Lancer Insurance v. Louis Provenzano, Inc.
Opinion of the Court
Subsequently, LPI commenced a third-party action against Yankee Brokerage, Inc. (hereinafter Yankee), the insurance broker which procured the subject insurance policies for LPI, and Jeff Goldstein, Yankee’s president (hereinafter together the Yankee defendants). LPI asserted causes of action, in effect, to recover damages for the Yankee defendants’ alleged negligence and breach of contract in failing to provide timely notice of the subject incident to Lancer on behalf of LPI, and for a judgment declaring that the Yankee defendants are obligated to indemnify LPI in the underlying action to the extent Lancer is not obligated to indemnify it.
The Supreme Court properly denied that branch of LPI’s motion which was for summary judgment awarding it declaratory relief against Yankee, and Lancer’s motion for summary judgment awarding it declaratory relief against LPI and Jennings. The Supreme Court erred, however, in denying that branch of the Yankee defendants’ cross motion which was, in effect, for summary judgment dismissing the third-party causes of action, in effect, to recover damages for negligence and breach of contract and declaring that they are not obligated to indemnify LPI in the underlying action, and LPI’s cross motion for summary judgment declaring that Lancer is obligated to defend and indemnify it in the underlying action.
LPI and the Yankee defendants demonstrated their prima facie entitlement to judgment as a matter of law by presenting evidence that, although Lancer disclaimed coverage for the subject incident under the Garage Non-Dealer’s Policy, it failed to disclaim coverage under the Garage Dealer’s Policy, which also provided coverage for LPI’s claim based on the subject incident. “ ‘As with the construction of contracts generally, unambiguous provisions of an insurance contract must be given their plain and ordinary meaning, and the interpretation of such provisions is a question of law for the court’ ” (Farm Family Cas. Ins. Co. v Brady Farms, Inc., 87 AD3d 1324, 1326 [2011], quoting Vigilant Ins. Co. v Bear Stearns Cos., Inc., 10 NY3d 170, 177 [2008]). Here, LPI and the Yankee defendants demonstrated, prima facie, that the Garage Dealer’s Policy clearly and unambiguously provides coverage for the subject incident.
In opposition, Lancer failed to raise a triable issue of fact. In general, whenever an insurer wishes to exclude certain coverage from its policy obligations, it must do so “in clear and unmistakable” language, and any such exclusions or exceptions from
Since this is, in part, a declaratory judgment action, the matter must be remitted to the Supreme Court, Nassau County, for the entry of a judgment, inter alia, declaring that Lancer is obligated to defend and indemnify LPI in the underlying action, and that the Yankee defendants are not obligated to indemnify LPI in the underlying action (see Lanza v Wagner, 11 NY2d 317 [1962], appeal dismissed 371 US 74 [1962], cert denied 371 US 901 [1962]).
In light of our determination, we need not reach the parties’ remaining contentions. Florio, J.P., Dickerson, Sgroi and Miller, JJ., concur.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.