Re: Confusing contract clause Jennifer Donais 07 May 2001 09:46 EST
I think what it means is that if your insurance company pays a claim that
can be tracked back to work funded by your sponsor, your insurer cannot
then sue your sponsor based on some theory of libability by your
sponsor. Normally if your insurer pays a claim to you or on your behalf
that can be traced to fault by your sponsor, your insurer would
"subrogate" (assume) your right to sue for damages. That's my
interpretation. I'd talk with my insurer or insurance manager - your
insurer must agree to this, I assume.
Ruth Tallman wrote:
> Dear Colleagues,
> I need your help with the following clause in a subcontract from a
> for-profit (Them) to Lehigh (Us). The clause is in the Insurance and
> Indemnification section. What the heck does it mean?
> "To the extent permitted by law, Contractor [Us] and its insureres(s)
> agree that subrogation rights against Buyer [Them] are hereby waived.
> Contractor hereby undertakes to reflect such waiver in any policy(ies)
> required under this Agreement."
> Your clairvoyance will be greatly appreciated!
> Ruth Tallman
> Office of Research and Sponsored Programs
> Lehigh University
> 526 Brodhead Avenue
> Bethlehem, PA 18015
> Phone: (610)758-3024
> FAX: (610)758-5994
> E-mail: email@example.com
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Jennifer Donais, CRA
Office of Grant & Contract Administration
University of Massachusetts
Amherst, MA 01003
(413) 545-5888 FAX (413) 577-1595
Instructions on how to use the RESADM-L Mailing List, including
subscription information and a web-searchable archive, are available
via our web site at http://www.hrinet.org (click on "Listserv Lists")