Ferluckaj v. Goldman Sachs & Co., 12 N.Y.3d 316 (2009): Lessee Liability Under Labor Law § 240(1)

Ferluckaj v. Goldman Sachs & Co. 12 N.Y.3d 316 (2009)

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A lessee is not liable under Labor Law § 240(1) for injuries to a worker unless the lessee hired the contractor or had the right to control the work being performed.

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Summary

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Ferluckaj, an employee of a cleaning company, fell from a desk while cleaning windows in a space leased by Goldman Sachs. She sued Goldman Sachs under Labor Law § 240(1). The Court of Appeals held that Goldman Sachs was not liable because it did not hire the cleaning company (ABM), the building owner Paramount did, and Goldman Sachs exercised no control over Ferluckaj’s work. The court emphasized that the relevant inquiry is whether the lessee had the *right* to control the work, not whether it actually exercised that control. Since the cleaning contract was between Paramount and ABM, Goldman Sachs owed no duty under the statute.

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Facts

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  • Goldman Sachs leased several floors at 32 Old Slip in Manhattan from Paramount Group, Inc.
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  • Paramount contracted with ABM to provide cleaning services, including window cleaning every three months.
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  • Tenants could contract directly with ABM for “special services,” but regular window cleaning was not considered a special service.
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  • Ferluckaj, an ABM employee, fell while cleaning windows on a floor Goldman Sachs was preparing to occupy.
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  • The cleaning was a