Firm obtains summary judgment for carrier in first-impression ruling on ‘independent contractor’ exclusion
BOSTON (Oct. 25, 2010) – Andrew C. Coulam recently persuaded a Massachusetts Superior Court judge to enforce an insurance policy’s independent contractor exclusion against a restaurant owner seeking coverage for an electrician’s claim he was injured while working at the restaurant during renovations.
The commercial general liability policy excluded coverage for injuries to independent contractors or their employees. The judge in a case of apparent first impression in Massachusetts rejected the claim of the restaurant owner that the electrician was a subcontractor, and instead determined that the electrician was on the job site as an independent contractor.
“The judge’s ruling clarifies the interpretation of the independent contractor exclusion,” said Coulam. “Even when there’s no such exclusion, this decision provides guidance on how to determine the distinction between a subcontractor and an independent contractor, especially when the policy doesn’t define those terms. This could be an issue in any construction context.”
The judge found that the restaurant owner hired a project manager to oversee the project, but did not enter into a contract with a general contractor for the renovation. Employees of the restaurant did some of the work on site, while for other tasks the restaurant owner hired independent contractors to complete the work, including an electrician.
The judge noted that the restaurant owner left blank on its insurance policy application questions related to subcontractors.
The court emphasized that while every subcontractor is an independent contractor, not every independent contractor acts as a subcontractor. A key distinction, according to the judge, is that a subcontractor enters into an express or implied contract with someone else that has already contracted to perform certain tasks.
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Taylor Duane is one of New England’s leading civil litigation law firms with offices in Boston and Providence. Its experienced trial attorneys appear regularly in the federal and state courts of Massachusetts, Rhode Island and Connecticut. The Providence Business News has named the firm as one of Rhode Island’s Best Places to Work for three consecutive years (2008-2010).
