Greenpoint Bank v. Security Mutual Ins.
Court: Appellate Division of the Supreme Court of the State of New York; February 22, 1998; New York; State Appellate Court
Security Mutual Insurance Company appeals a Supreme Court order that denied its cross motion for summary judgment to dismiss a complaint filed by Greenpoint Bank regarding an insurance policy. The case originates from a fire on January 8, 1992, that damaged property owned by Yolanda Reyes, who reported the incident to Security Mutual and submitted a claim naming Greenpoint as her mortgagee. Greenpoint requested direct payment of the insurance proceeds on July 15, 1993. Security Mutual required a sworn proof of loss, which Greenpoint submitted on October 21, 1993, but was rejected due to technical defects. After additional submissions and rejections, a third proof of loss submitted on June 30, 1994, was accepted by Security Mutual on August 17, 1994. The insurance policy required a payment of $68,335.50 within 45 days, but instead, Security Mutual rescinded its approval on January 12, 1995, claiming the claim was time-barred as Greenpoint had only two years from the date of loss to initiate a lawsuit. The Supreme Court found that genuine issues of fact exist regarding whether Security Mutual waived its right to assert the statute of limitations or is estopped from doing so. The order is affirmed, with costs awarded. Judges O’Brien, Sullivan, Friedmann, and Goldstein concurred in the decision.