Anti-Subrogation - Not So Fast Says The Delaware Superior Court
The Delaware Superior Court recently ruled that despite the existence of an express waiver of subrogation in a condominium association’s CC&R’s, a chimney sweep could pursue a contribution claim against the unit owner where a fire started under the Delaware Uniform Contribution Among Joint Tortfeasor’s Act.
In Fireman’s Insurance Company v. Fire-Free Chimney Sweeps, Inc.,[1] the Court permitted a chimney sweep to pursue a contribution claim against the unit owner whose actions caused or contributed the fire. The chimney sweep, a defendant in the related subrogation action bought by the condominium association's insurer, filed a contribution claim against the unit owner where the fire started. The unit owner argued that he could not be directly liable to the condominium association or any of the individual unit owners pursuant to provisions in the condominium documents and his status as an additional insured under the condominium association’s policy. Therefore, he claimed that he could not be liable for contribution. However, the Court concluded that since the chimney sweep was a stranger to the contract documents, they were not a basis to restrict the chimney sweep’s right of contribution pursuant to the Uniform Contribution Among Tortfeasor’s Act. The Court noted that the proper question was not whether the chimney sweep and the unit owner were jointly and severally liable to the association and its insurer but, rather, whether they each performed some act that injured the association itself.
The decision confirms that in proper circumstances a party protected by a waiver of subrogation may still be liable for damages caused by its negligent acts via a contribution cause of action.
[1] This opinion is yet unpublished. It is identified as Delaware Civil Action No. 07C-06-287-JOH
