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Prince Seating Corp. v. QBE Insurance

Appellate Division of the Supreme Court of New York, Second Department
May 11, 2010
73 A.D.3d 884 (N.Y. App. Div. 2010)

Opinion

No. 2009-02539.

May 11, 2010.

In an action, inter alia, for a judgment declaring that the defendant QBE Insurance Company is obligated to defend and indemnify the plaintiff in an action entitled Rabideau v Prince Seating Corp., pending in the Circuit Court of Fairfax County, Virginia, under at law No. 213800, the defendant QBE Insurance Company appeals, as limited by its brief, from so much of an order of the Supreme Court, Kings County (Jacobson, J.), dated January 29, 2009, as denied its motion for summary judgment declaring that it is not obligated to defend or indemnify the plaintiff in the underlying action, and dismissing the second amended complaint insofar as asserted against it.

Abrams, Gorelick, Friedman Jacobson, P.C., New York, N.Y. (Michael E. Gorelick of counsel), for appellant.

Seidemann Mermelstein, Brooklyn, N.Y. (David J. Seidemann of counsel), for respondent.

Before: Mastro, J.P., Covello, Eng and Belen, JJ.


Ordered that the order is affirmed insofar as appealed from, with costs.

The plaintiff allegedly provided notice of the underlying claim to its broker, the defendant Century Coverage Corp. (hereinafter Century), rather than, as required by the subject policy, to the insurer, the appellant, QBE Insurance Company (hereinafter QBE). It is well settled that, absent some evidence of an agency relationship, even timely notice of an accident by an insured to a broker is not effective and does not constitute notice to the insurance company, as a broker is considered to be an agent only of the insured ( see Security Mut. Ins. Co. of N.Y. v Acker-Fitzsimons Corp., 31 NY2d 436; Matter of Temple Constr. Corp. v Sirius Am. Ins. Co., 40 AD3d 1109, 1111-1112; 120 Whitehall Realty Assoc., LLC v Hermitage Ins. Co., 40 AD3d 719, 721; Gershow Recycling Corp. v Transcontinental Ins. Co., 22 AD3d 460, 462; Rendeiro v State-Wide Ins. Co., 8 AD3d 253). Moreover, absent a valid excuse, the failure to satisfy a provision in an insurance policy requiring notice of a covered occurrence, a condition precedent to the insurer's duty to defend and/or indemnify claims against the insured, vitiates the policy ( see Empire City Subway Co. v Greater N.Y. Mut. Ins. Co., 35 NY2d 8; Security Mut. Ins. Co. of N.Y. v Acker-Fitzsimons Corp., 31 NY2d at 440; Jeffrey v Allcity Ins. Co., 26 AD3d 355, 356; Centrone v State Farm Fire Cas., 275 AD2d 728). In this case, there is no evidence that a principal-agent relationship between Century and QBE existed.

However, the terminology of the policy, including the notice provision, in which the words "we," "us," and "our," referring to "the company providing this insurance," were used to describe who should be notified, is ambiguous. QBE was not clearly identified as the party to whom those terms applied. Given that ambiguity, there is an issue of fact as to whether "the contract should be interpreted to allow notice to [the] broker" ( Jeffrey v Allcity Ins. Co., 26 AD3d at 356).

Accordingly, the Supreme Court correctly denied QBE's motion.

In light of our determination, we do not reach the parties' remaining contentions.


Summaries of

Prince Seating Corp. v. QBE Insurance

Appellate Division of the Supreme Court of New York, Second Department
May 11, 2010
73 A.D.3d 884 (N.Y. App. Div. 2010)
Case details for

Prince Seating Corp. v. QBE Insurance

Case Details

Full title:PRINCE SEATING CORP., Respondent, v. QBE INSURANCE COMPANY, Appellant, et…

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

Date published: May 11, 2010

Citations

73 A.D.3d 884 (N.Y. App. Div. 2010)
2010 N.Y. Slip Op. 4162
903 N.Y.S.2d 410

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