Ostuni v. Town of Inlet
An employee of Smith Construction, LLC (plaintiff) sustained injuries after falling from a ladder during construction and initiated a lawsuit against the unnamed defendant, alleging violations of Labor Law §§ 200, 240, and 241. The defendant subsequently impleaded Smith Construction, LLC as a third-party defendant, seeking contractual indemnification. The Supreme Court denied the defendant's motion for summary judgment on its indemnification claim, concluding that the indemnification clause might violate General Obligations Law § 5-322.1 (1) if the defendant was found actively negligent. Upon appeal, the higher court reversed the Supreme Court's decision regarding indemnification, holding that the clause was valid under General Obligations Law § 5-322.1 (1) as it only required indemnification to the extent of Smith's negligence and included limiting language "To the fullest extent permitted by law." The case was remitted for an apportionment hearing to determine the extent of indemnification owed to the defendant.