indemnify and hold harmless” Amtrak for Wallace’s claims. Amtrak (Weeks) Br. at 1; Weeks (Amtrak) Br. at 10.
In the District of Columbia, “[t]o prevail on a claim of breach of contract, a party must establish (1) a valid contract between the parties; (2) an obligation or duty arising out of the contract; (3) a breach of that duty; and (4) damages caused by breach.” Tsintolas Realty Co. v. Mendez,
Amtrak suggests that Weeks’s duty to defend and indemnify it against Wallace’s claims is unitary, in the sense that Weeks’s agreeing to defend Amtrak without simultaneously acknowledging its indemnification obligation constituted a breach of the Construction Contract. Amtrak (Weeks) Br. at 16-17; Amtrak (Weeks) Reply at 4; Amtrak (Weeks) Opp. at 9-10. However, under well-established law, a party’s duty to defend is distinct from its duty to indemnify, see Salus Corp. v. Cont’l Cas. Co.,
Given this distinction between Weeks’s duty to defend and its duty to indemnify, the Court concludes that Weeks did not breach its duty to defend. Amtrak wrote to Weeks on September 13, 2011, notifying it of Wallace’s lawsuit. Weeks immediately engaged BVGK to handle the matter, and BVGK wrote to Amtrak, stating that it had been instructed by Weeks to represent Amtrak. Amtrak, acting through Liberty and RCS, then declined Weeks’s offer of a defense in light of uncertainty regarding Weeks’s position on indemnification. See Amtrak 8/14 56.1 Resp. ¶¶ 12-25. Indeed, Amtrak never actually argues that, but for Weeks’s reservation of rights with respect to its indemnification obligation, Weeks’s offer of a defense was insufficient in any respect. Accordingly, Amtrak’s claim that Weeks breached a contractual duty to defend it against Wallace’s lawsuit cannot succeed, and the Court grants summary judgment to Weeks on that claim.
The Court also grants summary judgment to Weeks on Amtrak’s claim that Weeks breached its contractual indemnification obligation. Generally, under D.C. law, “a claim for indemnification does not accrue until the party seeking indemnification is held liable and makes a payment.” Casanova v. Marathon Corp.,
At core, Amtrak’s argument amounts to a claim that Weeks’s reservation of rights was baseless, because D.C. law, which expressly governed the Construction Contract, does not recognize the public policy ground on which Weeks thought it might not ultimately be liable. This claim arguably resembles a tort claim for bad-faith denial of indemnity. Cf. Washington v.
3. Indemnification Claims
a. This Issue Is Not Premature
Again, Weeks argues that it cannot be held liable for indemnification on summary judgment because its duty to indemnify does not arise until Amtrak has been adjudged liable to Wallace and makes a payment. Weeks (Amtrak) Opp. at 14. A similar argument was recently rejected in Cevasco v. National Railroad Passenger Corp.,
New York’s exception to the ordinary rule against pre-payment indemnification claims results from its procedural rule governing third-party practice, which provides that “a defendant may proceed against a person not a party who is or may be liable to that defendant for all or part of the plaintiffs claim against that defendant.” N.Y. C.P.L.R. § 1007 (emphasis added). Under New York case law, “[t]he words ‘is or may be liable’ have been generally construed to allow suit where the third-party plaintiffs cause of action would only mature when he was shown to be liable to the plaintiff,” as with claims for indemnification. Krause v. Am. Guar. & Liab. Ins. Co.,
In this case, however, the Court must look to the federal rule governing third-party practice. Federal Rule
Amtrak confuses the issue somewhat by citing several decisions on the suitability of declaratory relief where the indemnitor is sued directly, not as a third party. See Amtrak (Weeks) Reply at 5-6 (citing Convergent Wealth Advisors LLC v. Lydian Holding Co., No. 12 Civ. 1199(SAS),
b. Wallace’s Claims Are Covered
As a matter of law, Wallace’s claims fit within the language of the Construction Contract’s indemnification provision. See generally Cevasco,
Indeed, Weeks does not dispute that the plain language of the contract’s indemnification provision applies to Wallace’s claims. Instead, it argues that Amtrak may not be indemnified for its own negligence. Weeks (Amtrak) Opp. at 15-17. Even if Amtrak’s negligence were an issue in any of Wallace’s surviving claims, Weeks’s argument would fail. Under D.C. law, one contracting party may indemnify another for harm resulting from the latter’s negligence, as long as the parties’ intention to do so is clearly expressed. N.P.P. Contractors, Inc.,
c. Insurers Do Not Pay Before Indemnitors
Weeks argues that before Amtrak may recover from it under the Construction
