HNRK Coverage Corner

On December 27, 2017, Justice Sherwood of the New York County Commercial Division issued a decision in Freedom Specialty Ins. Co. v. Platinum Mgt. (NY), LLC, 2017 NY Slip Op 32728(U), granting a preliminary injunction directing three excess D&O insurers to advance defense costs for the defense of a federal securities fraud prosecution, and related civil actions (N.B. I represented one of the insureds in this case, and I argued the preliminary injunction motion on behalf of all the insureds. See Law360’s coverage of the oral argument on the preliminary injunction motion here).

The ...

On November 8, 2017, the Second Circuit issued a decision in Nick's Garage, Inc. v. Progressive Casualty Ins., Case No. 15-1426-cv, holding that Section 2601(a) of the New York Insurance Law, which prohibits insurers from "engag[ing] in unfair claim settlement practices," but provides no private right of action, does not preempt a claim against an insurer for "deceptive acts or practices" under Section 349 of the General Business Law.

In Nick's Garage, a car repair shop (the "Garage") brought suit against an automobile insurer as assignee of certain claims for repairs to damaged ...