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HNRK Obtains Summary Judgment on Behalf of Policyholder Client


On December 20, 2018, District Judge George Daniels of the Southern District of New York issued a memorandum decision and order denying defendant Federal Insurance Company’s motion for summary judgment and granting a cross-motion for summary judgment filed by HNRK on behalf of its client, Fabrique Innovations, Inc. Fabrique’s claimed loss arose from a third-party warehouse’s improper sale of apparel owned by Fabrique. Judge Daniels held that Fabrique stated a prima facie case for coverage under the Ocean Cargo insurance policy issued to it by Federal and that the two policy exclusions relied upon by Federal, the Dishonest Acts and Willful Misconduct exclusions, did not apply. Judge Daniels also rejected Federal’s argument that notice of the loss was late.

The case is Fabrique Innovations, Inc. d/b/a Sykel Enterprises v. Federal Insurance Company., No. 17 Civ. 737 (GBD) (S.D.N.Y.).

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