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Insurance Coverage Blog

Commentary on Insurance Coverage Litigation in New York
Posted: July 9, 2018

“One cannot be a construction contractor without a construction contract”: Professional Liability Exclusion Precludes Coverage Under CGL Policy

On June 27, 2018, Judge Oetken of the SDNY issued a decision in Liberty Ins. Corp. v. WSP USA, Inc., Case No. 17-cv-4398(JPO), holding that coverage under a CGL Policy was excluded by a professional liability exclusion.  The insured, WSP, was hired by the Washington State Department of Transportation to “evaluate the repair or replacement of the Alaskan Way Viaduct,...

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Posted: July 6, 2018

Additional Insured Endorsement Not Triggered Where Injuries Were Not “Proximately Caused” by Named Insured

On May 17, 2018, Justice Lebovits of the New York County Supreme Court issued a decision in Tishman Constr. Corp. of N.Y. v Scottsdale Ins. Co., 2018 NY Slip Op 30991(U), reconsidering a prior order in light of the Court of Appeals’ decision in Burlington Ins. Co. v. NYC Transit Auth., 29 N.Y.3d 313 (2017), and holding that a construction...

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Posted: July 2, 2018

Commercial Liability Policy Properly Rescinded Based on Material Misrepresentation in Insurance Application

On June 18, 2018, Justice Bannon of New York County Supreme Court issued a decision in Union Mut. Fire Ins. Co. v. 72nd Forest Hills Ass’n, 2018 NY Slip Op 31265(U), holding that an insurance carrier properly rescinded a commercial liability policy, under Insurance Law § 3105(a), based on material misrepresentations in the insurance application.  The Court also granted summary...

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Posted: June 18, 2018

Schlam Stone Partners Bradley Nash and Solomon Klein to Speak at the Winning Edge Executive Business Conference

Schlam Stone Partners Brad Nash (the editor of the Insurance Blog) and Solomon Klein (editor of the EDNY Blog) will be speaking on June 18, 2018 at the Winning Edge 2018 Executive Business Conference at Montclair State University. Law and The Entrepreneur: Legal Challenges and Opportunities on the Path to Success Solomon N. Klein and Bradley Nash — partners at...

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Posted in EDNY, Insurance
Posted: May 31, 2018

Insured Not “Indispensable Party” In Insurer’s Subrogation Action Where Joinder Would Defeat Diversity Jurisdiction

On May 25, 2018, Judge Furman of the SDNY issued a decision in American Ins. Co. v. Kartheiser, Case No. 17-CV-5545 (JMF), denying a motion to dismiss a subrogation action for failure to join the insured as a party. In American Ins. Co., an insurer brought a subrogation action in federal court, seeking to recover amounts it paid to the insured...

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Posted: May 29, 2018

Property Owner Entitled to Defense Coverage as Additional Insured Under General Contractor’s CGL Policy; Fact Issues Preclude Summary Judgment on Indemnity Coverage

On May 11, 2018, Justice Lebovits of New York County Supreme Court issued a decision in Touro College v. Arch Specialty Ins. Co., Index No. 652642/2016, holding that a property owner was entitled to defense coverage for a personal injury action as an additional insured under a general contractor’s CGL policy.  The Court ruled that the issue of indemnity coverage,...

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Posted: May 16, 2018

Injury Not Covered Occurrence under Automobile Liability and Personal Umbrella Policies Because It Was “Intentionally Caused”

On May 11, 2018, the Second Circuit issued a decision in Hough v. USAA Casualty Ins. Co., Case No. 17-1073, holding that a collision between a driver and a “flagman” at a construction site was not a covered “occurrence” under the driver’s automobile liability and umbrella policies because the injury was “intentionally caused.”  The policies contained the standard definition of...

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Posted: May 9, 2018

Court of Appeals Rules that Additional Insureds Endorsement in General Contractor’s Liability Policy Requires Contractual Privity

On March 26, 2018, the New York Court of Appeals issued a decision by Judge Wilson (Gilbane Bldg. Co./TDX Constr. Corp. v. St. Paul Fire & Mar. Ins. Co., 2018 NY Slip Op 02117), holding that an Additional Insured-By Written Contract endorsement in a general contractor’s liability policy did not provide coverage for a construction manager that had no written...

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Posted: May 2, 2018

Pollution Exclusion Did Not Relieve Insurer of Obligation to Defend Personal Injury Claims by Workers at World Trade Center Site

On April 27, 2018, Justice Marcy Friedman of the New York County Commercial Division issued a decision in National Union Fire Ins. Co. of Pittsburgh, PA v. Burling Ins. Co., 2018 NY Slip Op 30741(U), holding that a Total Pollution Exclusion did not excuse an excess liability carrier’s duty to defend personal injury lawsuits brought by clean-up workers at the...

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Posted: April 10, 2018

Indemnity Coverage for Class Action Settlement Not Affected by Covenant Not to Execute Judgment Against Insured’s Assets

On March 8, 2018, Judge Block of the EDNY issued a decision in Illinois Union Ins. Co. v. US Bus Charter & Limo Inc., Case No. 1:16-cv-06602-FB-RLM, holding that indemnification rights under a liability policy survived a class action settlement in which the insured consented to a $50 million judgment against it, subject to a covenant not to execute the...

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