A1 Specialized, Inc. v. James River Insurance Company

Summary

The New York Appellate Division, First Department, held that an unsigned change order qualified as a written agreement requiring the insurer's insured to name A1 Specialized, Inc. as an additional insured. Because the insurance policies did not require a signed writing and the record showed an intent to be bound, James River Insurance Company had a duty to defend A1 in the underlying action. The court reversed the summary judgment order, reinstated the complaint, granted A1's partial summary judgment motion, and remanded for a hearing concerning defense costs.

Holdings

1. An unsigned document may qualify as a written agreement requiring a party to be named as an additional insured when the insurance policy does not expressly require that the agreement be signed.
2. The unsigned change order qualified as a written agreement requiring Arsenal to name A1 Specialized as an additional insured.
3. James River was required to defend A1 Specialized in the underlying tort action because the amended complaint alleged facts that were potentially within the scope of coverage and created a reasonable possibility of coverage.
4. The matter was remanded for Supreme Court to hold a hearing on A1 Specialized's costs incurred in defending the underlying action, to the extent A1's motion and appellate arguments requested such relief.

Questions Presented

1. Whether an unsigned change order may qualify as a written agreement requiring an insurer's insured to name another entity as an additional insured when the policy requires only a written agreement and does not expressly require a signed writing.
2. Whether the unsigned change order was enforceable based on objective evidence that the parties intended to be bound.
3. Whether the allegations in the underlying tort action triggered James River's duty to defend A1 Specialized.
4. Whether the matter should be remanded for a hearing on A1 Specialized's defense costs.

Disposition

reversed_and_remanded