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U.S. Underwriters Ins. Co. v. Mesiftah Eitz Chaim of Bobov – Case Brief Summary (New York)

In U.S. Underwriters Ins. Co. v. Mesiftah Eitz Chaim of Bobov, 210 AD2d 218, 620 N.Y.S.2d 5 [2d Dept 1994], plaintiff insurer sought a declaratory judgment in order to free itself from its policy obligations to the insured in an underlying personal injury action.

The insurer then abandoned the prosecution of the declaratory judgment action, admitted coverage and settled the underlying action on behalf of the insured.

There, the court found that the insured was entitled to an award of the costs and attorneys' fees it incurred in that declaratory judgment action because the insured was cast in a defensive posture as a result of the insurer's attempt to avoid its policy obligations.