TLS&S Attorneys Meryl R. Lieberman, Robert Nobel and Lisa Black Prevail on Motion For Summary Judgment Against National Union In Insurance Coverage Matter
May 20, 2009

HAWTHORNE, New York - On May 7, 2009, New York Supreme Court Justice Walter Tolub granted summary judgment in favor of TLS&S clients, George Campbell Painting (Campbell) and Triborough Bridge and Tunnel Authority (TBTA), finding that those parties were entitled to insurance coverage under an umbrella policy issued by National Union to a subcontractor. As a result, the umbrella insurer was ordered to pay its pro rata share of a settlement in the underlying personal injury suit, which amounts to $999,950.

Although National Union denied coverage to Campbell and TBTA based upon the insureds' late notice, the court agreed with TLS&S attorneys Meryl Lieberman, Robert Nobel and Lisa Black and found that the umbrella insurer's disclaimer, issued approximately seven months after notice was provided, was untimely and, therefore, the umbrella insurer was estopped from denying coverage pursuant to New York Insurance Law section 3420 (d). In this regard the court rejected the umbrella insurer's argument that its delay was justified because it had to investigate the underlying claim, noting that the basis for the denial was evident from the original notice and, therefore, there was no need for an investigation.