Smith Stratton News

In New York, Insurers With Any Basis to Disclaim Must Do So Promptly

January, 2012

In a dramatic shift, the First Department has ruled that a liability insurer which delayed issuing a disclaimer for some four months while investigating other coverage issues, had waived its right to do so.  The January 17, 2012 ruling in George Campbell Painting v. Nat’l Union Fire Ins. Co. of Pittsburgh, PA, expressly overruled a 2004 First Department case that approved a delay in disclaiming in order for the insurer to conduct “a prompt, reasonable investigation into other possible grounds for disclaimer.”  DiGuglielmo v. Travelers Prop. Cas. The First Department’s ruling adopts the reasoning of a 2001 Second Department decision and also conforms to § 3420(d) of the New York Insurance Law.

The insurer in Campbell Painting was aware of facts that supported a late notice defense at least as early as January of 2006, but waited until May to notify its insured of the disclaimer. The insurer claimed its delay was reasonable since it was conducting an investigation into other coverage issues. The court, however, focused on the requirement of the N.Y. Insurance Law which requires an insurer to disclaim “as soon as reasonably possible.” This language clearly requires an insurer with any basis to disclaim to do so as soon as possible or risk waiving its coverage defenses.

Bill Quackenboss Selected As Member Of North Hanover Township Committee

January, 2012

William E. Quackenboss, Jr. was selected to fill a vacant seat on the North Hanover Township Committee  during the Committee’s meeting on January 19, 2012.

The Township Committee is the governing body of North Hanover Township, and consists of five members.  North Hanover Township was incorporated in 1905 and is located in Burlington County, New Jersey.

Mr. Quackenboss is of counsel to Smith Stratton Wise Heher & Brennan.