Skip to Main Content
Services Talent Knowledge
Site Search
Menu

Alert

Our attorneys stay on top of changes in legislation, agency regulations, case law, and industry trends—then craft timely legal alerts to keep clients up to date on legal developments important to their business.

January 10, 2009

HVAC Service Company Not Obligated To Ensure Proper System Operation In Case Of Fire.

NY Schools Insurance Reciprocal v. Honeywell, 867 NY Supp. 2d 456

This is a subrogation case in which a school district's property insurance company sought to recover $13 million from Honeywell. The insurance company alleged that smoke was mistakenly circulated throughout the building during a fire due to Honeywell's failure to evaluate and upgrade the HVAC system.

Honeywell moved to have the case dismissed based on the plain language in its contract. The trial court granted Honeywell's motion, which was affirmed on appeal.

The court held that per the contract, Honeywell was only required to perform maintenance and inspection neither of which had anything to do with the fire alarm system. Nor did the contract require Honeywell to check how the HVAC system would work in the event of a fire.

The court also referred to the specific provision in the contract which stated:

Honeywell shall not be obligated to provide replacement equipment, components and/or parts that represent a significant betterment or capital improvement to customer's system.

Based on these provisions in the contract Honeywell was able to have the suit against it dismissed at the very beginning of the litigation.

The moral: For those doubters among us, contract language does matter and courts will enforce contracts if clearly written.

Subscribe

Click here to sign up for alerts, blog posts, and firm news.

Featured Media

Alerts

Changes to Delaware Corporate Law Aim to Preserve Its Leadership Position

Alerts

Non-Judicial Collateral Remedies, Part 1 – Collection and Enforcement Rights

Alerts

Recent US Supreme Court Decision Will Spur ERISA Litigation

Alerts

Proposed Endangered Species Act Change Seeks to Redefine "Harm"

Alerts

Natural Gas Bans in New York State Take Shape: Exemptions and Lawsuits Under Scrutiny

Alerts

Here We Go Again: Second Circuit Makes Additional Certification Attempt Regarding the New York Foreclosure Abuse Prevention Act

This site uses cookies to give you the best experience possible on our site and in some cases direct advertisements to you based upon your use of our site.

By clicking [I agree], you are agreeing to our use of cookies. For information on what cookies we use and how to manage our use of cookies, please visit our Privacy Statement.

I AgreeOpt-Out