JAWS: Crucial Kotecki Ramifications Continue to Lurk Beneath the Surface in Construction Site Cases

In Woods v. Amazon.com LLC and Johnson v. Amazon.com LLC, plaintiffs injured by a collapsing steel rack sued Amazon, Duke Realty, and Steel King, while Steel King sought third-party contribution from the subcontractor Lakeside Rack Installer. The Northern District of Illinois highlighted that indemnification provisions in construction contracts can, in certain circumstances, waive an employer’s liability cap under Illinois workers’ compensation law (the “Kotecki cap”), but whether a waiver applies depends on case-specific facts and the language of the agreement. Ultimately, Lakeside settled early for $861,000, while the direct defendants paid $19.1 million, illustrating how indemnity clauses, contract compliance, and Kotecki considerations significantly influence construction site litigation and settlement strategy.