New York CM Report of Recent Decisions (2010v1)
2010 Volume 1
A summary of significant recent developments in the law focusing on substantive issues of litigation and featuring analysis and commentary on special points of interest.
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Articles in this report
In New York Marine and General Insurance Company v. Lafarge North America, Inc., 2010 U.S. App. Lexis 5307 (2d Cir. 2010), the Court of Appeals for the Second Circuit held that an insured may not expect its insurer to pay for defense costs, pursuant to an insurance policy, without the express consent of the insurer.
County With A Self-Insured Benefits Plan Is Not Entitled To Pursue Subrogation Under The New Jersey Collateral Source Rule, N.J.S.A 2A:15-97
Bergen County established the County of Bergen Employee Benefits Plan for its employees and dependents' healthcare. Bergen County then entered into an Administrative Services Agreement with Horizon Blue Cross Blue Shield, who administrated claims processing, adjudication and other services. However, Horizon subcontracted subrogation issues other entities. Under the Plan's insuring agreement, it was permitted to recover amounts paid to its insureds as a result of third-party negligence.
Insurer Has No Duty To Defend Where Insured Fails To Comply With The Policy’s Notice Requirement, Thereby Vitiating The Policy
In Ponok Realty Corp. v. United National Specialty Ins. Co., 893 N.Y.S.2d 125, 69 A.D.3d 596 (2d Dep’t 2010), the Appellate Court held that the insured failed to timely notify its insurer of a potential claim against the insured, which would have triggered the insurer’s duty to defend.
Jury Finding Of “Substantial Negligence” Against General Contractor Nullifies Subcontractor’s Contractual Duty To Indemnify
In Armento v. Broadway Mall Properties, Inc., 2010 N.Y. App. Div. LEXIS 12577 (2d Dep’t 2010), the Appellate Court further clarified the effect of a contractor’s own negligence upon its right to contractual indemnification from its own subcontractor.
Unfair Business Practices Allegation May Be Maintained Where An Insurer’s Conduct Is Deceptive Or Misleading And Has A Broad Impact On Consumers At Large
When a plaintiff-insured brings a lawsuit against its Insurer for breach of contract, it typically asserts a § 349 cause of action. Such claims have proven difficult to maintain. However, in Wilner v. Allstate Insurance Company, 2010 NY Slip Op 248; 893 N.Y.S.2d 208 (N.Y. App. Div., 2010), New York’s Appellate Division stated that when an insurer’s alleged wrongful conduct has a broad impact on consumers at large, the allegations are sufficient to state a claim under § 349.
Who Is Responsible When An Automatic Door Malfunctions?
In Singh v. United Cerebral Palsy of New York City, 2010 NY Slip Op 01602 (February 25, 2010), the Appellate Court held that the building owner was not entitled to summary judgment where issues of fact exist as to the applicability of the doctrine of res ipsa loquitur.