In addition to requiring Weeks to broadly indemnify Amtrak against losses arising from the bridge project, the Construction Contract obligated Weeks to purchase two kinds of insurance: a general liability insurance policy, under which Weeks would be the insured, and an RPL Policy, under which Amtrak would be the insured. The former policy was required to include coverage for indemnification payments that Weeks was called upon to make under the Construction Contract. The effect of these unambiguous provisions was to ensure that any claims brought against Amtrak and covered by the contract’s indemnification clause would ultimately be paid by Weeks’s liability insurer, in order to avoid the possibility that Weeks itself would have to shoulder, and perhaps be unable to pay, indemnification claims against it. Confirming that Weeks’s indemnification obligation takes priority over Liberty’s coverage under the RPL Policy, the premium for the ACE policy that covers Weeks’s contractual obligation was significantly higher ($675,000) than the premium for the RPL Policy ($47,021). Compare Betancourt 8/14 Opp. Decl. Ex. A, at 1, with Joseph 7/25 Decl. Ex. A Item 9. See generally Lumbermens Mut. Cas. Co. v. Allstate Ins. Co.,
Consistent with this reading, the Construction Contract specifically and unambiguously provides that Weeks’s indemnification obligation “shall not be limited by the existence of any insurance policy procured or maintained by [Weeks].” Joseph 7/25 Deck Ex. A § 68.3. Although Weeks is not an insured under the RPL Policy, that policy was nonetheless “procured” by Weeks, given that the Construction Contract required Weeks to purchase the policy, which Weeks did. As a result, adopting Weeks’s position — that the RPL Policy limits its indemnification obligation — would render the Construction Contract’s “shall not be limited” provision meaningless. See Abdelrhman v. Ackerman,
In similar cases, courts have consistently held that an indemnitor (and thus its insurer) bears full responsibility for covered indemnification payments, even if the indemnitee has other insurance covering the same loss. See, e.g., St. Paul Fire & Marine Ins. Co. v. Am. Int’l Spec. Lines Ins. Co.,
Weeks’s primary argument to the contrary is that the RPL Policy contains an “other insurance” provision, which states that the coverage provided by Liberty is “[pjrimary insurance,” and that Liberty “will not seek contribution from any other insurance available to [Amtrak] except if the other insurance is provided by a contractor other than the designated contractor for the same operation and ‘job location.’ ” Weeks (Amtrak) Opp. at 18 (quoting Joseph 7/25 Decl. Ex. H § IV.A.6.a). In Weeks’s view, this provision suggests that Liberty cannot seek contribution from insurance provided by Weeks — which was the designated contractor — before Liberty must pay under the RPL Policy. That would mean that the RPL Policy was intended to pay before Weeks’s indemnification obligation under the Construction Contract was triggered. Weeks also argues that the other insurance provision in its CGL Policy is consistent with this reading, because it states that the policy’s coverage is “in excess of’ other insurance “available to [Weeks].” Weeks (Amtrak) Opp. at 18 (quoting Betancourt 8/14 Opp. Decl. Ex. A ¶ 14).
Weeks’s argument is not persuasive. As a textual matter, the fact that the RPL Policy is primary insurance does not mean that Liberty must pay before a contractual indemnitor. Nor is that distinction affected by the fact that Weeks’s obligation is ultimately covered by ACE, as required by the Construction Contract, and that Liberty, as subrogee for Amtrak, likely would recover from ACE for payments that
Weeks’s “other insurance” argument is also contrary to the case law. Although Continental Casualty Co. did not explicitly discuss the railroad protective policy’s or liability policy’s other insurance clauses, Weeks (Amtrak) Opp. at 18,
The authority that Weeks relies on is not to the contrary. See Weeks (Amtrak) Opp. at 17-18. Two of the cases that it cites actually recognize that an indemni-tee’s insurer may, as subrogee, recover from the indemnitor for losses covered by a contractual indemnification provision. See Bovis Lend Lease LMB, Inc. v. Great Am. Ins. Co.,
d. Amtrak Retains Its Right to Indemnification
Weeks also argues that its duty to indemnify Amtrak against Wallace’s claims was extinguished when Amtrak transferred control of its defense from counsel chosen by Weeks to counsel chosen by Liberty. Weeks (Amtrak) Br. at 11-12; Weeks (Amtrak) Opp. at 21. The Court disagrees. Although an indemnitee’s insistence on its own counsel may, under certain circumstances, extinguish an indemnitor’s duty to fund the indemnitee’s defense, Weeks’s contention that “an indemnitee’s refusal to accept a defense from the indemnitor extinguishes the indemnitor’s duty to indemnify” is entirely unfounded. Weeks (Amtrak) Opp. at 12 (emphasis added).
