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Posts Categorized: Indemnification and Advancement

Posted: October 18, 2018

No Additional Insured or “Insured Contract” Coverage under CGL Policy Where Injuries Not Proximately Caused by the Named Insured

On October 5, 2018, the Fourth Department issued a decision in Pioneer Cent. Sch. Dist. v. Preferred Mut. Ins. Co., 2018 NY Slip Op 06682, holding that a school district was not entitled to coverage under a cleaning company’s CGL policy – either as an additional insured or as the named insured’s contractual indemnitee –… Read more »

Posted: October 12, 2018

Court Rejects Claims for Common Law Indemnification and Contribution

On September 25, 2018, Justice Friedman of the New York County Commercial Division issued a decision in Foremost Contr. & Bldg., LLC v. Go Cat Go, LLC, 2018 NY Slip Op. 32381(U), rejecting claims for common law indemnification and contribution, explaining: In the amended third-party complaint, the developer defendants seek common law indemnification and common… Read more »

Posted: April 9, 2018

Claim for Common Law Indemnification Must Be Based on an Agent’s Negligence, Not Breach of Contract

On March 29, 2018, Justice Kornreich of the New York County Commercial Division issued a decision in W. & M. Operating, L.L.C. v. Bakhshi, 2018 NY Slip Op. 30542(U), dismissing a claim for common law indemnification, explaining: Kay and Stiller correctly argue that neither may be held liable for common law indemnification. The principle of… Read more »

Posted: April 3, 2018

First Department Denies Motion to Stay Order Directing Excess Insurers to Advance Defense Costs

This blog previously covered Justice Sherwood’s decision in Freedom Specialty Ins. Co. v. Platinum Mgt. (NY), LLC, 2017 NY Slip Op 32728(U), which granted a preliminary injunction directing three excess D&O insurers to advance attorneys’ fees and costs for the defense of a securities fraud prosecution and a related SEC enforcement action.  (N.B. I represent one of the insureds… Read more »

Posted: January 22, 2018

Corporate Officer Failed to Make Factual Showing Required to Receive Indemnification for Defense of Criminal

On January 18, 2018, the Third Department issued a decision in Kaloyeros v. Fort Schuyler Mgt. Corp., 2018 NY Slip Op. 00373, holding that a corporate officer had failed to make the showing required to be entitled to be indemnified for his defense of criminal matter under Nevada law, explaining: A corporation is authorized to… Read more »

Posted: January 16, 2018

Court Grants Preliminary Injunction Directing Excess Insurers to Advance Defense Costs in Prosecution for Alleged Securities Fraud

On December 27, 2017, Justice Sherwood of the New York County Commercial Division issued a decision in Freedom Specialty Ins. Co. v. Platinum Mgt. (NY), LLC, 2017 NY Slip Op 32728(U), granting a preliminary injunction directing three excess D&O insurers to advance defense costs for the defense of a federal securities fraud prosecution, and related… Read more »

Posted: September 25, 2017

Veil Piercing Claim Not Incompatible with Indemnification Claim

On September 7, 2017, Justice Emerson of the Suffolk County Commercial Division issued a decision in Live Invest, Inc. v. Morgan, 2017 NY Slip Op. 27294, holding that a veil piercing claim was not incompatible with a claim for indemnification. First, the court discussed the availability of common-law indemnification: The principle of equitable indemnification, also… Read more »

Posted: September 16, 2017

Indemnification Provision Applies to Litigation Between Parties

On September 5, 2017, Justice Sherwood of the New York County Commercial Division issued a decision in Banc of America Credit Products, Inc. v. Guidance Enhanced Green Terrain, LLC, 2017 NY Slip Op. 31910(U), holding that an indemnification provision of a contract applied to litigation between the parties to the contract, explaining: In Hooper, the… Read more »

Posted: August 4, 2017

Request for Indemnification Under BCL Denied on Procedural Grounds

On July 13, 2017, Justice Emerson of the Suffolk County Commercial Division issued a decision in Federico v. Brancato, 2017 NY Slip Op 50968(U), denying a request for indemnification under the Business Corporation Law on procedural grounds. First, the court reviewed the legal framework for the indemnification of officers and directors under the BCL: Business… Read more »

Posted: November 21, 2016

Failure to Give Notice and Opportunity to Defend Fatal to Indemnification Claim

On November 17, 2016, the First Department issued a decision in Conergics Corp. v. Dearborn Mid-West Conveyor Co., 2016 NY Slip Op. 07750, holding that failure to give notice and an opportunity to defend an action was fatal to a plaintiff’s demand for indemnification. In Conergics Corp., the parties entered into a stock purchase agreement… Read more »