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Insurance Coverage is at Issue


The plaintiff is appealing orders from the Supreme Court of New York County that denied their motions for summary judgment in regard to liability.

Case Background

The record in this case shows that the defendant obtained malpractice insurance coverage from the plaintiff. The defendant made an effort to limit the amount of the premium to be paid to $165,000. However, it is clear that the plaintiff advised the defendant that the amount of premium to be charged would depend on information that was to be supplied by the defendant and the rates would be established by the Superintendent of Insurance.

The defendants in each case applied for insurance coverage and this coverage was supplied by the plaintiff.

Court Decision

The order from the Supreme Court of New York County that was entered in January of 1978 in favor of the first defendant hospital is reversed. The order denied the plaintiff’s motion for summary judgment. The motion for summary judgment on the issue of liability is granted.

The order that was made on the same date in the same court for the second defendant hospital that denied the motion for summary judgment for the plaintiff is reversed. The plaintiff’s motion for summary judgment is granted on the issue of liability. The counterclaims made by the defendant are dismissed. The case will be remitted for trial on the issue of damages.

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