Feb 14, 2011

First Department Affirms Summary Judgment on Cross Liability Exclusion

385 Third Avenue Associates, L.P., et al. v. Metropolitan Metals Corp., et. al., (1st Dep’t, 2011 NY Slip Op 787) aff’g (N.Y. Sup. Ct., New York Cty, Index No. 105708/08)

The Appellate Division, First Department, unanimously affirms Ford Marrin’s summary judgment victory on behalf of its client, The Burlington Insurance Company, and rejects an attempt to obtain coverage for contractual indemnification claims brought in an underlying personal injury action. In upholding the trial court’s decision that there was no coverage, the Appellate Division held that the policy’s Cross Liability Exclusion unambiguously excluded coverage for any actual or alleged bodily injury to an employee of any insured. Significantly, the First Department rejected appellants’ argument that the Cross Liability Exclusion does not encompass claims for contractual indemnification and held that it is immaterial whether the policy proceeds are sought by way of direct claims by the injured party or by way of the additional insured’s contractual indemnification claims against the named insured.

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