The authorities that Weeks cites offer it no support. First, Weeks asserts that “an indemnitee is not entitled to control its own defense and have the indemnitor reimburse the indemnitee for its attorney’s fees and costs after the indemnitor accepted the indemnitee’s tender of defense pursuant to an agreement.” Weeks (Amtrak) Opp. at 12 (quoting C.J.S. Indemnity § 24) (internal quotation marks omitted). But that rule concerns the allocation of defense costs, not the effectiveness of the indemnity obligation. See Williams v. Rexworks, Inc.,
e. Weeks’s Affirmative Defenses Fail
Weeks claims that several affirmative defenses preclude Amtrak’s indemnification claims against it. None has merit.
First, Weeks claims that Amtrak waived its right to a defense and indemni
Second, Weeks argues that Amtrak should be estopped from seeking a defense and indemnification from Weeks. Weeks (Amtrak) Opp. at 21. Under D.C. law, an equitable estoppel defense requires that the defendant, acting in good faith, detrimentally relied on affirmative acts of the plaintiff, and that the equities strongly favor the defendant. See, e.g., Goto v. Dist. of Columbia Bd. of Zoning Adjustment,
Third, Weeks contends that Amtrak “elected its remedy” when it rejected Weeks’s defense for the defense provided by Liberty. Weeks (Amtrak) Opp. at 23. Generally, a plaintiff may not recover twice for the same wrong, see Am. Serv. Ctr. v. Helton,
Finally, Weeks argues that Amtrak failed to mitigate its damages because if it had accepted Weeks’s defense, Weeks would not have been relieved of its indemnification obligation. Weeks (Amtrak) Opp. at 23-24. This argument is incoherent: to explain why Weeks’s indemnity obligation should be extinguished, it assumes that that obligation has been extinguished. In fact, the damages in question would be those arising from Wallace’s claims (which Amtrak argues Weeks should cover), but the Court has already determined that there is no evidence in the record suggesting that Amtrak’s defense strategy has exposed Weeks to a materially greater risk of loss from those claims.
* * *
To summarize, the Court concludes that, as a matter of law, Wallace’s claims
4. Defense Costs
Having established Weeks’s obligation to indemnify Amtrak against Wallace’s claims, the Court must address whether Weeks is also required to pay for the costs of Amtrak’s defense. Weeks does not contest that the Construction Contract gave it a duty to defend Amtrak from Wallace’s claims when they were filed. The duty to defend is broader than the duty to indemnify, meaning that “if the allegations of a plaintiffs complaint may bring the claim within the coverage of the defendant’s policy, the insurance company must honor its duty to defend, even if ultimately relieved of any duty to indemnify.” Salus Corp.,
Most jurisdictions recognize that when a conflict arises between the interests of an insurer and its insured, the insurer’s duty to defend requires it to pay for counsel of the insured’s choosing. See, e.g., Klein v. Salama,
Basic principles of insurance law lead to this conclusion. An insurer’s reservation of rights is an important step in determining how an insured will undertake its defense of a claim. It is well established in the District of Columbia (and elsewhere) that an insurer who accepts an insured’s tender of a defense without reserving the right to contest its coverage under the insurance policy is estopped from later denying coverage. See Cincinnati Ins. Co. v. All Plumbing, Inc.,
On October 8, 2011, after Amtrak, in consultation with Liberty and RCS, had replaced BVGK with LCBF, Weeks explicitly reserved its right to contest liability for damages arising from Wallace’s claims. Specifically, Langan stated his belief that if Wallace “can prove that his alleged injuries were the result of the sole negligence or gross misconduct of Amtrak,” then Weeks’s contractual duty to indemnify Amtrak for his claims could be challenged on public policy grounds. Joseph 7/25 Decl. Ex. G. This statement reflected a clear preference, from Weeks’s perspective, for Amtrak to be held liable for negligence or gross misconduct, and not on the basis of some other theory. And whether Amtrak was negligent or not would be determined in the proceedings in which BVGK would be representing Amtrak. Even courts that have been careful to inquire into the nature of an asserted conflict of interest before transforming an insurer’s duty to defend into a duty to pay for the insured’s chosen counsel have concluded that a conflict exists on similar facts. See, e.g., Exec. Risk Indem.,
