Wausau Underwriters Insurance v. Old Republic General Insurance
This case addresses a dispute between Wausau Underwriters Insurance Company and Old Republic General Insurance Company concerning their respective obligations to defend and indemnify the "Broadway Defendants" in an underlying personal injury lawsuit. Wausau, providing coverage to the Broadway Defendants, sought a declaratory judgment that Old Republic, as the insurer for construction manager McGowan Builders Inc., was required to provide coverage as the Broadway Defendants were additional insureds. The Court, applying New York law, determined that the injury sustained by a potential subcontractor's employee on the construction site arose from McGowan's "ongoing operations," thus triggering Old Republic's duty to both defend and indemnify. Furthermore, the Court rejected Old Republic's defense of untimely notice, finding no material prejudice to its ability to investigate or defend the claim. Consequently, Wausau's motion for summary judgment was granted, ordering Old Republic to fulfill its defense and indemnification duties and reimburse Wausau for its costs and interest.