On June 3, 2019, Justice Ostrager of the New York County Commercial Division issued a decision in Arici v. Poma, 2019 NY Slip Op. 31586(U), holding that public policy does not bar indemnification for prior criminal acts, explaining: Defendant argues that the SPA obligates Plaintiff to indemnify Defendant for damages associated with that tax crime... Read more »
Blogs
Posts Categorized: Indemnification and Advancement
Presentation on D&O Insurance Coverage for City Bar White Collar Crime Committee
Posted by Bradley Nash, Litigation Partner This evening at 6, I will be making a presentation to the White Collar Crime Committee of the New York City Bar on D&O Coverage for White Collar Defense Attorneys. I will be discussing insurance coverage issues in the Platinum Partners hedge fund case, which is now on trial in the Eastern... Read more »
Common Law Indemnification Claims Dismissed For Lack of Vicarious Liability or Fault
On March 1, 2019, Justice Ostrager of the New York County Commercial Division issued a decision in Stone & Broad Inc. v. Nextel of N.Y., Inc., 2019 NY Slip Op. 30527(U), dismissing common-law indemnification claims for lack of vicarious liability or fault, explaining: Nextel argues that the Second Cause of Action must be dismissed because Stone’s... Read more »
Common-Law Indemnification Unavailable to Defendant Seeking a Recovery for its Own Wrongdoing
On November 30, 2018, Justice Sherwood of the New York County Commercial division issued a decision in Board of Mgrs. of the 650 Sixth Ave. Condominium v. K-W 650 Assoc. LLC, 2018 NY Slip Op. 33050(U), holding the common-law indemnification was not available to a defendant seeking a recovery for its own wrongdoing, explaining: [C]ommon-law... Read more »
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 »
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 »
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 »
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 »
Corporate Officer Failed to Make Factual Showing Required to Receive Advancement 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 advancement for his defense of criminal matter under Nevada law, explaining: A corporation is authorized to indemnify... Read more »
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 »