Header graphic for print
New York Commercial Division Case Compendium A Searchable Database of Court Decisions Issued by New York’s Commercial Division

Category Archives: Insurance

Subscribe to Insurance RSS Feed

Law Firm’s Failure to File Notice of Appeal in Coverage Action Not Malpractice Where Insured’s Underlying Losses Were Not Covered under Policy

Posted in Declaratory Judgment, Healthcare, Insurance, Legal, Malpractice, Oing, Jeffrey K., Unjust Enrichment

In a decision dated December 30, 2015, the Appellate Division, First Department affirmed an order from the New York County Commercial Division granting defendant-law firm’s motion to dismiss plaintiff-health care provider’s malpractice action.

Motion to Dismiss for Failure to Join Necessary Party Denied, Defendant Failed to Establish Non-Party Beyond the Court’s Jurisdiction

Posted in Arbitration, Insurance, Motion to Dismiss, Suffolk, Whelan, Thomas

In a December 4, 2014 Commercial Division decision by Justice Whelan, the court denied the defendant’s motion to dismiss for plaintiff’s alleged failure to join a necessary party, and to compel arbitration in the alternative. The plaintiff alleged the defendant was an alter ego of a non-party company for whom the plaintiff contractually agreed to… Continue Reading

Major League Soccer’s Insurance Coverage Claim Survives Insurer’s Motion to Dismiss

Posted in Arbitration, Breach of Contract, CPLR 3211, Estoppel, Insurance, Insurance Coverage, Motion to Dismiss, New York, Sherwood, O. Peter, Summary Judgment, Unjust Enrichment

In a May 20, 2014 Commercial Division decision by Justice Sherwood, the court denied the defendant’s pre-answer motion to dismiss the complaint brought pursuant to CPLR 3211(a)(7). This insurance coverage case, concerning a “ForeFront Portfolio” insurance policy (“Policy”) issued by the defendant Federal Insurance Company (“FIC”) to the plaintiff, Major League Soccer, L.L.C. (“MLS”), arose… Continue Reading

Court Adopts “Time on the Risk” Allocation Formula in Insurance Coverage Dispute related to Environmental Clean-up of Former Manufactured Gas Plants in Hempstead and Rockaway Park

Posted in Estoppel, Indemnification, Insurance, Insurance Coverage, New York, Scarpulla, Saliann, Summary Judgment

In an October 17, 2014 Commercial Division decision by Justice Scarpulla, the court granted in part, the defendant’s motion for partial summary judgment. The plaintiff (“Keyspan”) commenced the action seeking a declaration that the defendant Century Indemnity Company (“Century) was obligated to indemnify it for costs of an environmental clean-up of two former manufactured gas… Continue Reading

Court Grants Preliminary Injunction to Enforce Non-Compete in Sale of Insurance Agency

Posted in Albany, Estoppel, Insurance, Non-compete, Platkin, Richard, Preliminary Injunction

In an, October 2, 2014 Commercial Division decision by Justice Platkin, the court granted the plaintiff’s motion for a preliminary injunction, which sought to enforce a non-competition agreement (the “Agreement”) given by the defendant in connection with the asset purchase agreement pursuant to which the defendant sold his Allstate insurance agency to the plaintiff.

Plaintiff RMBS Insurer Cannot Establish it Relied on Manipulated Due Diligence Report, Defeated on Summary Judgment

Posted in Fraud, Guaranty, Insurance, Scheinkman, Alan D., Summary Judgment, Westchester

In an May 6, 2014 Commercial Division decision by Justice Scheinkman, the Court granted the defendant underwriter’s motion for summary judgment and dismissed plaintiff insurer’s complaint, without prejudice to a motion by the insurer to interpose an amended complaint. MBIA alleged one cause of action: that JP Morgan (formerly Bear Stearns) fraudulently induced MBIA to… Continue Reading

Administrative Orders Not “Final Adjudications” for Purposes of Dishonest Acts Exclusion in Bear Stearns Professional Liability Insurance Policy

Posted in Class Action, Declaratory Judgment, Fraud, Insurance, Insurance Coverage, New York, Ramos, Charles E., Summary Judgment

In a February 28, 2014 Commercial Division decision by Justice Ramos, the court granted the plaintiffs’ motion for partial summary judgment and denied the defendants’ motion for partial summary judgment.  The plaintiffs commenced this insurance coverage action seeking a declaratory judgment that its insurers, the defendants, were required to indemnify them against certain claims. The… Continue Reading

Plaintiff Cannot Rely on a Consumer Protection Law to Defend Conduct that the Law Was Designed to Guard Against

Posted in Breach of Contract, General Business Law 349, Insurance, Kapnick, Barbara R., Misrepresentation, New York, Summary Judgment

In a July 2, 2013, decision by Justice Kapnick, the court granted defendant-insurance brokers’ motion for summary judgment dismissing a consumer-protection claim by plaintiff, trustee of a stranger-owned life insurance or “STOLI” trust. In short, a STOLI arrangement is one in which an investor or group of investors seeks to profit from a life-insurance policy… Continue Reading

Surety Bound By Settlement Entered Into Between Insured and Subcontractor: TLH Constr. Corp. v Arkay Constr., Inc.