Before moving on, the Court concedes that it is unclear whether the District of Columbia would import the law governing insurers’ duty to defend into the non-insurance indemnity context, as the above analysis assumes. Many jurisdictions do, see Shaughnessy v. KC Rainbow Dev. Co., No. 09-51 ACK-LEK,
In any event, the Court concludes that any difference between insurance and indemnity is irrelevant to the contours of Weeks’s obligation to pay for Amtrak’s defense, for several reasons. First, read literally, the Construction Contract’s definition of “Claims” explicitly includes “costs of defense and attorneys’ fees.” Joseph 7/25 Decl. Ex. A § 68.1, at 53. Weeks has an obligation to “defend, indemnify and hold harmless” Amtrak against “any ... Claims.” Id. (emphasis added). Therefore, were the Court to hold that Amtrak’s decision to reassert control over its defense relieved Weeks of its contractual duty to “defend,” Weeks nonetheless would retain its obligation to reimburse Amtrak for defense costs and attorneys’ fees under its separate obligation to “indemnify.” Perhaps that obligation would not arise until Amtrak has paid out those expenses, whereas in the insurance context, the duty to defend arises upon a claim’s being filed. But that is all that Amtrak wants at this point: having already obtained its own counsel, it asks the Court to hold that Weeks must pay for that counsel. Cf. Deepwater Horizon,
C. Weeks’s Claims Against Liberty
In light of the foregoing analysis, Weeks’s claims against Liberty do not require significant discussion. The parties agree that New York law governs these claims, so the Court need not undertake a choice of law inquiry. See Phila. Indem. Ins. Co. v. City of New York, No. 09 Civ. 10432(PGG),
Count I and Count II of Weeks’s fourth-party complaint allege that Liberty breached the RPL Policy. Count I alleges that Weeks and Liberty were parties to the RPL Policy, and Count II alleges, in the alternative, that Weeks was a third-party beneficiary of that policy. See Amend. Answer & Fourth-Party Compl. ¶¶ 88-99. For either claim to succeed, Liberty must have breached the RPL Policy. Weeks’s theory is that Liberty breached the policy’s other insurance provision by failing to provide “primary” coverage to Amtrak and instead seeking recovery from Weeks under the Construction Contract’s indemnification clause. Weeks (Liberty) Opp. at 6, 11. However, as discussed above, the fact that Liberty contracted to provide primary insurance does not negate the priority of Weeks’s indemnification obligation over Liberty’s coverage. And to the extent that Liberty ultimately seeks recovery from ACE, Weeks’s insurer, the RPL Policy precludes Liberty from seeking contribution only from other insurance that is “available to” Amtrak, and the ACE policy is available to Weeks, not Amtrak. Therefore, Liberty’s efforts to hold Weeks to its indemnification obligations do not constitute a breach of the RPL Policy. Because Weeks cannot
The Court also grants summary judgment to Liberty on Weeks’s claim of bad faith, contained in Count III of Weeks’s fourth-party complaint. “As in all contracts, implicit in contracts of insurance is a covenant of good faith and fair dealing, such that ‘a reasonable insured would understand that the insurer promises to investigate in good faith and pay covered claims.’ ” Bi-Economy Mkt., Inc. v. Harleysville Ins. Co. of N.Y.,
First, Weeks claims that Liberty engaged in “unreasonable, intentional and/or malicious excessive delay and/or the improper denial of coverage of Wallace’s claims.” Weeks (Liberty) Opp. at 22. But it points to no evidence of delay, and Liberty has not denied coverage of Wallace’s claims.
Second, Weeks contends that Liberty has asserted frivolous defenses, including the argument that its coverage under the RPL Policy is not primary insurance. Weeks (Liberty) Opp. at 22. But Liberty has not argued that its coverage is not primary; it has simply asserted (correctly) that Weeks, as contractual indemnitor, is nonetheless obliged to pay first.
