Kenney Shelton Liptak Nowak LLP :: Week of January 22, 2007
Week of January 22, 2007 Print

 

Firm News 1/22/2007

 

Scope of Additional Insured Coverage/Landlord-Tenant.  First Department reverses that part of a judgment ordering an insurer to defend a property owner as an additional insured in an underlying bodily injury action caused by a falling ceiling.  Court finds tenant/named insured procured additional insurance coverage for owner in compliance with the lease, but finds owner is not an additional insured in connection with the underlying action.  Court finds that under the policy (not quoted), owner would be an additional insured only for vicarious liability of named insured, or if the injuries arose out of tenant’s use, occupancy, or repair, or if accident occurred in a common area and tenant were at fault.  Court observes that underlying complaint contained no allegations of negligence against tenant and that there was no evidence of such negligence.  Court also finds owner failed to raise an issue of fact regarding whether falling ceiling related to tenant’s occupancy or repair of the premises.  Prestige Properties and Development Co., Inc. v. Montefiore Medical Center, 2007 WL 64020 (1st Dept. January 11, 2007).

 

UM Coverage/Intentional Acts Exclusion.  In a coverage action initiated by a UM insurer, First Department affirms denial of summary judgment motion by insurer of tortfeasor that disclaimed coverage based on intentional acts exclusion.  Tortfeasor drove over an occupied camping tent, causing underlying plaintiff’s injuries.  Tortfeasor pled guilty to attempted reckless assault, and in his plea colloquy admitted that his motivation was to retaliate against plaintiff’s friends who allegedly assaulted one of the tortfeasor’s friends.  Court nevertheless finds a fact issue regarding whether tortfeasor intended the harm for purposes of the intentional acts exclusion based on tortfeasor’s statement in his plea colloquy that he did not know anyone was in the tent.  New York Central Mut. Fire Ins. Co. v. Wood, 2007 WL 63766 (3d Dept. January 11, 2007).

 

MVAIC Benefits.  First Department affirms denial of petition to sue MVAIC where petitioner failed to provide necessary information when making her notice of intention to make a claim, specifically, that she was a “qualified person.”  Petitioner, who listed a South Carolina address, failed to prove New York residency.  Willingham v. Huston, 2007 WL 64127 (1st Dept. January 11, 2007).

 

Uninsured Motorist Arbitration.  First Department reverses the denial of insurer’s petition for permanent stay in arbitration sought by an employee of a repair shop injured in a vehicle he was returning to the customer.  The agreement between the customer and the repair shop required the shop to maintain automobile liability insurance and to name customer as an additional insured.  Customer argued that, pursuant to the agreement, shop’s insurer was required to provide customer with uninsured motorist benefits under its policy with the repair shop.  Where the record was unclear whether insurer issued a policy naming the customer as an additional insured, First Department grants a temporary stay of the arbitration and remands the case for a framed issue hearing on the issue.  ELRAC, Inc. v. Brooks, 2007 WL 64132 (1st Dept. January 11, 2007).

 

Contractual Indemnification / Common-Law Indemnification.  In a case commenced by building owner alleging structural damage caused by, inter alia, a subcontractor working on an adjacent building and the architect supervising the subcontractor, the architect moved for summary judgment dismissing the complaint or granting its claim for contractual indemnification from subcontractor or its claim for common-law indemnification against subcontractor and other co-defendants.  Court finds that where Administrative Code § 27-195 dictated architect’s involvement and required that the subcontractor provide written notice of the commencement of work requiring the architect’s controlled inspection, architect was entitled to summary judgment dismissing owner’s claims against it and dismissing subcontractor’s cross-claims against it for indemnification where no proof showed that architect was provided with proper notice of the subcontractor’s activities.  Court dismisses as moot architect’s claim for common-law indemnification.  RCD Building, L.L.C. v. Park Slope Condominiums, L.L.C., 2007 WL 64266 (Sup. Ct. Kings Co. January 10, 2007).

 

First-Party No-Fault.  In an action for first-party no-fault benefits commenced by a health care provider in connection with claims arising from four different accidents, Appellate Term modifies trial court’s order denying insurer’s motion to sever and granting health care provider’s motion for summary judgment.  Appellate Term holds that where insurer alleged that health care provider was fraudulently incorporated and insurer’s opposition papers raised issues as to who really operated and controlled the health care provider’s facility, the trial court should have denied health care provider’s motion without prejudice to renewal upon completion of discovery.  Midwood Acupuncture, P.C. v. State Farm Mutual Automobile Ins. Co., 2007 WL 93176 (Sup. Ct. App. Term January 8, 2007).

 

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