Posted in Construction, Demarest, Carolyn E., Insurance, Kings, Summary Judgment

In an April 24, 2013 decision by Justice Demarest, the court granted a subcontractor’s motion to restore a case to the calendar and enter judgment against a surety based on an unfulfilled settlement.  The litigation arose from a construction project for the New York City Department of Sanitation.  Plaintiff was a subcontractor on the project. … Continue Reading

Insurance Broker Potentially Liable for Failing to Place Policy, Insurers Not Liable Because No Policy In Place: The IDW Group, LLC v Levine Insurance Risk Management Services, Inc. et al.

Posted in Breach of Contract, Breach of Fiduciary Duty, Insurance, Kornreich, Shirley Werner, Negligence, New York, Summary Judgment

In an April 12, 2013 decision by Justice Kornreich, the Court granted partial summary judgment against an insurance broker on claims for breach of contract and negligence.  The court also granted summary judgment dismissing all claims against an insurer and insurance wholesaler and granted the insurer summary judgment on its cross-claims to recover defense costs… Continue Reading

Mortgage Backed Security Insurer’s Relief Limited to Compelling Repurchase of Loans: Assured Guar. Corp. v EMC Mtge, LLC et al.

Posted in Banking, Breach of Contract, Financial services, Guaranty, Indemnification, Insurance, New York, Ramos, Charles E., Tortious Interference With Contract

In an April 4, 2013 decision by Justice Ramos, the Court dismissed plaintiff’s breach of contract claim to the extent that it sought damages beyond those allowed under its contract but allowed its tortious interference with a contract claim to move forward.  The litigation arose from the mortgage backed security meltdown.  Plaintiff, Assured, provided financial… Continue Reading

Title Insurance Company’s Motion to Dismiss Real Estate Developer’s Indemnity Claim Dismissed: JBGR LLC v Chicago Title Ins. Co.

Posted in CPLR 3211, Documentary Evidence, Indemnification, Insurance, Motion to Dismiss, Real estate, Schmidt, David I., Suffolk

In a January 17, 2013 decision by Justice Emerson, the court denied the defendant’s motion to dismiss.  The plaintiffs were members of a real estate development entity that purchased a residential community in 2006 with plans for further development. The plaintiffs were subsequently found liable for their default under the promissory note and individual guarantees… Continue Reading

Unauthorized Access Required for Coverage Under Computer System Fraud Insurance: Universal American Corp. v National Union Fire Insurance Co of Pittsburgh, PA

Posted in Fraud, Insurance, Insurance Coverage, New York, Sherwood, O. Peter, Summary Judgment

In a January 7, 2013 decision by Justice Sherwood, the court declared that there was no insurance coverage for fraudulent billing information inserted into a health insurance carrier’s computer system which resulted in the payment of fraudulent insurance claims.  Plaintiff provides Medicare health insurance plans.  Under the various plans health care providers submit claims for… Continue Reading

“Art Authentication” Did Not Constitute “Professional Services” for Purposes of D&O Insurance Policy: Andy Warhol Foundation for the Visual Arts v Philadelphia Indem. Ins. Co.

Posted in CPLR 3212, Indemnification, Insurance, New York, Sherwood, O. Peter, Summary Judgment

In a December 6, 2012 decision by Justice Sherwood, the court denied the Defendant Philadelphia Indemnity Insurance Company’s (PIIC) motion for summary judgment. The plaintiffs (the “Warhol Plaintiffs”), non-profits that review artwork to determine if it was created by Andy Warhol, purchased various insurance policies from PIIC. Subsequently, two actions were commenced against the Warhol… Continue Reading

Unambiguous Residency Requirement Results in No Duty to Defend: Tower Ins. Co. of N.Y. v Dademadi

Posted in Declaratory Judgment, Friedman, JSC, Marcy S., Insurance, Insurance Coverage, New York, Summary Judgment

In a September 13, 2012 decision by Justice Friedman, the court granted the plaintiff insurance company’s motion for summary judgment seeking a declaratory judgment that it had no duty to defend and indemnify defendant Dademadi in a personal injury action against her by defendant Stewart who claims he was injured when he fell on a… Continue Reading

Plain Language of Excess D&O Policy Required Underlying Insurers to Pay Limits on Their Own Policies Before Attachment: Forest Labs., Inc. v Arch Ins. Co.

