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Federal Insurance Co. v. 1030 Fifth Avenue

Appellate Division of the Supreme Court of New York, First Department
Jun 15, 1999
262 A.D.2d 142 (N.Y. App. Div. 1999)

Opinion

June 15, 1999.

Appeal from the Supreme Court, New York County (Elliott Wilk, J.).


Exclusionary provisions in a contract of insurance are to be strictly and narrowly construed ( see, Home Ins. Co. v. Spectrum Information Technologies, 930 F. Supp. 825), and in this case, the insurer failed to meet its burden of demonstrating that the policy's "prior or pending litigation exclusion" clearly and unmistakably applied to defendant insured's claims ( see, Village of Sylvan Beach v. Travelers Indem. Co., 55 F.3d 114, 115-116). The broad term "any litigation" in subpart (A) of the cited exclusion is modified by the phrase "against any Insured". Accordingly, the IAS Court reasonably interpreted the phrase "against any Insured" as requiring a request for relief against the insured in any "pending litigation" in order for the subject exclusion to apply. The "pending litigation" upon which plaintiff insurer relies, a CPLR article 78 proceeding brought against the City Landmarks Preservation Commission, although naming defendant insured as a nominal party, did not involve any request for affirmative relief from defendant. Given this circumstance, the ambiguity in the language of the endorsement readily permits the conclusion that the pending litigation at issue herein was not "against any Insured", and inasmuch as none of the extrinsic evidence tends to cast light upon the meaning of the language, the provision was properly construed in favor of the insured ( see, Home Ins. Co. v. Spectrum Information Technologies, 930 F Supp, supra, at 844).

Concur — Nardelli, J.P., Williams, Wallach, Lerner and Andrias, JJ.


Summaries of

Federal Insurance Co. v. 1030 Fifth Avenue

Appellate Division of the Supreme Court of New York, First Department
Jun 15, 1999
262 A.D.2d 142 (N.Y. App. Div. 1999)
Case details for

Federal Insurance Co. v. 1030 Fifth Avenue

Case Details

Full title:FEDERAL INSURANCE COMPANY, Appellant, v. 1030 FIFTH AVENUE CORPORATION…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Jun 15, 1999

Citations

262 A.D.2d 142 (N.Y. App. Div. 1999)
691 N.Y.S.2d 498

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