Third, Weeks claims that the law firm that Liberty appointed to represent Amtrak has a conflict of interest, as evidenced by the fact that it has not yet sued Liberty or ACE. Id. But Amtrak has no reason to sue Liberty, given that Liberty has not denied responsibility for Wallace’s claims, and any failure to sue ACE is understandable, on the assumption that Weeks itself will be able to recover from ACE in order to fund any award against it.
Finally, Weeks argues that Liberty wrested control of Amtrak’s defense away from it, thereby prejudicing Weeks’s interests. But that was Amtrak’s choice, which it was entitled to make. Weeks contends that it has a right to control Amtrak’s defense because it must pay for it, Weeks (Liberty) Opp. at 22; see Fed. Ins. Co. v. N. Am. Specialty Ins. Co.,
In its motion for summary judgment, Weeks asks the Court for a declaratory judgment that “Liberty is entitled to recover from Weeks all payments it has made in defending Amtrak.” Liberty Mot. at 2; Liberty Br. at 2. Typically, a party seeking a declaratory judgment requests such relief by asserting a declaratory judgment count in its pleading, which Liberty has not done, The Declaratory Judgment Act provides that “any court of the United States, upon the filing of an appropriate pleading, may declare the rights and other legal relations of any interested party seeking such declaration, whether or not further relief is or could be sought.” 28 U.S.C. § 2201(a) (emphasis added). Federal Rule of Civil Procedure 57 provides that “[t]he procedure for obtaining a declaratory judgment ... shall be in accordance with these rules.” “[TJaken together, these provisions require the filing of a complaint to commence a declaratory judgment action. In appropriate circumstances, declaratory judgment may be sought by way of counterclaim or cross-claim.” Moore v. State Farm, Mut. Auto. Ins. Co., No. 03-2390,
Nonetheless, the Court will conclude with three observations. First, having granted summary judgment to Amtrak on its claims against Weeks with respect to both indemnity and attorneys’ fees and costs, the contours of Weeks’s obligations to Amtrak under the indemnification provision of the Construction Contract have been determined. Second, the language in the RPL Policy’s transfer of rights provision speaks for itself: “[i]f the insured has rights to recover all or part of any payment we have made under this policy, those rights are transferred to us.” Joseph 7/25 Decl. Ex. E § IV.A.8. Third, however, Liberty’s request that Weeks reimburse it for “all payments it has made in defending Amtrak” is arguably broader than Amtrak’s request for attorneys’ fees and costs incurred “with respect to the defense of Wallace’s claims.” Amtrak (Weeks) Mot. at 2. The Court emphasizes that it is not reaching any conclusion at this stage regarding fees incurred in litigating Amtrak’s third-party claims against Weeks.
IY. CONCLUSION
For the foregoing reasons, the Court grants Wallace’s motion for summary judgment as to liability on his claim under New York Labor Law Section 240(1), and denies the parties’ motions with respect to Wallace’s slipping claim under Labor Law Section 241(6) because genuine issues of material fact persist. However, the Court grants summary judgment to Amtrak on Wallace’s claims under the common law and Labor Law Section 200, and on Wal
Additionally, Amtrak’s motion for summary judgment on its claims against Weeks is granted in part and denied in part: summary judgment is granted on its claims for contractual indemnification and defense costs, and denied with respect to its breaeh-of-contract and failure-to-purchase-insuranee claims. Conversely, the portion of Weeks’s motion involving Amtrak’s breach-of-contract and failure-to-purchase-insurance claims is granted, and the portion of its motion involving Amtrak’s indemnification and cost-of-defense claims is denied.
Finally, Weeks’s motion for summary judgment against Liberty is denied in its entirety, and Liberty’s motion with respect to Weeks’s claims against it is granted except insofar as that motion requests declaratory relief against Weeks.
Pursuant to Rule 5 of this Court’s Individual Practices in Civil Cases, it is hereby ordered that the parties shall submit their Joint Pretrial Report and any other required materials by April 4, 2014. Counsel for all parties are instructed to appear for a scheduling conference on April 10, 2014, at 2:00 PM, in Courtroom 906 of the Thur-good Marshall U.S. Courthouse, 40 Foley Square, New York, New York. The parties must participate in at least one hour of good-faith settlement discussions prior to the conference.
