INSURANCE CO. OF N. AM. v. BORSDORFF SERV

The lease provisions whereby the landlord and tenant agreed to obtain fire insurance policies with waiver of subrogation provisions barring one party's insurer from bringing a subrogation action against the other party to recover amounts paid out under the insurance policy, is valid and enforceable, as an allocation of risk provision, and thereby precludes this subrogation claim ( see, Brentano's, Inc. v Charter Mgt. Corp., 46 A.D.2d 861; Cidis v Net Realty Holding Trust, 143 A.D.2d 720). Contrary to plaintiff's argument that the waiver of subrogation provision was one-sided, both the landlord and the tenant agreed to procure insurance for their respective risks in the event of a fire ( cf., Graphic Arts Supply v Raynor, 91 A.D.2d 827).

We also note that while SWA was not specifically mentioned in the waiver of subrogation provision of the lease, a reading of the lease, as a whole, demonstrates that it was the intent of the parties to the lease that both the landlord Arnow and the management company, SWA, be protected equally ( see, Pilsener Bottling Co. v Sunset Park Indus. Assocs., 201 A.D.2d 548).

Concur — Murphy, P.J., Rubin, Ross and Tom, JJ.