Microsoft Sues JLL Over Costs Tied to Forklift Accident
Microsoft is going after JLL years after a forklift accident seriously injured a construction worker at its Flatiron office space.
The tech giant sued the brokerage in New York County Supreme Court last week, Bisnow reported. Microsoft is alleging that JLL, which played a project manager role at 122 Fifth Avenue, isn’t covering legal costs brought on by the incident.
The partnership between JLL and Microsoft dates back to 2012, according to the lawsuit. As part of the deal, JLL serves as project manager for Microsoft spaces. It then indemnifies the tenant from lawsuits linked to buildouts, according to the suit.
At Bromley Companies’ 122 Fifth Avenue, however, JLL did not provide the promised insurance to Microsoft, according to the complaint. The tech company believes it should’ve been shielded under a $10 million liability insurance plan related to the buildout of the 150,000 square feet Microsoft leased in 2021.
That became a critical issue in 2023. Four months before Microsoft began occupying its space, a construction worker was allegedly hit by a forklift, causing permanent injuries. The worker filed a lawsuit regarding the incident in 2024, later adding Microsoft and the forklift operator to the suit.
JLL’s legal counsel claimed the forklift operator’s company was retained by building ownership and that he was working on a separate project than the buildout, according to Microsoft’s complaint. But the tenant claimed both the forklift operator and the injured worker were plying their trades on the Microsoft space.
Neither Microsoft nor JLL immediately responded to requests for comment from the publication.
Microsoft locked in its 150,000-square-foot lease at 122 Fifth Avenue in 2021, taking approximately half of the building’s office space. JLL represented the tech company in the lease negotiations.
Late last year, a joint venture between Helaba Bank and DekaBank provided a $163 million fixed-rate, interest-only loan for 122 Fifth Avenue. The financing replaced a $170 million loan from real estate finance and investment management firm PCCP.
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