Indiana Rejects Subrogation Waiver Argument Where Contractor Performed Work At The Request Of Another

In U.S. Automatic Sprinkler Corp. v. Erie Insurance Exchange, 21A-CT-580, 2022 WL 906142 (Ind. Ct. App. Mar. 29, 2022), the Indiana Court of Appeals held that a subrogation waiver in an insured's maintenance contract did not bar recovery by the plaintiff insurer for a water loss at a leased space because the defendant contractor's work was not performed under the contract with the insured. The water loss incident arose from work that the contractor had performed at the request of the leased space's owner/landlord, albeit on the insured's fire sprinkler system.

At the center of the case was an automatic fire sprinkler that U.S. Automatic Sprinkler Corporation ("USA Sprinkler") installed for the benefit of Sycamore Springs Surgery Center, L.L.C. ("Surgery Center") to protect the space it leased from the owner/landlord. Surgery Center was responsible for the maintenance of the system and entered into a maintenance contract with USA Sprinkler that contained a