Insurance Coverage Issues

• We had moved for summary judgment in a declaratory judgment action on behalf of our clients and their carriers seeking a declaration that the defendant insurer must defend and indemnify the personal injury action defendants. The court below granted our motion but only to the extent of declaring that defendant insurer Utica Mutual Insurance Company was precluded from asserting a late notice of claim defense but would be able to assert other available defenses. The Appellate Division unanimously modified the decision of the court below to now grant our clients' motion to the further extent of declaring that Utica Mutual was precluded from disclaiming on any policy exclusion. The Appellate Division held that Utica Mutual's failure to give timely notice to our clients also precludes it from disclaiming based on any policy exclusions. City of New York, et al. v. Utica Mutual Insurance Company, 2006 WL 3512997 (1st Dept., December 7, 2006).
• Shifted the risk by successfully attacking the validity of a cancellation of non-payment of premium and established the principle that a finding that a contractor breached its obligation to procure coverage for the construction manager does not collaterally estop a finding that the cancellation was invalid. Lehrer McGovern Bovis v. Public Service Mutual Ins. Co., 268 A.D.2d 388, 700 N.Y.S.2d 837 (1st Dep't 2000).
• Ramirez v. U.S. Fidelity & Guaranty Co., 133 A.D.2d 146, 519 N.Y.S.2d 144 (2^nd Dep't 1987) (upholding endorsement in a general liability policy which relieved insurer of liability policy for coverage in connection with a claim for contribution with respect to injuries suffered by employee in the course of his employment