Brian Fay Construction, Inc. v. Morstan General Agency, Inc.
Brian Fay Construction, Inc. (plaintiff) contracted with J.E Spano and Company, agreeing to indemnify Spano. The plaintiff then instructed its insurance agents, DFW Associates, Inc. and Douglass Fenning (together DFW), and later Morstan General Agency, Inc., to add Spano as an additional insured to its general liability policy with Burlington Insurance Company. An employee of Brian Fay Construction was injured, leading to a claim against Spano and a third-party action against the plaintiff. Burlington denied coverage, citing an employee exclusion and stating there was no evidence Spano was an additional insured. The plaintiff sued the agents for failing to properly procure insurance, seeking a declaration that they were obligated to defend and indemnify. The Supreme Court granted the plaintiff's motion for summary judgment, but the appellate court reversed, finding that the plaintiff failed to prove that Burlington would have been obligated to cover the claim even if Spano had been properly named as an additional insured.