Erin Constr. & Dev. Co., Inc. v GulfIns. Co.

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Erin Constr. & Dev. Co., Inc. v Gulf Ins. Co. 2008 NY Slip Op 32046(U) July 18, 2008 Supreme Court, New York County Docket Number: 0103440/2005 Judge: Jane S. Solomon Republished from New York State Unified Court System's E-Courts Service. Search E-Courts (http://www.nycourts.gov/ecourts) for any additional information on this case. This opinion is uncorrected and not selected for official publication. SCANNED ON 712112008 [* 1 ] ~ U Y H ~ I LUUKI V I ~ Ut; T H E STATE OF NEW YORI( JANE SmSOLOWN PRFSFNT. - 6W YORK COUNTY PART / Justice I 7 - s( l - ERIN CONSTRUCTION INDEX NO. MOTION DATE GULF INSURANCE MOTION SEQ. NO. SEQUENCE NUMBER # 002 DISMISS COMPLAINT _ _ - _ _ _ _ --_ __-- - --_-- _-_-- : read on this motion tolfor PAPERS N U M B E R E D Notice o f Motion/ Order t o Show Cause - Affidavits - Exhibits A n s w e r i n g Affidavits - ... . \ -y Exhibits Replying Affidavits Dated: Check one: FINAL DISPOSITION A L DISPoSIT'oN [* 2 ] Plaintiff, -a g a i. ns1; - SOLOMON, JANE ~ UEI: I S I O N , ORDER, DECLARATION AND JUDGMENT (J. : Plaintiff E r i n C o n s t r u c t i o n & D e v e l o p m e n t Co, I n c . ( E , r i n ) m o v e s f o r summary j u d g m e n t i n t h i s d e c l a r a t o r y j u d g m e n t a c t i o n s e e k i n g i n s u r a n c e c o v e r a g e t o defend a n d i n d e m n i f y E r i n from a p e r s o n a l i n j u r y c l a i m . Defendant S e l e c t I n s u r a n c e Company, sued e r r o n e o u s l y a s G u l f I n s u r a n c e Co. a n d G u l f U n d e r w r i t e r s l n s u r a r l c e Co. ( t o g e t h e r r e f e r r e d t o a s G u l f Insurance) o p p o s e s t h e m o t i o n , and b y s e p a r a t e m o t i o n , seeks a d e c l a r a t i o n t h a t Eri.11 is not e n t i t l e d t o c o v e r a g e and d i s m i s s i n g t h e complaint. E r i n s b u s i n e s s was c o n s t r u c t i o n and b u i l d i n g renovation work. Scaffolding, Corp. On s e v e r a l o c c a s i o n s , it. e n g a g e d Rockledge (Rockledge) a s a s c a f f o l d i n g s u b - c o n t r a c t o r . According t o E r i n s p r e s i d e n t , J o h n Murnane, i t w a s t h e custom a n d p r a c t i c e o f E r i n a n d Rockledye t . h a t , when R o c k l e d g e a c c e p t e d a s u b c o n t r a c t f r o m E r i n , R o c k l e d g e would a d d E r i n a s a n 1 [* 3 ] a d d i t i o n a l i n s u r e d on i t s 1 i a b i l . i t y p o l i c y . t . h i s ayreerncn-L, Rockledge w o u l d t o be issued, C ~ L I S ~ a I n connection with c e r t i f i c a t e of i n s u r a n c e s h o w i n g E.rin a n d t h c p r o p e r t y o w n e r / c l i e n t a s addit<.onalinsureds. When E r i n was h i r e d t o work a t 3 8 1 0 Broadway i n Manhattan, i t e n g a g e d Rockledge t o i n s t a l l s c a f f o l d i n q o u t s i d e t h e b u i l d i n g under a w r i t t e n agreement. W h i l e i t makes no r e f e r e n c e t o R o c k l e d g e s o b l i g a t i o n t o add E r i n a s a n a d d i k i o n a l i n s u r e d , Rockledye d i d cause E r i n t o r e c e i v e a c e r t i f i c a t e i n d i c a t i n g t h a t E r i n was a n a d d i t i o n a l i n s u r e d . The c e r t i f i c a t e c o n t a i n s a d i s c l a i m e r t h a t i t was p r o v i d e d f o r i r i f o r m a t i o n p u r p o s e s o n l . y , c o n f e r r e d n o rights on i t s h o l d e r , a n d lit d i d n o t amend, a l t e r o r e x t e n d c o v e r a q e u n d e r t h e p o l i c y . R o c k l e d g e s i n s u r e r was G u l