Authority Fleet Servs. Corp. v. Amtrust N. Am., Inc.

Summary

The Appellate Division, Second Department, affirmed an order and judgment requiring Amtrust North America, Inc. to defend Authority Fleet Services Corp. and the other plaintiffs in an underlying construction-accident action. The court held that the allegations in the underlying complaint suggested a reasonable possibility of coverage and that the insurer failed to raise a triable issue of fact defeating its duty to defend.

Holdings

1. The allegations in the underlying complaint suggested a reasonable possibility of coverage for the plaintiffs and therefore triggered Amtrust's duty to defend.
2. The plaintiffs were entitled to summary judgment declaring that Amtrust was obligated to defend them, and Amtrust failed to raise a triable issue of fact in opposition.

Questions Presented

1. Whether the allegations in the underlying construction-accident complaint created a reasonable possibility of coverage sufficient to trigger Amtrust's duty to defend.
2. Whether Amtrust established as a matter of law that there was no possible factual or legal basis for indemnification under any policy provision.
3. Whether the plaintiffs were entitled to summary judgment declaring that Amtrust was obligated to defend them in the underlying action.

Disposition

affirmed