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Ghaly v. First American Title Ins. Co., N.Y

Appellate Division of the Supreme Court of New York, Second Department
Apr 19, 1999
260 A.D.2d 535 (N.Y. App. Div. 1999)

Opinion

April 19, 1999

Appeal from the Supreme Court, Nassau County (Lockman, J.).


Ordered that the order is affirmed, with costs.

In 1980 the plaintiffs Nabil N. Ghaly and Mimi B. Ghaly, husband and wife, and Karouzin Mardiros, who is Mimi B. Ghaly's sister and not a party to this action, took title to certain real property as joint tenants. The defendant, First American Title Insurance Company of New York (hereinafter First American, issued a title insurance policy on the property, with the Ghalys and Mardiros as co-insureds. In 1988, Mardiros commenced an action against the Ghalys concerning the property (hereinafter the Mardiros action). First American refused the Ghalys' demand that it defend them in that action, which was settled in 1994. In 1995 the Ghalys commenced this action seeking damages arising from, inter alia, breach of the title insurance contract. The Supreme Court properly granted summary judgment to First American dismissing the complaint.

Scrutiny of the Mardiros action reveals that it did not concern events covered under the terms of the policy of title insurance issued by First American. Accordingly, First American did not breach its contract with the Ghalys when it refused to defend or indemnify them in the Mardiros action ( see, Seaboard Sur. Co. v. Gillette Co., 64 N.Y.2d 304; Lionel Freedman, Inc. v. Glens Falls Ins. Co., 27 N.Y.2d 364; Cohen v. Employers Reins. Corp., 117 A.D.2d 435; American Home Assur. Co. v. Port Auth., 66 A.D.2d 269).

Ritter, J. P., Altman, Goldstein and McGinity, JJ., concur.


Summaries of

Ghaly v. First American Title Ins. Co., N.Y

Appellate Division of the Supreme Court of New York, Second Department
Apr 19, 1999
260 A.D.2d 535 (N.Y. App. Div. 1999)
Case details for

Ghaly v. First American Title Ins. Co., N.Y

Case Details

Full title:NABIL N. GHALY et al., Appellants, v. FIRST AMERICAN TITLE INSURANCE…

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

Date published: Apr 19, 1999

Citations

260 A.D.2d 535 (N.Y. App. Div. 1999)
688 N.Y.S.2d 232

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