Lithko Contracting v. XL Insurance Amer.

Summary

The Court held that the development agreement’s waiver of subrogation protected only Amazon and Duke and did not make the subcontractors intended third-party beneficiaries. The waiver language required in the subcontracts was ambiguous as to whether Amazon waived subrogation claims against the subcontractors, requiring consideration of admissible extrinsic evidence. The Court rejected an automatic project-wide waiver based solely on a general contract’s requirement that subcontracts contain waivers and affirmed the reversal of summary judgment for the subcontractors.