DONALD BRAASCH CONSTRUCTION, INC. v. STATE INSURANCE FUND
Plaintiffs Donald Braasch Construction, Inc. (DBC) and CNA Insurance Company sought a declaration that defendant State Insurance Fund was conditionally obligated to indemnify them in an underlying personal injury lawsuit. The lawsuit stemmed from an accident in March 1994, and the personal injury plaintiffs commenced the lawsuit in April 1995. DBC failed to notify the defendant insurer until May 1997, prompting the defendant to disclaim coverage due to untimely notice. Plaintiffs moved for summary judgment, seeking reimbursement for half of the settlement amount and defense costs in the underlying lawsuit. The Supreme Court denied the motion, finding existing questions of fact regarding the reasonableness of the delay. The Appellate Division affirmed the Supreme Court's order, concluding that there remained triable issues of fact concerning whether DBC's belief in noncoverage for the accident and resultant litigation was reasonable.