f I n s u r a n c e . T h e Rockledge p o l i c y i n c l u d e s a C o m m e r c i a l G e n e r a l L i a b i l i t y c o v e r a q e f o r m and an additional. i n s u r e d endorsement. The a d d i t i o n a l i n s u r e d e n d o r s e m e n t e x t e n d s c o v e r a g e t o a n y person o r o r g a n i z a t i o n for whom you a r e p e r f o r m i n g o p e r a t i o n s when you and s u c h person o r o r g a n j - z a t i o n have ag-reed i n w r i t i n g i n a c o n t r a c t o r agreement t h a t s u c h p e r s o n o r o r g a n i z a t i o n be added as a n addit-iional i n s u r e d on your p o l i c y . . . ( A d d i t i o n a l I n s u r e d Endorsement, a n n e x e d t o Affjdavit o f Eugene O t t o i n O p p o s i t i o n t o P l a i n t i f f s M o t i o n a t E x . A2, h e r e a f t e r r e f e r r e d t o a s t - h e A S E n d o r s c r n e n t ) By a summons a n d c o m p l a i n t d a t e d J a n u a r y 2 3 , 2 0 0 4 , a 2 . [* 4 ] p e r s o n named Konriie Cohen a l l e g e d t h a t he was i n j u r e d on J a n u a r y 2 6 , 2 0 0 3 when h e f e l l b e n e a t h lzhc Rockledge scaffold o n a sidewalk a d j a c e n t t o 3 8 1 0 Broadway. and Rockledqe, a l l e g i n g negl.igerice, l i g h t i n g u n d e r Lhc s c a f f o l d ( N . Y . I n April 2 0 0 4 , H sued t.he C i t y o f N e w York e ill part d u c t o i n a d c q u a t c C o u n t y I n d e x No. 6002.51/04). t . h e siimmons and c o r n p l a i n t w a s s u p p l e m e n t e d t o add E r i n a s a defendant. E r i n commenced t h i s a c t i o n ¬ o r a d e c l a r a t o r y j u d g m e n t t h a t it i s c o v e r e d a s a n a d d i t i o r i a l i n s u r e d u n d e r t h e K o c k l e d g e policy, a n d t h a t Gulf I n s u r a n c e i s o b l i g a t e d t o d e f e n d a n d i n d e m n i f y i t in t h e Coheri a c t i o n . The p a r t i e s now move for d i s p o s i t i v e relief. Gulf I n s u r a n c e c o n t e n d s t + h a t t h e r e i s n o w r i t t e n a g r e e m e n t h e t w e e n E r i n arid Rockledge r e q u i r i n g t h a t E r i n be a n additional insured, Endorsement. s o t h e r e is no c o v e r a g e f o r Erin u n d e r Lhc A I E r i n a r g u e s t h a t t h e A I Endorsement i s ambiguous as t o whether an a g r e e m e n t t o add a p e r s o n for whom t h e named i n s u r e d w a s p e r f o r m i n g work m u s t be i.n w r i t i n g . According t o E r i n , t h e p a s s a g e i n t h e A I E n d o r s e m e n t w h i c h s t a t e s t h a t when you and s u c h p e r s o n o r o r g a n i z a t i o n h a v e a g r e e d i n w r i t i n g i n a c o n t r a c t o r agreement t h a t such person . . - be a d d e d a s a n a d d i t - i o n a l i n s u r e d is r e a s o n a b 1 . y r e a d t o b e a p p l i c a b l e t o s i t u a t i o n s where t h e partj.es have e i t h e r a w r i t t n a c o n t r a c t , w h e r e t h e r e i s no w r i t i n q b u t o n l y a n a g r e e m e n t . or Erin further [* 5 ] c o n t e n d s t h a t t h e c e r t i f i c a t e o f i n s u r a n c e p r o v i - d e d b y Rock1,eclge s t a $ e s t h a t . E r i i i i s a n a d d i t i o n a l . i n s u r e d under t h e s u b j e c t polic:y, a n d t h a t r e p r e s e n t a t i o n should be e n f o r c e a b l e . N e w York c o u r t s h a v e h e l d r e p e a t e d l y t h a t a c e r t i f j.c:ate o f i n s u r a n c e w h i c h i n c l u d c s a d i s c l a i i n e r f t h a t it. :i.s f o r i n f o r m a t i o n on1.y a n d d o e s riot amend, e x t e n d or a l t e r c o v e r a g c p r o v j . d e d b y t h e