Gordon Rees Scully Mansukhani Partner Mark A. Trokan and Associate Krizia Rivera Skinner secured the complete dismissal of their client, a parking management contractor providing toll collection services for a regional port authority, from a lawsuit in New Jersey alleging claims of contractual indemnification and breach of contract.
The plaintiff, an employee of the contractor, was working as a temporary toll collector at a major bridge when she suffered a serious knee injury, requiring partial knee replacement with permanent hardware, after tripping over a flood barrier in a doorway within the bridge facility. Although the plaintiff sued the port authority, she was barred by the New Jersey Workers’ Compensation Act from raising direct claims against the contractor.
However, the port authority impleaded the contractor, arguing that since the plaintiff was working as an agent of the contractor at the time of the accident and allegedly failed to exercise reasonable care on the premises, the contractor was obligated to defend and indemnify the port authority under the parties’ services contract.
The GRSM team filed a motion for summary judgment, contending that the plaintiff’s injury was caused by the port authority’s flood barrier and that any comparative negligence on the part of the plaintiff should not trigger the contractor’s indemnification obligation. The contractor’s agreement did not require indemnification for all actions of its employees on the port authority’s premises but instead narrowly defined the scope of services to toll collection. The team asserted that the plaintiff’s negligence, unrelated to the contractor’s toll collection duties, did not trigger the indemnification obligation.
After extensive oral argument, the court agreed with the contractor’s position and granted the motion for summary judgment, dismissing all claims against the contractor with prejudice. GRSM’s strategic litigation approach, centered on developing a strong factual record to support a novel legal argument for dismissal, successfully eliminated the contractor’s potential seven-figure exposure.
Learn more about GRSM’s Commercial Litigation Practice Group.