Thomson v. Power Authority
Edward Thomson, Jr. suffered an injury while working for Crouse Nuclear Energy Services, Inc. at a Power Authority of the State of New York plant. Following Thomson's lawsuit and Crouse's bankruptcy, Power Authority commenced a second third-party action against Crouse's insurers, Zurich-American Insurance Company and Central National Insurance Company of Omaha, seeking a declaration of their duty to defend and indemnify. The appellate court reversed the IAS Court's denial of summary judgment, granting it to the insurers. The court determined that both insurers had not received timely notice of the lawsuit, as required by policy or implied by law, thereby vitiating their duty to defend or indemnify Crouse. The insurers' defense of untimely notice in their pleadings was deemed a sufficient disclaimer.