June 4, 2025
ShareKelley Kronenberg Secures Risk Transfer in Multi-Million Dollar Construction Injury Case
Kelley Kronenberg Partner Jesse Siegel secured a significant risk transfer victory for property owner and general contractor clients in Kings County, New York, successfully obtaining tender acceptance without reservation in a construction injury case with potential exposure of up to $5 million.
The case involved a construction worker who alleged he was injured while working on the fifth floor balcony of a building under construction. The plaintiff claimed he was directed to strip decking from the sixth floor, requiring him to climb over existing rebar to access the work area. During this process, he allegedly tripped and fell, sustaining serious injuries including a displaced fracture of the right patella and injuries to multiple extremities, head, neck, and back.
The plaintiff filed suit under New York Labor Law Sections 200, 240, and 241(6), seeking damages for pain and suffering plus past and future lost earnings totaling $2,625,000.00. Given the severity of the alleged injuries and the nature of Labor Law claims in New York, the case presented substantial exposure for the property owner and general contractor.
Jesse identified a strategic opportunity for complete risk transfer through careful analysis of the relationships between the parties. Drawing on established New York precedent including McDermott v. City of New York and Drzewinski v. Atlantic Scaffold & Ladder Co., he crafted a comprehensive tender demand demonstrating that existing obligations required another party to assume responsibility for the claim.
Jesse’s persuasive reasoning successfully convinced the target party’s carrier to accept the tender and their additional insured obligations without reservation. This outcome completely shifted the defense and indemnity obligations away from our clients, providing coverage of up to $5 million while eliminating their direct exposure.
This victory highlights the importance of thorough insurance policy and contract analysis in construction cases and demonstrates how strategic risk transfer can provide complete protection for clients facing substantial Labor Law exposure in New York.