Opinion
607 CA 19-02071
10-09-2020
DOWNSTAIRS CABARET, INC., Plaintiff-Respondent, v. WESCO INSURANCE COMPANY, Defendant-Appellant.
MOUND COTTON WOLLAN & GREENGRASS LLP, NEW YORK CITY (KEVIN F. BUCKLEY OF COUNSEL), FOR DEFENDANT-APPELLANT.
MOUND COTTON WOLLAN & GREENGRASS LLP, NEW YORK CITY (KEVIN F. BUCKLEY OF COUNSEL), FOR DEFENDANT-APPELLANT.
PRESENT: CENTRA, J.P., LINDLEY, TROUTMAN, WINSLOW, AND DEJOSEPH, JJ.
MEMORANDUM AND ORDER
It is hereby ORDERED that the order so appealed from is unanimously reversed on the law without costs, the motion is granted, and the complaint insofar as it seeks to recover for actual loss of business income is dismissed.
Memorandum: Plaintiff commenced this breach of contract action contending, inter alia, that defendant was required pursuant to the terms of its insurance contract with plaintiff to pay for damage to plaintiff's property caused by flooding and for plaintiff's loss of business income. Defendant appeals from a decision denying its motion for partial summary judgment dismissing plaintiff's claim to recover its actual loss of business income on the grounds that the insurance contract was ambiguous and that issues of fact exist whether defendant is estopped from denying business income coverage. As a preliminary matter, although "[n]o appeal lies from a mere decision" ( Kuhn v. Kuhn , 129 A.D.2d 967, 967, 514 N.Y.S.2d 284 [4th Dept. 1987] ; see generally CPLR 5501 [c] ; 5512 [a] ), we conclude that the paper appealed from meets the essential requirements of an order (see Nicol v. Nicol , 179 A.D.3d 1472, 1473, 118 N.Y.S.3d 833 [4th Dept. 2020] ). We therefore treat it as such (see id. ), and we reverse.
"An insurance agreement is subject to principles of contract interpretation" ( Universal Am. Corp. v. National Union Fire Ins. Co. of Pittsburgh, Pa. , 25 N.Y.3d 675, 680, 16 N.Y.S.3d 21, 37 N.E.3d 78 [2015] ). "As with the construction of contracts generally, ‘unambiguous provisions of an insurance contract must be given their plain and ordinary meaning, and the interpretation of such provisions is a question of law for the court’ " ( Vigilant Ins. Co. v. Bear Stearns Cos., Inc. , 10 N.Y.3d 170, 177, 855 N.Y.S.2d 45, 884 N.E.2d 1044 [2008] ). "Whether a contractual term is ambiguous must be determined by looking within the four corners of the document and not to extrinsic sources" ( Slattery Skanska Inc. v. American Home Assur. Co. , 67 A.D.3d 1, 14, 885 N.Y.S.2d 264 [1st Dept. 2009] ). "Ambiguity in a contract arises when the contract, read as a whole, fails to disclose its purpose and the parties' intent" ( Ellington v. EMI Music, Inc. , 24 N.Y.3d 239, 244, 997 N.Y.S.2d 339, 21 N.E.3d 1000 [2014] ), or where its terms are subject to more than one reasonable interpretation (see generally Dean v. Tower Ins. Co. of N.Y. , 19 N.Y.3d 704, 708, 955 N.Y.S.2d 817, 979 N.E.2d 1143 [2012] ).
We agree with defendant that the insurance contract unambiguously does not include coverage for actual loss of business income. The contract provides coverage "as described and limited" for certain categories of loss "for which a Limit Of Insurance is shown in the Declarations." Actual loss of business income, however, is neither described nor limited by the declarations. Thus, there is no actual loss of business income coverage "by reason of ‘lack of inclusion’ " ( Zappone v. Home Ins. Co. , 55 N.Y.2d 131, 137, 447 N.Y.S.2d 911, 432 N.E.2d 783 [1982] ), and "the policy as written could not have covered the liability in question under any circumstances" ( id. at 134, 447 N.Y.S.2d 911, 432 N.E.2d 783 ; see Black Bull Contr., LLC v. Indian Harbor Ins. Co. , 135 A.D.3d 401, 403, 23 N.Y.S.3d 59 [1st Dept. 2016] ).
We agree with defendant's further contention that it is not estopped from denying coverage. "Where, as here, there is no coverage under the policy, the doctrines of waiver and estoppel may not operate to create such coverage" ( Charlestowne Floors, Inc. v. Fidelity & Guar. Ins. Underwriters, Inc. , 16 A.D.3d 1026, 1027, 791 N.Y.S.2d 748 [4th Dept. 2005] ; see generally Merchants Mut. Ins. Group v. Travelers Ins. Co. , 24 A.D.3d 1179, 1182, 806 N.Y.S.2d 813 [4th Dept. 2005] ).