An action in the United States District Court for the District of Massachusetts against an alarm company arose out of a fire that caused extensive damage to a property. The insurance company made payment to its insured in excess of $400,000 for the damages sustained from the fire according to the terms of the policy. Then, more than one year after the fire occurred, the insurance company brought an action against the alarm company for negligence, breach of contract and breach of warranty, seeking to recover the payments made to its insured.
The defendant alarm company moved for summary judgment arguing that the waiver of subrogation and a one-year contractual limitation period provision in the alarm system maintenance contract prevented the insurance company from bringing the suit.