New York CM Report of Recent Decisions (2007v1)
2007 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
Appellate Court Holds That Tenant's Insurer, As Subrogee, Stood In Shoes Of Tenant And Could Not Avoid The Covenants Of The Lease
In Seneca Insurance Company, as subrogee of Sultana Distribution-Services, Inc. v. The City of New York, 35 A.D.3d 248 (1st Dep’t 2006), the tenant’s insurer (“Seneca”) paid the tenant’s claim for property damage that it sustained as a result of the malfunctioning of a sprinkler system at its Premises.
Contamination Clause May Not Be Used To Deny Coverage For September 11, 2001 Pollution Damage Claim
The United States Court of Appeals for the Second Circuit recently held that a contamination clause in a property insurance policy may not be used to deny coverage for pollution damage caused by the collapse of the towers at the World Trade Center on September 11, 2001. Parks Real Estate, et. al. v. St. Paul Fire and Marine Ins. Co., et. al., 472 F.3d 33 (2006). In Parks, the Second Circuit found the term “contamination” ambiguous in the context of the property insurance policy in question. Id.
In A Case Of First Impression, The Southern District Of New York Follows A Strict Interpretation Of The Audio Home Recording Act
On February 19, 2007, the only two satellite radio providers, XM Satellite Radio and Sirius Satellite Radio, announced, after months of speculation, that they entered into a definitive agreement to merge. However, this highly-publicized deal will face tough hurdles to get the required approval by the Department of Justice and the Federal Communications Commission
In J&R Electronics Inc. v. One Beacon Insurance Co., 35 A.D.3d 169, 825 N.Y.S.2d 462 (1st Dep’t 2006), the New York Appellate Division, First Department, affirmed a lower court’s holding in an insurance dispute arising out of the September 11, 2001 attacks. The insured, J&R Electronics (“J&R”), filed an action against its insurer, One Beacon Insurance Company (“One Beacon”), alleging breach of the policy’s business interruption provision.
Insurer not Responsible For Coverage Where Insured Breached Policy Provision Requiring It To Set Damaged Property Aside For Examination
A New York Appellate Court recently held that where an Insured failed to set aside its physically damaged property for inspection by its Insurer, as required by the policy, the Insured breached its policy and the Insurer was not responsible for coverage. The case was originally brought in the Supreme Court of New York County and was heard on appeal by the Appellate Division, First Department. See Seaport Park Condominium v. Greater New York Mutual Ins. Co., 828 N.Y.S.2d 381 (1st Dep’t 2007).
Subrogation Unit's Success Continues
Recently, CM Partner Robert A. Stern and associate Virginia M. Markovich, obtained a victory at an Arbitration and were awarded the full amount of their client’s damages. The loss involved a sprinkler pipe burst at the Insured’s Premises, which resulted in significant property damage.
