Summary
awarding attorneys' fees to an insured where the insurer abandoned prosecution of the declaratory action and defended in the underlying action
Summary of this case from U.S. Underwriters Insurance v. City Club Hotel, LLCOpinion
December 5, 1994
Appeal from the Supreme Court, Kings County (Hurowitz, J.).
Ordered that the order is affirmed insofar as appealed from, with costs.
After commencing this declaratory judgment action to avoid its obligation to defend the respondent insured in an underlying personal injury action, the plaintiff insurer abandoned prosecution of this action, admitted coverage, and settled the underlying action on behalf of the respondent. The plaintiff does not dispute that it was required to defend and indemnify the respondent in the underlying action. Because the respondent was cast in a defensive position as the result of the plaintiff's attempt to free itself from the obligations of its policy, the Supreme Court properly concluded that the respondent is entitled to an award of reasonable costs and attorney's fees incurred in defending this declaratory judgment action (see, Mighty Midgets v Centennial Ins. Co., 47 N.Y.2d 12, 21; U.S. Liab. Ins. Co. v Staten Is. Hosp., 162 A.D.2d 445, 447). Copertino, J.P., Pizzuto, Santucci and Florio, JJ., concur.