Late Notice -
Untimely Disclaimer
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Under
Pre-2008 Policy, Insured's Year-Long Delayed Notice Constituted Late Notice, and
Insurer's Year-Long Delay in Disclaiming (Following Prompt Reservation of
Rights) Found Timely Under N.Y. Ins. Law § 3420.
U.S. Underwriters Ins. Co. v. Allstate Ins. Co.,
2013 U.S. Dist. LEXIS 86367 (E.D.N.Y. June 19, 2013)
The
Eastern District of New York ruled that a policyholder's failure to notify its
insurer of a claim was untimely, and the insurer's disclaimer was timely, as a
matter of law. The insurer brought this declaratory judgment action against its
insured and various contractors who allegedly caused extensive damaged through
negligent excavation or construction work. The insurer denied coverage based on
the insured's failure to provide timely notice and various exclusions. In
response, the policyholder argued that its notice was timely, and that the
insurer should be estopped from denying coverage due to its year-long delay in
issuing a disclaimer.
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Duty to Defend - Advertising
Injury |
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In "Advertising Injury" Dispute, Court Finds Insurer
Breached Duty to Defend With Respect to Underlying Trademark Infringement
Suit
CGS Indus. v. Charter Oak Fire Ins. Co., 2013 U.S. App.
LEXIS 11700 (2d Cir. N.Y. June 11, 2013)
The Second
Circuit found that while an insurer wrongfully disclaimed its coverage
obligation in connection with an underlying trademark infringement suit, it was
not liable to provide indemnification with respect to settlement costs under the
"advertising injury" part of a liability policy.
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Property
Coverage - Fraud Exclusion
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Pursuant
to Fraud Exclusion Language, One Policyholder's Fraudulent Conduct Voided
All-Risk Policy as to All Named and Additional
Insureds.
Mon Chong Long Trading Corp. v. Travelers Excess &
Surplus Lines Co., 2013 U.S. Dist. LEXIS 92096 (S.D.N.Y. June 27,
2013)
The Southern District of New York
determined that a property insurer properly declared its all-risk policy "void"
pursuant to the exclusion for "concealment, misrepresentation, or fraud" in
connection with claims for property damage stemming from Hurricane
Irene.
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Independent Contractors
Exclusion |
Courts Denies Summary
Judgment as Question of Fact Remained as to Injured Party's Status as an
Employee of Independent Contractor or Subcontractor.
Century Sur. Ins. Co. v All in One Roofing, LLC, 2013 N.Y. Misc. LEXIS 2788
(N.Y. Sup. Ct. July 8, 2013)
A New York County trial court ruled that an insurer was
not entitled to summary judgment where it could not show an injured worker was
the "employee" of an independent contractor as required to invoke the
independent contractors
exclusion.
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Occurrence
/ Asbestos Litigation
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Bankruptcy Court's Decision to
Preclude Coverage on Late Notice Theory Collaterally Estops Relitigation of the
issue.
In re Integrity Ins. Company, 2013
N.J. LEXIS 588 (June 19, 2013)
New Jersey
Supreme Court reverses Appellate Division, finding that the principle of
collateral estoppel applied to earlier decision precluding coverage on late notice
theory. Although Illinois law guides Court's reasoning, the opinion
offers direct guidance on level of delay required to support a late notice
finding, as collateral estoppel cannot apply if the Court finds its application
in a given case unfair.
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Insurer Not
Allowed to Pursue Subrogation Against Policyholder's Landlord When Lease
Agreement Required Parties to Look Only to Own Insurers for Recovery of
Loss
Lig Ins.
Co. v. Bonanno Real Estate Group II, L.P., 2013 N.J. Super. Unpub.
LEXIS 1660 (App. Div.
July 3, 2013)
Appellate
Division upholds trial court's refusal to allow insurer
to pursue subrogation
claim, as tenant policyholder's lease agreement with landlord
required that landlord
and tenant accept their own losses and obtain insurance containing a clause
forbidding subrogation.
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