American Motorists Ins. v. Napco Sec. Sys

Full title: AMERICAN MOTORISTS INSURANCE COMPANY, Appellant, v. NAPCO SECURITY…

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

Date published: Nov 13, 1997

244 A.D.2d 197 (N.Y. App. Div. 1997)

665 N.Y.S.2d 273

Opinion

November 13, 1997

Appeal from the Supreme Court, New York County (Louise Gruner Gans, J.).

Under the subject indemnity agreements, upon the demand for payment on the bonds by the United States Customs Service, plaintiff surety was entitled to seek a posting of collateral by defendants, as well as attorneys' fees incurred as a consequence thereof; however, the attorneys' fees must be reasonable (see, International Bus. Machs. Corp. v. Murphy O'Connell, 183 A.D.2d 681, appeal dismissed 81 N.Y.2d 783). We agree with the motion court that the record demonstrates that the fees demanded by plaintiff were needlessly incurred as well as inflated, thus warranting dismissal of plaintiff's claim for attorneys' fees, its only remaining claim.

Concur — Sullivan, J. P., Milonas, Wallach, Williams and Tom, JJ.