Wausau Underwriters Insurance v. Cincinnati Insurance
Docket: No. 06-1098-CV
Court: Court of Appeals for the Second Circuit; October 18, 2006; Federal Appellate Court
The judgment of the district court is affirmed. Cincinnati Insurance Company (Cincinnati) appealed a summary judgment favoring Town Square Mall Associates, LLC (Town Square) and Wausau Underwriters Insurance Company (Wausau) regarding Cincinnati's duty to defend and indemnify Town Square in a slip-and-fall lawsuit. Town Square, as an 'additional insured' under Cincinnati's policy with Masciarelli Construction Company (Masciarelli), claimed coverage for the incident occurring after Masciarelli had completed snow removal operations. Cincinnati contended that the slip-and-fall did not arise from Masciarelli’s 'ongoing operations,' arguing for a narrow interpretation of that term. However, the court referenced New York case law, specifically Perez v. New York City Housing Authority, which supports a broader interpretation of 'ongoing operations' that includes events related to work completed but not yet fully secured. The court found that Masciarelli's responsibilities included preventing freezing conditions, thus the incident fell within the scope of coverage. Cincinnati further challenged the reasonableness of the settlement amount in the underlying case but failed to provide evidence to dispute the plaintiffs’ claims regarding the patron's injuries and the settlement's appropriateness. Consequently, the court held that the settlement was reasonable. The district court's decisions were upheld, confirming Cincinnati's duty to indemnify Town Square and Wausau.