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Grasso v. Country-Wide Insurance Company

Appellate Division of the Supreme Court of New York, First Department
Jul 2, 1987
132 A.D.2d 451 (N.Y. App. Div. 1987)

Opinion

July 2, 1987

Appeal from the Supreme Court, New York County (Kirschenbaum, J.).


Plaintiff sought judgment declaring the rights of the parties under a liability insurance policy issued by defendant Country-Wide Insurance and sought to have that company defend and indemnify in connection with an action brought by G S Transport, the owner of another vehicle involved in an accident on December 14, 1983. Country-Wide had denied coverage, relying on a purportedly mailed notice of cancellation. Supreme Court properly found the cancellation notice to be defective. (Vehicle and Traffic Law § 313; Nassau Ins. Co. v. Murray, 46 N.Y.2d 828.)

Supreme Court awarded the plaintiff's attorney's fees in the amount of $7,500. This included counsel's charges for the prosecution of the action here on appeal, as well as for the defense of the Civil Court action pending in Queens County. The award was based on 82.25 hours of professional services at an hourly rate of approximately $91. Of this total, 15.75 hours were devoted to the defense of the Civil Court action. The charges for those hours would total $1,436. The holder of an insurance policy is not entitled to recover legal fees and expenses for the prosecution of a declaratory judgment action against an insurer, but only those necessitated when he has been cast in a defensive posture by legal steps taken by an insurer in an effort to free itself from its policy obligations. (Mighty Midgets v. Centennial Ins. Co., 47 N.Y.2d 12; Matter of Aetna Cas. Sur. Co. v Dawson, 84 A.D.2d 708 [1st Dept 1981], affd 56 N.Y.2d 1022.)

Concur — Sullivan, J.P., Carro, Kassal, Rosenberger and Wallach, JJ.


Summaries of

Grasso v. Country-Wide Insurance Company

Appellate Division of the Supreme Court of New York, First Department
Jul 2, 1987
132 A.D.2d 451 (N.Y. App. Div. 1987)
Case details for

Grasso v. Country-Wide Insurance Company

Case Details

Full title:MIKE GRASSO et al., Respondents, v. COUNTRY-WIDE INSURANCE COMPANY…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Jul 2, 1987

Citations

132 A.D.2d 451 (N.Y. App. Div. 1987)

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