Philipps Wins Appeal on Insurance Coverage
Issue
April 24, 2009 - Member John N. Philipps, Jr.
recently won an appeal involving an insurance
coverage issue. At issue was the applicability of a
parent's insurance policy for a son who was involved
in an automobile accident.
At the time of the accident, the son was not living in the
parent's household and was in the U.S. Army. The
accident occurred when the son, who was driving his
separately owned and separately insured vehicle, was
involved in a fatal accident while he was on leave in
the Western New York area. The parent's insurance
policy had listed the son as a licensed driver who
resides in the household.
However, the evidence clearly indicated that the son
did not reside in the household, a point which was not
opposed by opposing counsel. Philipps argued on
behalf of the insurance company that the son was not
an "insured" under the policy as he was not a named
insured nor did he fit under any other definition of
an "insured" under the facts of this case. The lower
court agreed and granted the insurance company's
cross motion for summary judgment. The Appellate
Division, Fourth Department, affirmed.
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GAP IN PROOF INSUFFICIENT TO ESTABLISH LACK OF CONSTRUCTIVE NOTICE.
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In James v. Steinmiller, _____ N.Y.S.2d
______, 2009 WL 1163882 (4th Dept. 2009), the
plaintiff commenced an action seeking damages for
injuries she sustained when she fell on a substance
on the defendant's property. The defendant moved for
summary judgment arguing that he lacked
constructive notice because the plaintiff could not
establish how long the substance was in place on the
defendant's property nor could she establish the
identity of the substance. The Fourth Department
upheld the trial court's denial of the defendant's
motion because the defendant failed to meet his initial
burden that the substance had not been on his
property "for a sufficient length of time to permit him to
discover and remedy the condition." Id., citing
Mancini v. Quality Mkts., 256 A.D.2d 1177, 684
N.Y.S.2d 391 (4th Dept. 1988).
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OPERATION OF POLICE VEHICLE DID NOT RISE TO THE LEVEL OF RECKLESS DISREGARD.
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In Herod v. Mele, _____ N.Y.S.2d ______,
2009 WL 1163932 (4th Dept. 2009), the plaintiff sued
Orleans County and a Sheriff's Deputy for injuries
sustained when she was struck by a police vehicle
that was responding to an emergency call. The Fourth
Department ruled that where the vehicle was enroute
to an emergency operation, it was entitled to the
protections of Vehicle & Traffic Law §1104(e) and
should be held to the reckless disregard standard of
care. The court further found that there was no
evidence of reckless disregard, even where the
defendant was operating his vehicle on wet roads at
speeds exceeding the posted speed limit, because
he was "duty-bound to use all reasonable means to
arrive at the scene as soon as possible."
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INSURER'S DELAY INSUFFICIENT TO ESTABLISH A REASONABLE EXCUSE FOR AN INSURED'S DEFAULT.
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In Leifer v. Pilgreen Corporation, _____
N.Y.S.2d _____, 2009 WL 350723 (2nd Dept. 2009),
the plaintiff moved for a default judgment after the
defendant failed to timely serve its answer and failed
to seek an additional extension of time once the first
expired. The court ruled that the defendant did not
successfully oppose the motion because it did not
demonstrate a justifiable excuse for its default and the
existence of a meritorious defense. In an attempt to
demonstrate a reasonable excuse for the delay, the
defendant argued that it failed to answer because of
its insurance carrier's long delay in defending the
action. The court ruled that the insurance carrier's
delay did not constitute a justifiable excuse for the
defendant's default and granted the plaintiff a default
judgment.
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SUM CARRIER MUST SHOW IT WAS PREJUDICED BY LATE NOTICE OF SUM CLAIM TO DISCLAIM COVERAGE.
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In Bhatt v. Nationwide Mutual Ins. Co., 877
N.Y.S.2d 562, 2009 N.Y. Slip Op. 03301 (4th Dept.
2009), the plaintiff provided her SUM carrier prompt
notice of a motor vehicle accident and of her
subsequent claim for no-fault benefits. Nearly three
years after the accident, the plaintiff provided notice to
her SUM carrier of her claim under the SUM
endorsement. The defendant SUM carrier disclaimed
coverage on the ground that the plaintiff had failed to
provide timely notice of the SUM claim. The Fourth
Department held that where an insured previously
provided timely notice of an accident, the carrier must
establish that it was prejudiced by late notice of the
SUM claim before it may properly disclaim coverage.
The court held that the defendant failed to establish
that it was prejudiced by the plaintiff's delay in
providing notice of the SUM claim and upheld the trial
court's denial of the defendant's summary judgment
motion.
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DEFENSE VERDICT OVERTURNED AS AGAINST THE WEIGHT OF THE EVIDENCE.
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The Fourth Department recently overturned a jury
verdict on the issue of liability in Bailey v. Daly,
876 N.Y.S.2d 805, 2009 N.Y. Slip Op. 03217
(4th Dept. 2009). This matter arose from a slip and
fall accident that occurred on a walkway at the
defendant's residence. The evidence presented at
trial established that the subject walkway had not
been completely cleared of snow and ice and patches
of ice remained. Following the completion of trial, the
jury found that the defendants were negligent, but that
their negligence was not a substantial factor in
causing the plaintiff's injuries. The Fourth Department
reversed the Supreme Court's order denying the
plaintiff's motion to set aside the verdict and granted a
new trial on the issue of liability. The Fourth
Department held that given the facts of the case, the
issues of negligence and proximate cause were "so
inextricably interwoven" that it was logically impossible
for a jury to find negligence without also finding
proximate cause.
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MERE FACT THAT FARM DOG IS UNRESTRAINED DOES NOT ESTABLISH ITS PROPENSITY TO INTERFERE WITH TRAFFIC.
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In Myers v. MacCrea, 61 A.D.3d 1385, 876
N.Y.S.2d 806 (4th Dept., 2009), the plaintiff sued to
recover for injuries sustained when one of the
defendants' dogs ran into the road and collided with
his bicycle. The defendants moved for summary
judgment arguing that they had no constructive notice
that their dog had a propensity to interfere with traffic
on the road. The plaintiff opposed this motion,
arguing a question of fact exists where the
defendants' dogs were allowed to run freely on a 100-
acre farm. The plaintiff further argued a question of
fact exists where one of the defendants admitted that
the dog was "trouble." The Fourth Department
affirmed the lower court's decision in favor of the
defendants holding that the evidence presented by the
plaintiff failed to raise a question of fact that the
defendants knew, or should have known, that their
dog had a propensity to interfere with traffic.
Prepared by Patrick D. Slade
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