Lexington Insurance Company v. Entrex Communication Services, Inc.

Summary

The Supreme Court of Nebraska held that a contractual waiver of subrogation was enforceable against claims alleging gross negligence and did not violate public policy. The court further held that the waiver applied to all insured damages, including damage to both the contractual Work and non-Work property. The court affirmed summary judgment for Entrex Communication Services, Inc.

Holdings

1. A contractual waiver of subrogation is effective to bar claims alleging gross negligence when the losses are covered by property insurance; enforcing such a waiver does not violate public policy.
2. The waiver of subrogation applies to all losses covered by a property insurance policy obtained pursuant to the contract or otherwise applicable to the Work, including losses to both the Work and non-Work property when the policy covers both.

Questions Presented

1. Whether a contractual waiver of subrogation is enforceable against claims alleging gross negligence without violating public policy.
2. Whether the waiver of subrogation applies only to insured damage to the contractual Work or also applies to insured damage to non-Work property.

Disposition

affirmed