Court Allows 'Soft Costs' Claim by Insurers

NEW YORK - A New York appellate court has rejected a statute of limitations defense to a subrogation claim for business interruption losses an insurer is pursuing against third-party subcontractors blamed for extensive fire damage to the AOL Time Warner building in 2003. RLI Insurance Co. v. Turner/Santa Fe, No. 109484/2004 and 109856/2005 [2009 NY Slip Op 00018] (N.Y. Sup. Ct., App. Div., 1st Dept.).

The New York Supreme Court Appellate Division, 1st Department, ruled on Jan. 6 that RLI Insurance Co. and other insurers could pursue "soft costs" in their subrogation action even though they did not make such …