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Posts Categorized: Insurance

Posted: October 14, 2017

Construction-Related Claims Barred by “No Damages for Delay” Clause

On September 28, 2017, Justice Knipel of the Kings County Commercial Division issued a decision in Pabco Construction Corp. v. Liberty Mutual Insurance Co., 2017 NY Slip Op. 32045(U), dismissing a claim based on a construction contract’s “no damages for delay” clause, explaining: The validity of the plaintiffs claim, as pleaded against the surety in… Read more »

Posted: October 2, 2017

Commercial General Liability Insurance Policy Did Not Cover Breach of Contract Claim

On September 27, 2017, the Second Department issued a decision in J.W. Mays, Inc. v. Liberty Mutual Insurance Co., 2017 NY Slip Op, 06639, holding that a commercial general liability policy did not afford coverage for a breach of contract claim, explaining: The general rule is that a commercial general liability insurance policy does not… Read more »

Posted: September 28, 2017

Unreasonably Lengthy and Frivolous Investigation Sufficient Basis for Breach of Implied Covenant of Good Faith and Fair Dealing

On September 15, 2017, Justice Kornreich of the New York County Commercial Division issued a decision in Max Jewelry, Inc. v. Those Certain Interested Underwriters at Lloyds London Subscribing to Certificate No. JB14/3995, 2017 NY Slip Op. 31976(U), holding than an insured’s complaint stated a claim against an insurance carrier for breach of the covenant… Read more »

Posted: August 20, 2017

Insurer Owed Pre-Judgment Interest From Date of Wrongful Disclaimer of Coverage

On August 7, 2017, Justice Ramos of the New York County Commercial Division issued a decision in J.P. Morgan Securities Inc. v Vigilant Insurance Co., 2017 NY Slip Op. 31690(U), holding that an insurer owed pre-judgment interest from the date of its wrongful disclaimer of coverage, explaining: Once the Insurers repudiated liability and Bear Stearns… Read more »

Posted: August 9, 2017

Insured Not Entitled to Indemnification Because It Settled Claims Without Insurer’s Permission

On August 8, 2017, the First Department issued a decision in Bovis Lend Lease (LMB), Inc. v. Arch Insurance Co., 2017 NY Slip Op. 06049, holding that an insured forfeited its right to indemnification by entering into a settlement without its insurer’s permission, explaining: Under paragraph 4 of the parties’ Companion Agreement, Bovis was required… Read more »

Posted: July 19, 2017

Plaintiff’s Failure to Read Policy No Bar to Claim for Failure to Obtain Proper Insurance

On July 11, 2017, Justice Knipel of the Kings County Commercial Division issued a decision in 386 3rd Ave. Partners Ltd. Partnership v. Alliance Brokerage Corp., 2017 NY Slip Op. 31484(U), holding that an insured’s failure to read a policy was not a basis for dismissing the insured’s claim against a broker for failure to… Read more »

Posted: July 9, 2017

Insurers’ Repudiation of Liability Relieves Insured of Obligation to Cooperate

On June 27, 2017, the First Department issued a decision in J.P. Morgan Securities Inc. v. Vigilant Insurance Co., 2017 NY Slip Op. 05181, holding that an insurer’s repudiation of liability relieved the insured of its obligation to cooperate with the insurer, explaining: Defendants’ unreasonable delay in dealing with plaintiffs’ claims under the insurance contracts,… Read more »

Posted: June 16, 2017

Insurer Denied Summary Judgment for Failure to Show Material Misrepresentations by Insured

On June 7, 2017, the Second Department issued a decision in Indian Harbor Insurance Co. v SP&K Construction, 2017 NY Slip Op. 04427, denying an insurer’s motion for summary judgment for failure to show material misrepresentations by the insured in applying for insurance, explaining: To establish the right to rescind an insurance policy, an insurer… Read more »

Posted: June 13, 2017

Whether Subsequent Agreement Between the Insurance Company and the Insured Affected Arbitrability of Dispute Is A Question for the Arbitrator

On June 1, 2017, the Court of Appeals issued a decision in Town of Amherst v. Granite State Insurance Company, 2017 NY Slip Op 04321, ruling that the effect of a subsequent agreement to “litigate” on the arbitrability of a dispute under an insurance agreement should be decided by the arbitrator, rather than the Court…. Read more »