White Plains City School District Board of Education v. Merchants Mutual Insurance
The plaintiff initiated legal action against several general liability insurance carriers, seeking a declaration that the carriers were obligated to defend and indemnify it in an underlying negligence case, Denslow v City of White Plains, involving a deceased employee's asbestos-related cancer. Defendants Northern Insurance Company of New York and Merchants Mutual Insurance Company moved for summary judgment, asserting that their policies contained exclusionary clauses for bodily injury to employees arising during employment. Initially, the Supreme Court denied these motions due to perceived ambiguity in the exclusions. However, upon reargument, the court concluded that the exclusionary clauses were unambiguous and should not be interpreted through Workers' Compensation Law, which defines 'course of employment' more narrowly. Consequently, the court reversed its prior decision, granting summary judgment to the defendants and dismissing the complaint and all cross claims against them, citing New York precedent that upholds the plain meaning of such clauses.