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Greater N.Y. Mut. Ins. Co. v. White Knight Restoration – Case Brief Summary (New York)

In Greater N.Y. Mut. Ins. Co. v. White Knight Restoration (7 AD3d 292, 293, 776 NYS2d 257 [1st Dept 2004], the Court affirmed the dismissal of the action brought by the owner and general contractor against the subcontractor's insurance broker for breach of contract and negligence.

In its decision, the Court stated:

"Regardless of whether the broker acted recklessly, the causes of action for fraud and negligent misrepresentation, based on the inaccurate certificates, were properly dismissed because it was unreasonable to rely on them for coverage in the face of their disclaimer language and, with respect to the negligent misrepresentation claim, because of the absence of a relationship approximating privity (see Benjamin Shapiro Realty Co. v. Kemper Natl. Ins. Cos., 303 AD2d 245, 756 NYS2d 45 [(1st Dept) 2003], lv denied 100 NY2d 573, 796 NE2d 473, 764 NYS2d 382 [2003])." (7 AD3d at 293.)