The Court of Appeals found that its prior K2 decision conflicted with its own precedent, and that there was no rational reason for departing from a well-established rule of New York insurance law. The court therefore reversed its holding from last year and reaffirmed the principle that an insurer that makes a mistake and wrongfully denies a defense is not precluded from asserting its defenses to coverage for indemnity.

Read more here: The Storm Has Passed For NY Insurance Law, Law360 (Feb. 21, 2014).

By, Charles A. Booth