Following up last week’s blog post: on Monday, August 29th the United States Court of Appeals for the Second Circuit issued a summary order affirming the decision in First Mercury Ins. Co. v. Shawmut Woodworking & Supply, Inc., No. 3:12-cv-01096 (D. Conn. Sept. 23, 2014)
The district court held First Mercury Insurance had to defend the construction manager from negligence actions against them relating to a deadly construction accident at Yale University, even though the construction manager was not in direct contractual privity with First Mercury’s insured. The coverage was owed under an ISO form Additional Insured endorsement provided coverage to when First Mercury’s named insured “agreed in writing in a contract or agreement” to name the party as an additional insured.
This is a win for owners, general contractors, and construction managers who often rely on provisions in downstream contracts to secure additional insured coverage.