PBDW Architects
A New York Supreme Court addressed an October 20th decision and order of alleged damages with remediation of the oil contamination of 2011. Several property owners claimed that their land had been contaminated by oil and that the insurer and environmental consultant were liable for any additional damages that may be caused by the remediation process.
The property owners (Plaintiffs) that suffered an oil contamination on their property had an insurance claim through State Farm Insurance. State Farm used a third party to remediate the property to the New York State Department of Environmental Conservation (“DEC”) standards. State Farm engaged Holzmacher, McLendon and Murrell, P.C. (“HMM”) as environmental consultants to oversee the work of Milro Associates, Inc. (“Milro”).
The property owners (Plaintiffs) filed an action against State Farm and HMM to recover alleged damages associated with the remediation process, claiming that they had caused additional damages to the property beyond damages that had occurred during the oil contamination. The lower court denied separate motions of State Farm and HMM for summary judgment.
The court ruled that whether State Farm demonstrated HMM as an independent contractor, State Farm was unable to prove that there was no negligence in selecting, instructing, or supervising HMM. State Farm also did not verify if the services completed by HMM were accepted by the plaintiffs. The court upheld the denial of motion for summary judgment by State Farm, the court also stated that HMM failed to demonstrate it was entitled to judgment as a matter of law.