The Second Circuit upheld the district court's grant of summary judgment finding that Scottsdale Insurance Company owed a defense to the insured and had to reimburse Greater New York Mutual Insurance Company for fronting the defense costs. Greater N.Y. Mut. Ins. Co. v. Burlington Ins. Co., 2024 U.S. App. LEXIS 10165 (2nd Cir. April 26, 2024).
Greater New York brought an action for a declaratory judgment against Scottsdale claiming Scottsdale owed a defense to Greater New York's insured, Park City 3 and 4 Apartments, Inc., in the underlying state case. A contract between Park City and Scottdale's insured, Phoenix Bridging, Inc., established Scottsdale's obligation to defend Park City in the underlying suit as an additional insured on Bridging's policies. In the underlying action for negligence against Park City and Bridging, Park City brought cross-claims against Bridging for breach of contract for failing to designate Park City as an additional insured. No party, however, could produce the contract.
Mr. Eyerly may be contacted at te@hawaiilawyer.com