STORY FROM: Superstorm Sandy Insurance Litigation

Inspector Owed No Extra-Contractual Duty to Owner of Hotel Damaged During Sandy, N.Y. State Judge Rules

NEW YORK — A New York state judge has dismissed an inspector from a Superstorm Sandy insurance subrogation action, finding it owed no extra-contractual duty to the owner of a hotel for its allegedly negligent inspection of a neighboring building’s façades.

On Nov. 16, Judge Paul Wooten of the New York County Supreme Court said there is no special "zone of danger" standard that would expand the inspector’s liability to the adjacent hotel owner and its insurer.

As subrogee of PNY III LLC, American Guarantee and Liability Insurance Co. is seeking damages from Axis Design Group International and ULM II ...

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