Mar 11, 2011

Firm Successfully Obtains Rescission of Insurance Policy

Sirius America Insurance Company and Artimus Construction, Inc. v. The Burlington Insurance Company et al., (1st Dep’t, 2011 NY Slip Op 1359) rev’g (N.Y Sup. Ct., New York Cty, Index No. 600785/04).

The Appellate Division, First Department, unanimously reversed a trial court’s order and granted Ford Marrin’s client, the Burlington Insurance Company, summary judgment, declaring that Burlington’s policy was void ab initio as a result of the policyholder’s material misrepresentations, and therefore provided no coverage for an underlying claim relating to a construction accident. In reversing the trial court, the Appellate Division rejected the trial court’s reasoning and agreed with our argument that the policy should be declared void ab initio because the policyholder failed to reveal that it performed dangerous demolition work. Specifically, the Appellate Division ruled “that Burlington would not have insured risks associated with [the insured]’s undisclosed demolition work, particularly where the building exceeded four stories in height.”

Partner James M. Adrian successfully represented the client in this action.