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Posts Categorized: Insurance

Posted: July 4, 2018

Insurance Law 3105 Does Not Relieve RMBS Insurer of Obligation to Plead All Elements of Common Law Fraud Claim

On June 27, 2018, the Court of Appeals issued a decision in Ambac Assurance Corp. v. Countrywide Home Loans, Inc., 2018 NY Slip Op. 04686, holding that Insurance Law 3105 does not relieve an RMBS insurer of the requirement to plead all the elements of common law fraud against its insured, explaining: The required elements… Read more »

Posted: May 10, 2018

Judge Garaufis denies insurer’s motion to dismiss in lawsuit involving “ordinary traffic accident with an international twist”

Posted by Solomon N. Klein, Litigation Partner District Judge Nicholas G. Garaufis denied an insurer’s motion to dismiss a lawsuit brought directly by a plaintiff against the insurer of a vehicle that belonged to the Principality of Monaco. The Court ruled that the lawsuit was proper under the Diplomatic Relations Act of 1978, despite the… Read more »

Posted: February 23, 2018

All Risk Insurance Policy Did Not Cover Loss From Returning Property to Its Rightful Owner

On February 13, 2018, the First Department issued a decision in Dae Assoc., LLC v. AXA Art Ins. Corp., 2018 NY Slip Op. 01026, holding that an “all risk” insurance policy did not cover a loss from returning property to its rightful owner, explaining: The all-risk policy at issue, which covered insured property for “all… Read more »

Posted: January 15, 2018

New York Insurance Law Does Not Preempt Claim Against Insurer for “Deceptive Practices” under Section 349 of the General Business Law

On November 8, 2017, the Second Circuit issued a decision in Nick’s Garage, Inc. v. Progressive Casualty Ins. Co., Case No. 15-1426-cv, holding that Section 2601(a) of the New York Insurance Law, which prohibits insurers from “engag[ing] in unfair claim settlement practices,” but provides no private right of action, does not preempt a claim against… Read more »

Posted: January 7, 2018

Insurance Law Section 3420 Applies Only to Policies Covering Both Insureds and Risks in New York

On November 20, 2017, the Court of Appeals issued a decision in Carlson v. American International Group, Inc., 2017 NY Slip Op. 08163, holding that Insurance Law Section 3420 applies to policies that both cover insureds and risks located in New York, explaining: Insurance Law § 3420 allows a limited cause of action on behalf… Read more »

Posted: December 18, 2017

Court Declines to “Create Insurance Coverage Where None Exists” Based on Waiver Argument

On November 14, 2017, the First Department issued a decision in Illinois Union Insurance Co. v. Grandview Palace Condominiums Association, 2017  NY Slip Op. 07957, holding that an insured was not entitled to coverage under a property insurance policy where it failed to satisfy a policy condition — namely, that the insured “maintain automatic sprinkler systems in… Read more »

Posted: November 27, 2017

No Claim Against Insurer for Breach of the Covenant of Good Faith and Fair Dealing Absent “Foreseeable Consequential Damages”

On October 19, 2017, Justice Scarpulla of the New York County Commercial Division issued a decision in Central Amusement International LLC v. Lexington Insurance Co., 2017 NY Slip Op. 32233(U), holding that an insured failed to state a claim against an insurance company for breach of the covenant of good faith and fair dealing, explaining:… Read more »

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 »