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Bovis Lend Lease LMB, Inc. v. Royal Surplus Lines Insurance Company – Case Brief Summary (New York)

In Bovis Lend Lease LMB, Inc. v. Royal Surplus Lines Insurance Company (27 AD3d 84, 806 N.Y.S.2d 53 [1st Dept 2005]) the court held that the insurer's delayed disclaimer of liability based on the insured's late notice of claim is ineffective as against the insured, but is effective with respect to a co-insurer.

In that case, the court determined that the insurer was obligated to defend the insured, but that the obligation commenced only on the date of its actual notice of claim, thereby precluding the co-insurer, who had been defending the action, from receiving any contribution up to that point. This court believes that such conclusion is a reasonable application of Insurance Law § 3420 (d).