Dormitory Authority v. Continental Casualty Co., No. 13-1671 (2d Cir. 2014)Annotate this Case
Continental issued claims-made liability policies to the architectural firm responsible for designing and overseeing the construction of a building for the DASNY. In this declaratory judgment action, the insurer appealed from the district court's ruling on summary judgment that the two design flaws in the same structure were not "related." The court concluded that the 2002 Demand Letter could not be fairly read to concern the Ice Control Issue; and, focuses entirely on the Steel Girt Tolerance Issue, it could not be fairly read as an omnibus claim concerning all architectural defects in the Baruch College building; the court agreed with the district court that the Steel Girt Tolerance Issue and the Ice Control Issue arose from two unrelated wrongful acts; and, therefore, the court affirmed the district court's declaration that the two issues were unrelated. However, the court concluded that the district court abused its discretion by awarding prejudgment interest from the date of the settlement agreement itself. Accordingly, the court vacated the award and remanded for further proceedings.