Inchaustegui v. 666 5th Avenue Limited Partnership

268 A.D.2d 121, 706 N.Y.S.2d 396, 725 N.Y.S.2d 627 (2001)

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Inchaustegui v. 666 5th Avenue Limited Partnership

Supreme Court of New York, Appellate Division
268 A.D.2d 121, 706 N.Y.S.2d 396, 725 N.Y.S.2d 627 (2001)

Facts

666 5th Avenue Limited Partnership (landlord) (defendant) leased a commercial building to a tenant. That tenant issued a sublease to a subtenant, Petrofin (defendant). Under the terms of the sublease, Petrofin was required to obtain comprehensive liability insurance for the property and to name the tenant and the landlord as additional insured. Petrofin obtained an insurance policy, but failed to name the landlord as an additional insured. Upon learning of Petrofin’s failure to do so, the landlord obtained its own comprehensive liability insurance policy. Inchaustegui (plaintiff) was injured while on the premises of the commercial building. Inchaustegui brought suit in New York state court against the landlord. The landlord brought a third party claim against Petrofin alleging breach of contract because Petrofin violated the insurance requirement in the sublease. The landlord sought damages and indemnity. The trial court limited the landlord’s damages to the cost of maintaining and securing an independent insurance policy. The landlord appealed.

Rule of Law

Issue

Holding and Reasoning (Saxe, J.)

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