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Farmland Market Corp. v. N. River Ins. Co.

Appellate Division of the Supreme Court of New York, First Department
Nov 1, 1984
105 A.D.2d 602 (N.Y. App. Div. 1984)

Opinion

November 1, 1984

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


The trial court's reliance upon section 172 Ins. of the Insurance Law in calculating interest from the date of loss was erroneous. Section 172 simply provides that the failure of an insured to file proofs of loss shall not be deemed to invalidate any claim of the insured unless after such loss the insurer gives written notice that it desires proofs of loss and the insured thereafter fails to submit such proofs. Thus it simply protects the insured's claim when he has not filed a proof of loss and the insurer has not requested submission of such claim.

The policies involved herein, in conformity with section 168 Ins. of the Insurance Law, provide: "The amount of loss for which this Company may be liable shall be payable sixty days after proof of loss, as herein provided, is received by this Company". Plaintiff filed its proofs of loss with defendants on March 15, 1978. By the express terms of the policies then, the amount of loss for which the defendants are liable was not payable until 60 days thereafter.

Interest upon a loss payable under a fire insurance policy is not recoverable before the payment of principal is due pursuant to the policy (see 31 N.Y. Jur, Insurance, § 1396). Accordingly, interest herein should be calculated as of 60 days after the submission of the proofs of loss by plaintiff.

Settle order.

Concur — Kupferman, J.P., Ross, Asch, Fein and Alexander, JJ.


Summaries of

Farmland Market Corp. v. N. River Ins. Co.

Appellate Division of the Supreme Court of New York, First Department
Nov 1, 1984
105 A.D.2d 602 (N.Y. App. Div. 1984)
Case details for

Farmland Market Corp. v. N. River Ins. Co.

Case Details

Full title:FARMLAND MARKET CORP., Respondent, v. NORTH RIVER INSURANCE Co. et al.,…

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

Date published: Nov 1, 1984

Citations

105 A.D.2d 602 (N.Y. App. Div. 1984)

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