Landlord Delayed Notifying Insurer of Tenant's Accident

Landlord sued its property liability insurer after the insurer refused to cover a claim. The insurer asked the court to dismiss the case without a trial, claiming that it clearly didn't have to defend landlord because landlord didn't file a timely claim. The court ruled against the insurer, and the insurer appealed.
Tenant had sued landlord after she fell down a staircase within her apartment in 2002. Landlord didn't notify its insurer about the accident until 10 months later. Landlord claimed that it had a good-faith belief that it wasn't responsible for tenant's fall. The building super discovered tenant lying on the floor inside her apartment, and tenant didn't tell the super what happened. So landlord had no way of knowing that tenant had fallen down the stairs. The appeals court ruled against the insurer. Tenant had previously claimed to have suffered from a medical condition that prevented her from paying her rent on time for several months. Under the circumstances, landlord had some justification for assuming that tenant's hospitalization after her fall was attributable to her medical condition. So it may have been reasonable for landlord not to make any further inquiry into how she ended up on the floor. A trial was needed to determine the facts; the case shouldn't simply be dismissed.

426-428 West 46th St. Owners, Inc. v. Greater New York Mutual Insurance Company: NYLJ, 11/3/08, p. 25, col. 2 (App. Div. 1 Dept.; Lippman, PJ, Mazzarelli, Williams, Buckley, Renwick, JJ)