Kellar v. Mid-Hudson Cooperative Insurance
Court: Appellate Division of the Supreme Court of the State of New York; November 6, 1996; New York; State Appellate Court
An appeal was made regarding an order from the Supreme Court (Torraca, J.) that granted the plaintiff's motion for summary judgment on liability. The plaintiff had two insurance policies: a general homeowner’s policy and a separate policy covering a barn. A fire on March 8, 1994, destroyed the barn and its contents while both policies were active. The defendant insurer paid for the barn's damages under its specific policy but denied coverage for personal property stored in the barn under the homeowner’s policy, citing an exclusion that stated coverage did not include barns or their contents. The plaintiff initiated legal action seeking coverage under the homeowner’s policy for the destroyed personal property. After both parties moved for summary judgment, the Supreme Court ruled in favor of the plaintiff, interpreting the coverage to include personal property not typically found in a barn. Upon appeal, it was determined that the language of the exclusion—specifically stating that "Coverage C... does not include any barns or their contents"—was clear and unambiguous. Applying the plain meaning of the terms, the court concluded that the personal property in question was not covered by the homeowner’s policy. The exclusionary clause was held to take precedence over any broader coverage language and reflected the intent of the parties as it was clearly displayed in the policy documentation. The appellate court reversed the lower court's order, denied the plaintiff's motion, granted the defendant's cross-motion, and declared there was no coverage under the homeowner’s policy for damages to property located in the barn. The decision was unanimous among the justices involved.