HNRK Coverage Corner

On November 27, 2020, Justice Masley of the New York County Commercial Division issued a decision in Alvarez v. XL Specialty Ins. Co., 2020 NY Slip Op 33917(U), holding that a lawsuit against the insureds was not wholly excluded from coverage under a D&O policy where only one part of the lawsuit involved “Wrongful Acts” at issue in an earlier lawsuit that was covered under a prior policy period.

The underlying lawsuit in Alvarez was an action by the Creditors’ Committee of Sears Holdings Corp. against former officers and directors, alleging 35 causes of action, arising from three ...

On November 24, 2020, the First Department issued a decision in Wesco Ins. Co. v. Hellas Glass Works Corp., 2020 NY Slip Op 06975, holding that consideration of facts outside the complaint established an insurer’s duty to defend a personal injury action.

Affirming the motion court’s decision, which was previously discussed on this blog, the First Department explained:

Although the duty to defend is primarily determined by the complaint, wooden application of the “four corners of the complaint” rule would render the duty to defend narrower than the duty to indemnify.  Based ...

On October 22, 2020, Judge Román of the SDNY issued a decision in U.S. Specialty Ins. Co. v. Village of Chester, Case No. 19-cv-467(NSR), staying an insurer’s declaratory judgment action pending the resolution of a parallel state court action that would determine the factual issues underlying the coverage dispute.

The Village of Chester sought liability coverage for a lawsuit by a developer who alleged that the City had improperly interfered with the planned construction of a multifamily residential development.  At issue in the underlying litigation was the enforceability of ...

On August 20, 2020, the Fourth Department issued a decision in Scalzo v. Central Co-op. Ins. Co., 2020 NY Slip Op 04639, holding that an intentional assault was excluded from coverage under a liability policy, despite conclusory language in the complaint asserting a negligence claim in the alternative.

The plaintiff in the underlying personal injury lawsuit asserted two causes of action:  the first alleged that the insured (Scalzo) assaulted the plaintiff “by seizing him, striking him and punching him in the face” and that those actions were “willful, intentional ...

On October 7, 2020, North Carolina Superior Court Judge Orlando F. Hudson, Jr. handed down an important victory for policyholders seeking business interruption insurance for losses arising from closures relating to the COVID-19 pandemic.  In North State Deli, LLC v. The Cincinnati Ins. Co., Case No. 20-CVS-02569, Judge Hudson granted summary judgment to a group of restaurants, ruling that state shutdown orders constitute a covered “direct physical loss” under the applicable property insurance policies.

As discussed in my article, “A Guide to Insurance Coverage for ...