Security and the Law: Gross Negligence Not Shielded From Liability
An interesting case in the state of New York involved the distinction between an exculpatory clause and a waiver of subrogation.
An insurance company made payments in excess of $2 million to its insured, resulting from a fire loss. As the subrogee of the insured, the insurance company brought an action for subrogation against the contractor, subcontractor and suppliers, alleging gross negligence, breach of contract and strict liability.