Posted in Ambiguity, Breach of Contract, Contract Interpretation, CPLR 3211, Documentary Evidence, Failure to State a Claim, Fraud, Insurance, Motion to Dismiss, New York, Schweitzer, Melvin L.

In a September 12, 2012, decision by Justice Schweitzer, the court granted defendant’s motion to dismiss plaintiff’s complaint.  Plaintiff-insured, after settling a securities fraud case for $65 million, sought to recover “unpaid extra claims and defense costs” from defendant-excess insurer, which provided the last $10 million layer of a $70 million tower of directors and… Continue Reading

Court Denies Motions to Reargue and to Compel Arbitration: National Union Fire Co. of Pittsburgh v Source One Staffing

Posted in Arbitration, Bransten, Eileen, CPLR 2221, CPLR 7503, Insurance, Motion to Compel Arbitration, New York

In a July 25, 2012 decision by Justice Bransten, the court denied the petitioner’s (“National Union”) motions for reargument and to compel arbitration. The respondent (“Source One”) claimed that National Union, its worker’s compensation insurance provider, failed to reasonably adjust claims under its Policy and made improper demands for increased collateral under the associated Payment… Continue Reading

Summary Judgment Granted Dismissing Untimely Claims based upon Untimely Deaths: Kelly v Legacy Benefits Corp.

Posted in Breach of Fiduciary Duty, CPLR 213, CPLR 214, Discovery, Fraud, GBL 349, GBL 350, Insurance, Kapnick, Barbara R., New York, Statute of Limitations, Summary Judgment

In a March 12, 2012 decision by Justice Kapnick, the court granted the defendants’ motions for summary judgment dismissing the plaintiff’s complaint. The case arose out of the plaintiff’s 1998 investment of $100,000 that was me through the defendant Legacy. The plaintiff invested the money into two viatical settlements, contracts for the sale of a… Continue Reading

Bank Did Not Negligently Misrepresent or Fraudulently Induce Borrower to Pay-off Mortgage: 50-01 Realty LLC v. Brooklyn Federal Savings Bank et al.

Posted in Breach of Contract, CPLR 3211, Fraud, Fraudulent Inducement, Insurance, Kings, Misrepresentation, Motion to Dismiss, Negligence, Negligent Misrepresentation, Oral Modification, Schmidt, David I.

In a March 28, 2012 decision by Justice Schmidt the court dismissed a complaint against a bank sounding in breach of contract, fraudulent inducement and negligence misrepresentation. The borrower originally had one loan from the bank secured by two different properties. The loan was later refinanced and split in two: a $6 million loan was secured by… Continue Reading

Injunction Denied Because Plaintiff Failed to Show Misappropriation of Confidential Information: World Wide Specialty Programs, Inc. v. Lexington Insurance Company et al.

Posted in Breach of Contract, Insurance, Preliminary Injunction

In a March 13, 2012 decision by Justice Whelan, the court denied plaintiff’s motion for injunctive relief seeking to enjoin defendants from, among other things, utilizing plaintiff’s allegedly confidential information and earning any fees from the use of this confidential information. Plaintiff was a “program administrator” for certain insurance policies sold by subsidiaries of Chartis Inc…. Continue Reading

Court Determines New York Proper Venue for Corporate Raiding Lawsuit Against California Insurance Broker: Aon Risk Servs., Northeast v Cusack

Posted in Breach of Contract, Construction, CPLR 3211, Fried, Bernard J., Insurance, Motion to Dismiss, New York

In a February 28, 2012, decision by Justice Fried, the court denied in part and granted in part defendant-employee’s motion to dismiss under CPLR 3211. The court also denied defendant-employer’s motion to dismiss under CPLR 327. Plaintiff Aon sued its former employee and his new employer for breach of contract and various business torts, including misappropriation of… Continue Reading

Unsworn Redacted “Witness” Statement Insufficient to Support Summary Judgment: Castlepoint Insurance Co. v. Santana

Posted in Declaratory Judgment, Fraudulent Inducement, Insurance, Insurance Coverage, New York, Oing, Jeffrey K., Summary Judgment

In a February 29, 2012 decision by Justice Oing the court denied dueling cross-motions, each seeking a declaration as to whether or not an insurer was obligated to provide coverage for a slip and fall accident. One of the defendants slipped and fell on ice leaving the house where his daughter rented the second floor apartment. He… Continue Reading