In a May 26, 2011, decision by Justice Kapnick, the court granted defendant-excess insurers’ consolidated motions for summary judgment dismissing plaintiff-bank’s claims for indemnification under professional-liability and directors-and-officer’s policies sold by defendants. Applying Illinois law as required by the various policies, the court rejected plaintiff’s essential argument that, as a general rule, liability under excess policies attaches when the underlying coverage is “exhausted” and instead applied a strict reading of the language of the various policies requiring that the underlying insurers admit liability and pay the full amount of their respective liability as a precondition to any attachment of subsequent level of excess insurance.
JP Morgan Chase v Indian Harbor Ins. Co., Sup Ct, New York County, May 26, 2011, Kapnick, J., Index No. 603766/2008