Insurance Coverage/Maritime
Our client, an insurance company, issued a charterer's legal liability policy to the insured, a charterer transporting a cargo of gypsum drywall boards from China to Florida. The cargo shifted during the voyage, causing the charterer to incur liability for damage to the cargo and vessel. While the charterer promptly notified our client of the occurrence, it waited several months to notify our client of lawsuits commenced by the cargo and vessel interests. The charterer commenced a declaratory judgment action against our client seeking a declaration of coverage. Following discovery, we moved for summary judgment on behalf of our client on the ground that late notice of the lawsuits was a valid basis to disclaim insurance coverage and that there was no requirement to show prejudice. The District Court granted our motion and, in affirming the District Court's decision, the Second Circuit adopted our position that under New York law our client was not required to show prejudice in order to decline coverage on the grounds of late notice of the lawsuit even though notice of the occurrence was timely. Notably, in a footnote to its decision, the Court of Appeals also agreed with our position that recently enacted provisions of the New York Insurance Law, §§ 3420(a)(5) and 3420(c)(2)(A), which require a showing of prejudice in order to disclaim insurance coverage on the grounds of late notice, was not applicable to maritime insurance policies. Pactrans Air & Sea Inc. v. New York Marine & General Insurance Co., 2010 U.S. App. LEXIS 14971 (2d Cir. 2010)
Why Choose Brown Gavalas & Fromm, LLP?
-
Our track record speaks volumes about our dedication to achieving results for our clients. Year after year, we have successfully provided result-oriented services, securing favorable outcomes in a cost-effective manner. We are committed to delivering value and achieving success for our clients in every case.
-
Our clients are at the heart of everything we do. We prioritize their needs and concerns, building strong relationships based on trust and open communication. Our dedicated team works tirelessly to understand our clients' goals and provide tailored legal solutions that meet their unique challenges.
-
Complex legal issues require creative solutions. At Brown Gavalas & Fromm, we approach challenges with a creative mindset, seeking innovative and strategic solutions to resolve even the most intricate legal problems. Our ability to think outside the box sets us apart in delivering comprehensive and effective legal counsel.
-
At Brown Gavalas & Fromm, we take pride in our reputation for excellence in maritime, aviation, transportation, insurance coverage, international law, and defense of liabilities. Our commitment to delivering high-quality legal services is unwavering, ensuring that our clients receive the best possible representation.