Bahnuk v. Countryway Ins. Co.
Paul Bahnuk, an emergency medical technician, was injured while responding to a call and subsequently sued Pauline Williams, the property owner. Williams' insurer, Countryway Insurance Company, disclaimed coverage. Williams and Bahnuk agreed to a confession of judgment for $100,000, with Bahnuk agreeing not to execute against Williams but instead pursue Countryway under Insurance Law § 3420 (a) (2). Bahnuk then commenced an action against Countryway. Supreme Court denied both parties' motions for summary judgment, finding Countryway's notice of disclaimer to Bahnuk insufficient but also a triable issue of fact regarding collusion between Bahnuk and Williams. The Appellate Division, Third Department, affirmed, agreeing that the notice was insufficient and that a factual question remained regarding collusion.