Home Insurance Company v. Tokyo Marine and Fire Company

Citations: 221 A.D.2d 592; 634 N.Y.S.2d 500; 1995 N.Y. App. Div. LEXIS 12477

Court: Appellate Division of the Supreme Court of the State of New York; November 26, 1995; New York; State Appellate Court

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In a legal dispute regarding the obligation of Tokyo Marine and Fire Company to defend and indemnify Savin Corp. in an underlying negligence action, the Supreme Court of Suffolk County issued an order on August 11, 1994. The plaintiffs, including Savin Corp. and its insurance carrier Home Insurance Company, appealed the court's decision to compel arbitration and stay the action. Conversely, the defendants—Tokyo Marine, Ricoh Company Limited, and Ricoh Corporation—cross-appealed the denial of their motion to dismiss the complaint and to mandate Savin to indemnify Ricoh Company Limited.

The appellate court reversed the order regarding arbitration, determining that the insurance policy from Tokyo was separate from the indemnification clause in the distribution agreement between Savin and Ricoh Limited, and thus not subject to the arbitration clause. The court affirmed the denial of the cross appellants' motions, finding no merit in their arguments.

The court concluded that the declaratory judgment action should proceed, and also awarded the plaintiffs one bill of costs. The case stemmed from a personal injury action initiated against Savin in 1991 by an individual injured while delivering a photocopier sold by Savin, leading to Savin’s claim for indemnification against Ricoh Corporation. The distribution agreement established between Savin and Ricoh Limited included both an arbitration clause and an indemnification provision, but these were deemed not applicable to the current dispute regarding the insurance policy.