Opinion
January 28, 1993
Appeal from the Supreme Court, New York County (Shirley Fingerhood, J.).
Where plaintiff, a closely held corporation, seeks to recover the $160,000 face value of a fire insurance policy covering premises owned by it and defendant insurer raises the defense of arson, special circumstances are presented warranting the disclosure of the personal income tax returns of its two named principals inasmuch as their financial condition is clearly relevant and material to defendant in its investigation of plaintiff's claim (see, 2423 Mermaid Realty Corp. v. New York Prop. Ins. Underwriting Assn., 142 A.D.2d 124, 132, lv denied 74 N.Y.2d 607), particularly where they exercise 90% control and the third principal is the corporation's fictitious namesake. However, in light of the fact that the fire occurred on December 5, 1987, disclosure of their 1988 tax returns appears unwarranted.
Concur — Wallach, J.P., Kupferman, Kassal and Rubin, JJ.