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In re Liquidation of Union Indem. v. Spira

Appellate Division of the Supreme Court of New York, First Department
Dec 27, 2001
289 A.D.2d 173 (N.Y. App. Div. 2001)

Opinion

5729

December 27, 2001.

Order, Supreme Court, New York County (Ira Gammerman, J.), entered January 10, 2001, which, in an action by plaintiff liquidator on an investor bond in which the insolvent insurance company agreed to guarantee payment of the promissory note made by defendant to purchase a certain investment and defendant agreed to indemnify the insolvent insurance company for any amount it paid on such guarantee, granted plaintiff's motion for summary judgment to the extent of awarding plaintiff the principal amount of the note, and referring, inter alia, the issue of the reasonable amount of interest and attorneys' fees to a referee, and judgment, same court and Justice, entered January 10, 2001, in favor of plaintiff and against defendant in the principal amount of the note, unanimously affirmed, without costs.

MICHAEL C. SIMMONS, for Plaintiff-Appellant-Respondent.

LARRY KARS, for Defendant-Respondent-Appellant.

Before: Williams, J.P., Tom, Lerner, Buckley, Friedman, JJ.


Defendant's allegations of fraud against the holder bank, the insolvent insurance company and the liquidator are conclusory and otherwise insufficient to raise an issue of fact. We note with regard to the particular allegations made against the insolvent insurance company and the liquidator that a claim of aiding and abetting fraud cannot be predicated upon mere silence (see, King v. Schonberg Co., 233 A.D.2d 242). Defendant's claim that he needs disclosure to particularize his fraud claims amounts to nothing more than a "mere hope" of uncovering sufficient evidence, and is unavailing (see, Frierson v. Concourse Plaza Assocs., 189 A.D.2d 609, 610). In the absence of any fraud, the waiver of defenses clause in the indemnity agreement bars defendant's defenses, which are, in any event, without merit. The motion court properly refused to award the full amount of accrued interest on plaintiff's contractual indemnification claim based upon its finding, after years of supervising this protracted litigation, that plaintiff's litigation tactics unjustifiably prolonged the litigation (cf., generally, American Home Assur. Co. v. Gemma Constr. Co., 275 A.D.2d 616, 619-620, lv dismissed 96 N.Y.2d 791). We have considered and rejected the parties' other arguments for affirmative relief.

THIS CONSTITUTES THE DECISION AND ORDER OF THE SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.


Summaries of

In re Liquidation of Union Indem. v. Spira

Appellate Division of the Supreme Court of New York, First Department
Dec 27, 2001
289 A.D.2d 173 (N.Y. App. Div. 2001)
Case details for

In re Liquidation of Union Indem. v. Spira

Case Details

Full title:IN RE LIQUIDATION OF UNION INDEMNITY INSURANCE COMPANY OF NEW YORK. — THE…

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

Date published: Dec 27, 2001

Citations

289 A.D.2d 173 (N.Y. App. Div. 2001)
736 N.Y.S.2d 1

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