Company Disclaims Coverage for Lead Paint Lawsuit

May 31, 2000

LVT Number: 14132

Landlord sued its insurance company, seeking coverage on tenant's claim of lead paint poisoning of her child. The insurance company had disclaimed coverage. Landlord said the disclaimer wasn't made on time. Both sides asked the court to rule in their favor without a trial. The court ruled for landlord, and the insurance company appealed. The appeals court ruled for the insurance company to the extent of reopening the case and sending it back for a trial. Whether the October 1997 disclaimer was on time depended on whether landlord had given them notice of the claim in a June 1997 letter.

Landlord sued its insurance company, seeking coverage on tenant's claim of lead paint poisoning of her child. The insurance company had disclaimed coverage. Landlord said the disclaimer wasn't made on time. Both sides asked the court to rule in their favor without a trial. The court ruled for landlord, and the insurance company appealed. The appeals court ruled for the insurance company to the extent of reopening the case and sending it back for a trial. Whether the October 1997 disclaimer was on time depended on whether landlord had given them notice of the claim in a June 1997 letter. The insurance company denied that it got this letter. But if landlord could prove that the letter was received, the insurance company would have no justification for waiting four months to disclaim coverage.

Dumet v. TIG Ins. Co.: NYLJ, 5/11/00, p. 28, col. 2 (App. Div.1 Dept.; Rosenberger, JP, Wallach, Andrias, Friedman, JJ)

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