Public Service Mutual Insurance v. 66 Overlook Terrace Corp.
Court: Appellate Division of the Supreme Court of the State of New York; November 21, 1994; New York; State Appellate Court
Greater New York Mutual Insurance Company, Massachusetts Bay Insurance Company, and Hanover Insurance Company are required to defend and indemnify the insured, while Public Service Mutual Insurance Company is not obligated to do so. The court affirmed this decision, stating that although the insured did not provide timely notice of a potential claim relating to a tort plaintiff until 15 months after receiving a summons and complaint—almost two years after the initial complaints were made—Greater New York, Massachusetts Bay, and Hanover are estopped from denying coverage due to their unreasonable delay in notifying the insured of any disclaimers. The insurers' reservation of rights and subsequent delay did not affect the timeliness of their disclaimers. Additionally, the court found the award of attorneys’ fees and expenses to the insured to be appropriate. The arguments from the insurers regarding the occurrence and injuries not being covered under their policies were deemed without merit. The ruling was unanimously affirmed by the judges involved.