SO ORDERED.
Notes
. Because Amtrak and Weeks are involved in multiple sets of cross-motions, the Court will distinguish between their evidentiary materials by specifying the date on which the cited document was filed and between their briefs by indicating the party against which the brief is directed. For example, "Joseph 3/1 Decl.” refers to the Declaration of Ronald E. Joseph filed on March 1, 2013, Dkt. No. 52, and “Amtrak (Wallace) Br.” refers to Amtrak's opening brief in support of its motion for summary judgment against Wallace, Dkt. No. 53.
. The Construction Contract comprises several parts, including an initial nine-page section describing the Pelham Bay Bridge project and the work Weeks would perform, and a longer form contract titled "General Provisions.” Citations to Exhibit A of the July 25, 2013 Joseph Declaration refer to the corresponding sections of the General Provisions.
. Pipia was decided after the parties' motions were fully briefed, and the parties have submitted letters addressing it. Amtrak claims that Pipia is inapposite because, unlike Wallace, the plaintiff there submitted expert testimony describing "numerous devices that could have provided additional protection against falling” from the float stage.
. Weeks places such importance on the distance that Wallace fell that it has moved to strike portions of Wallace’s affidavit stating that the water was six to ten feet deep, and that he fell between six and ten feet in total. Dkt. No. 63; see Wallace Aff. ¶ 8. As explained in the text, this dispute is irrelevant to the Court’s resolution of Wallace’s Section 240(1) claim, so the Court need not decide whether the relevant portions of Wallace’s affidavit should be stricken under the so-called "sham affidavit” rule. See Trans-Orient Marine Corp. v. Star Trading & Marine,
. The parties dispute whether the area in which Wallace could walk was six or seven inches wide, see Wallace 56.1 ¶ 13, or instead closer to twelve inches wide, see Amtrak 3/22 56.1 Resp. ¶ 13. This dispute is irrelevant: even with twelve inches of space, Wallace would have been perilously close to the edge.
. Although Amtrak and Weeks frequently use the word "misstep” as if to suggest that the accident was Wallace’s fault, that has no bearing on Amtrak’s liability under Section 240(1). A plaintiff’s own actions defeat liability only if they are the "sole proximate cause of the accident,” Cahill,
. As noted above, this testimony is not inconsistent with evidence that Wallace slipped. For example, the surface that he stepped on, where a piece of the float stage was missing, could have been slippery.
. To the extent that the law governing insurance differs from the law governing non-insurance indemnity contracts, those differences provide even more reason to define Weeks’s duties narrowly. As noted later in this opinion, jurisdictions that recognize a difference between insurance and non-insurance indemnity — and it is unclear whether the District of Columbia is such a jurisdiction— do so on the ground that indemnity contracts are construed strictly, while insurance contracts are construed so as to resolve ambiguities in favor of the insured. See, e.g., In re Oil Spill by the Oil Rig Deepwater Horizon,
. "Federal impleader cannot ... operate to enlarge the third-party plaintiffs right to recovery beyond that available under the controlling substantive law." Andrulonis, 26 F.3d at 1233; accord Smith v. Whitmore,
. Which state’s law governs this question is somewhat unclear from the parties’ briefs. As noted above, D.C. law governs the Construction Contract, and thus the question of
. Weeks also argues that Continental Casualty Co. applied Minnesota law, not New York law. Weeks (Amtrak) Opp. at 19. However, New York law is in accord that an insurer who covers an indemnitor’s contractual indemnification obligation does not share that liability with the indemnitee’s liability insurer. See Indemnity Ins. Co.,
. Similarly, L.B. Kaye Associates, Ltd. v. Libov,
. Although the parties do not address this issue in any detail, it is unclear how much of a conflict BVGK actually faced, given that Weeks’s ground for reserving its rights — that
. Liberty did send Amtrak a letter reserving its rights. See Muilenberg Decl. Ex. J. However, the letter simply contains general language to the effect that a “coverage review” was required, and that the RPL Policy obliged Amtrak to abide by certain reporting requirements. Id. There was no indication that Liberty might plan to steer the litigation in a preferred direction. That was not true of Weeks’s reservation of rights, which implied an incentive to demonstrate negligence on Amtrak’s part and thereby avoid indemnification.