National Union Fire Ins. Co. of Pittsburgh, PA v. 221-223 W. 82 Owners Corp.
The Appellate Division, First Department, reversed a Supreme Court order, granting National Union Fire Insurance Company's motion for summary judgment against JRP Contracting, Inc. The court declared that National Union had no duty to defend or indemnify JRP in an underlying personal injury action. National Union successfully argued that the plaintiff's alleged injuries (ligament and meniscal tears) were not "grave injuries" under Workers' Compensation Law § 11. Additionally, National Union's policy contained an exclusion for "liability assumed under a contract," further absolving it from the contractual indemnification claim. JRP's claim of prejudice due to National Union's withdrawal from defense was also rejected, as National Union had expressly reserved its rights.