p o l i c y , d o e s n o t c r e a t e c o v e r a y e wher>e t h e unambiguous l a n g u a g e of t h e p o l i c y p r o v i d e s none Mot-orj.st Iris. C o . v S u p e r i o r A c c o u s t i c s , Iric., (see,A m e r i c a n 2 7 7 A D 2 d 9 7 [ l s t Dept 20001 ; a n d T n t e r n a t i o n a l Cour.iers Corp. v N o r t h River I n s . &, 4 4 AD3d 5 6 8 Dept 20071)). T h e r e f o r e , E r i n may riot r e l y u p o n t h e c e r t i f i - c a t e of i n s u r a n c e , a n d m u s t show t h a t i t e x p r e s s l y i s covered a s an a d d i t i o n a l i n s u r e d , or that the l a n g u a g e o f t h e A I E n d o r s e m e n t i s a m b i g u o u s such t h a t . summary j u d g m e n t may n o t be g r a n t e d t o G u l f I n s u r a n c e . Whcn c o n s t r u i n g a n i n s u r a n c e p o l i c y , t h e g e n e r a l rule i s t h a t i n c a s e o f ambiguity t h a t c o n s t r u c t i o n of t h e p o l i c y w i l l be a d o p t e d w h i c h i s m o s t f a v o r a b l e t o t h e i n s u r e d (Mutual L i f e I n s . C o . Of N Y v H u r n i P a c k i n q Co., 2 6 3 US 1 6 7 [1923]), a n d a m b i g u i t i e s a r e c o n s t r u e d a g a i n s t t h e drafter ( G u a r d i a n J . , i f e I n s Co. v S c h a e f e r , 7 0 N Y 2 c 3 888, 8 9 0 [1987]). However, b e f o r e t h e r u l e s g o v e r n i n g c o n s t r u c t i - o n of ambiguous c o n t r a c t : s triggered, t h e c o u r t f i r s t must f i n d ambiguj.ty Of N . A m e r i c a , 4 6 NY2d 3 5 1 [1.9-18]). 4 are (Breed v I n s . Co. [* 6 ] Here, t h e r e i s no a m b i g u i t y . The p c r s o n o r n r , g a n i z a t . i o n s e c k i n g c o v e r a q c a s a n a d d i t i o n a l insured m u s t show t h a t i t a g r e e d i n w r i t i n g wiLh K o c k l e d g c t h a t i t be a d d e d as a n addit.inna1 insured. Erin contends t h a t t h e phrase i n a c o n t r a c t nt- agr-eement i n thcl e n d o r s e m e n t treat-es a n a m b i g u i t y a s t.o w h e t h e r t h e a g r e e m e n t t.o a d d E r i n a s an a d d i t i o n a l i n s u r e d a 1 . s ~ m u s t be i n w r i t i n q . IIowever, t h a t p h r a s e d o e s n o t alter t h e p l a i n mcaniriy o f t h e A I E n d o r s e m e n t that t h e r e m u s t b e a w r i t i n g , w h e t h e r - a c o n t r a c t , work o r d e r , i n v o i c e or ot:her d o c u m e n t s e t t i n g f o r t h the insurance ohiigation. An u n w r i t t e n u n d e r s t a n d i n g a r i s i n g from custom and p r a c t i c e clearLy does n o t create a d d i t i o n a l i n s u r e d c o v e r a g e u n d e r the A I E n d o r s e m e n t . Accordingly, i t hereby i s O R D E R E D t h a t . t h e m o t i o n for summary j u d g m e n t b y plaintiff ( m o t i o n s e q u e n c e 0 2 ) j~sd e n i e d , a n d t h e m o t i o n f o r summary judgment. b y d e f e n d a n t s ( m o t i o n s e q u e n c e 03) i s g r a n t e d ; and i t f u r t h e r i s DECLARED a n d AIlJuDGED t h a t p l a j . n t i f f E r i n C o n s t r u c t i o n & DevelopmenL Lo., I n c . i s riot a n a d d l t . i o n a 1 i n s u r e d u n d e r t h e s u b j e c t i n s u r a n c e p o l i c y i s s u e d b y S e l e c t I n s u r a n c e Company ( P o l i c y n u m b e r GS2806106); a n d i t further i s 5 [* 7 ] ORDERED t h a t . the c o m p l a i n t is dismissed, a n d the C l e r k c)f t h c Court. is directled to enter judgmcnt a c c o r d i n g l y , w i t h costs arid d i s b u r s e m e n t s to defendants Dated: tJlll.;/d , ;IS taxed. 2008 EN'TER : / 6 I

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