Pepco Construction of New York, Inc. v. CNA Insurance
This case concerns an action for declaratory judgment initiated by Pepco Construction of New York, Inc. against CNA Insurance Company. Pepco sought a declaration that CNA was obligated to defend and indemnify it in an underlying personal injury action, arguing that a subcontract with Savmor Mechanical, insured by CNA, incorporated a provision from the prime contract requiring additional insured coverage. The Supreme Court initially granted summary judgment to Pepco. However, the appellate court modified this decision, ruling that the subcontract's language regarding the incorporation of the insurance procurement provision was ambiguous. This ambiguity creates a question of fact that precludes summary judgment, necessitating a trial to determine if Pepco qualified as an additional insured under CNA's policies. Consequently, Pepco's cross-motion for summary judgment on CNA's obligation to defend and indemnify was denied.