HNRK Coverage Corner

On January 8, 2024, Justice Frank of the New York County Supreme Court issued a decision in Endurance Am. Ins. Co. v. StoneX Commodity Solutions, LLC, Index No. 653234/2022, granting summary judgment as to liability to StoneX Commodity Solutions, a trader of physical commodities, in an insurance coverage dispute, arising from a loss of more than 500,000 bushels of soybeans as a result of a warehouse owner’s fraud.

The court held that StoneX established an actual loss during the relevant policy period, declaring there is insurance coverage to cover the loss of 502,315 bushels of ...

On December 26, 2023, the Second Circuit issued a decision in Ezrasons, Inc. v. The Travelers Indemnity Co., Docket No. 22-766, construing an ambiguous provision in a marine cargo insurance policy in favor of the insured under the doctrine of contra proferentem.

As the Second Circuit explained: “When dealing with insurance policies, it is a ‘fundamental’ principle of New York law that ambiguities should be interpreted against the insurer and in favor of the insured.” This rule of construction (which we have discussed in previous posts) is an application of the contra ...

On February 6, 2023, Justice Louis L. Nock of the New York County Supreme Court issued a decision in Wesco Ins. Co. v. Nunez Dental Servs., P.C., 2023 NY Slip Op 30373(U), holding that a criminal acts exclusion barred coverage for a lawsuit alleging violations of the rights of privacy and publicity under the N.Y. Civil Rights Law, despite the fact that the insured was never convicted, or even charged with, a crime.

The underlying lawsuit alleged that the insured, Nunez Dental, misappropriated the image of the plaintiff’s image to advertise Nunez’s dental services.  Among other ...

On January 9, 2023, Justice Lebovits of the New York County Supreme Court issued a decision in Peleus Ins. Co. v RCD Restorations Inc., 2023 NY Slip Op 50034(U), holding that an insurer could not recoup defense costs from its insured, without an express reservation of the right of recoupment.  The Court explained:

Although Peleus provided RCD with coverage in the underlying action/third-party action under a reservation of rights (see NYSCEF No. 17 [reservation of rights letter]), the letter notifying RCD of Peleus’s coverage position did not reserve the right "to recoup expenses ...

On September 22, 2022, the Second Circuit issued a decision in Fireman’s Fund Ins. Co. v. OneBeacon Ins. Co., Case No. 20-4282, ruling than an insured’s below limits settlement with an excess insurer satisfied the exhaustion requirement of a higher-tier excess policy.

The insured, ASARCO, was a mining, smelting and refining company facing liability in the hundreds of millions for personally injury claims arising from alleged asbestos exposure.  Its insurance program for the relevant period consisted of three excess policies issued by Fireman’s Fund: the first covered $20 ...