Acosta v. 22-12 Jackson Owner LLC — First Department Grants Labor Law § 240(1) Liability and Clarifies Indemnification Rights in Multi-Party Construction Action

Case
Acosta v. 22-12 Jackson Owner LLC
Court
Appellate Division, First Department
Date Decided
2026-06-30
Docket No.
Index No. 23090/19, 43586/19 | Appeal No. 6982 | Case No. 2025-03411
Judge(s)
Manzanet-Daniels, J.P., Moulton, Shulman, Rosado, O’Neill Levy, JJ.
Topics
Scaffold Law, Labor Law § 240(1), personal injury, construction, indemnification
Source
Full opinion on CourtListener

Background

Junior Carty Acosta, a laborer employed by subcontractor Quality Facility Solutions Corp. (QFS), was injured at a Bronx construction site while disposing of debris. A sheetrock delivery had been brought to the site on a Spyder forklift operated by an employee of Feldman Lumber-US LBM, LLC, a materials supplier. As Acosta worked nearby, the sheetrock slid off the forklift and fell on him. He brought suit against the property owner (22-12 Jackson Owner LLC), an additional property party (Britt Realty LLC), the general contractor (Vector Building Corp.), and the supplier (Feldman Lumber), alleging violations of Labor Law §§ 240(1) and 200 and common-law negligence. The defendants cross-claimed against each other for contractual and common-law indemnification.

Labor Law § 240(1)—known as the Scaffold Law—imposes absolute liability on owners and general contractors for elevation-related injuries to workers where inadequate safety devices are provided. Labor Law § 200 codifies the common-law duty of property owners and general contractors to provide a safe workplace. Supreme Court (Socorro, J.) granted Acosta partial relief on summary judgment, finding § 240(1) liability against the owner, realty, and contractor defendants, but denied § 240(1) liability against Feldman Lumber and denied various indemnification cross-claims. Multiple parties appealed.

The Court’s Holding

The First Department substantially modified Supreme Court’s order. On the Labor Law § 240(1) claim, the court affirmed that 22-12 Jackson, Britt Realty, and Vector qualified as proper Labor Law defendants and are liable to Acosta under the statute. The falling sheetrock from an unsecured forklift load constituted an elevation-related hazard triggering § 240(1)’s absolute liability regime, which imposes the burden of providing adequate safety devices on owners and general contractors, not on subcontractors or materials suppliers. The claim against Feldman Lumber as a materials supplier was properly denied, as Feldman is neither an owner nor a general contractor subject to the statute.

However, the court reversed Supreme Court on Acosta’s common-law negligence claim against Feldman Lumber. Acosta presented expert testimony from an experienced forklift operator who opined that the accident could only have occurred if Feldman Lumber’s employee failed to fully extend the forklift forks—a fundamental operational error. Feldman Lumber’s opposition expert failed entirely to address this specific opinion. Without a meaningful response on the operative theory of negligence, no triable issue of fact existed, and the court granted summary judgment to Acosta on common-law negligence against Feldman Lumber.

On the indemnification cross-claims, the court conditionally granted 22-12 Jackson and Britt Realty’s contractual indemnification cross-claims against both Vector and QFS, subject to a finding that the accident arose from their work—as the contractual language required. The court also granted 22-12 Jackson’s common-law indemnification cross-claim against Feldman Lumber: as the party whose employee’s negligence caused the accident, Feldman is the appropriate party to bear ultimate liability as between itself and the upstream owner defendants who are vicariously liable under the Scaffold Law.

Key Takeaways

  • Labor Law § 240(1) does not apply to materials suppliers who neither own the property nor function as general contractors—their liability for a falling-object accident must be pursued through common-law negligence.
  • When a plaintiff’s expert identifies a specific mechanical failure (here, failure to fully extend forklift forks) as the only plausible cause of an accident, a defendant’s expert who ignores that specific theory cannot defeat summary judgment—there must be a substantive response to the operative causation opinion.
  • Contractual indemnification cross-claims in construction cases may be conditionally granted at the summary judgment stage, with indemnity obligations maturing upon a determination at trial that the accident arose from the indemnitor’s work.
  • A materials supplier whose employee’s negligence directly causes a construction accident may be required to indemnify upstream owner and contractor defendants who face vicarious Scaffold Law liability, under a common-law indemnification theory.

Why It Matters

This decision illustrates the full complexity of a multi-party Labor Law § 240(1) case—where absolute owner/contractor liability under the Scaffold Law coexists with common-law negligence claims against parties outside the statute’s scope, and where indemnification cross-claims cascade through the entire construction chain. For owners and general contractors sued under § 240(1), the case reinforces that conditional contractual indemnification can be secured at the summary judgment stage, preserving the right to shift ultimate liability to the negligent subcontractor or supplier. For materials suppliers and delivery companies operating on New York construction sites, the decision is a warning: workers’ experts will scrutinize equipment operation, and failure to rebut a specific causation theory with expert opinion will result in summary judgment. Labor Law plaintiffs’ counsel should note the court’s willingness to grant both § 240(1) and common-law negligence summary judgment in the same action when the evidentiary record supports it.

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