The New York Court of Appeals granted leave to appeal last week in a matter involving the requirements for contractual indemnification between a defendant/third-party plaintiff and an injured worker's employer under Workers' Compensation Law Section 11 (see Court's entry here). The Court will review the Appellate Division, Third Department's decision in which it rejected the defendant/third-party plaintiff's contract for indemnification with the injured worker's employer because it did not expressly or unambiguously state that the subcontractor (insurer's employer) required to indemnify the general contractor for the injuries of the subcontractor's employees incurred within the scope of their employment (see prior post about the decision).
The Court's decision will affect a large number of contracts within the Labor Law context, and if it upholds the Third Department's decision, a new form contract for contractual indemnification will need to be drafted.
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