District Court Grants Leave to File Third-Party Complaint

Posted on June 1, 2006 by Liza H. Sherman
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Federal Insurance Company v. Lighthouse Construction, Inc., 230 F.R.D. 387 (D. Del. 2005).

A property insurer brought a subrogation action against a building contractor to recover for loss caused by a roof collapse. The contractor sought leave to filed third-party complaint against erection contractor. Insurer also sought leave to filed a claim against it.

The District Court held:

(1) the contractor was entitled to add third-party claim of contractual indemnification against erection contractor;

(2) the insurer could not assert claim against third-party defendant after expiration of two-year statute of limitations; and

(3) insurer's amendment of complaint to add erection contractor would not relate back to subrogation action against building contractor.

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