Stack's Rare Coins v. Federal Insurance

Full title: STACK'S RARE COINS, Appellant, v. FEDERAL INSURANCE COMPANY, Respondent

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

Date published: Dec 2, 1993

199 A.D.2d 17 (N.Y. App. Div. 1993)

604 N.Y.S.2d 108

Opinion

December 2, 1993

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

Since the applicable policies exclude damage to the property of others while in the care, custody or control of plaintiff, defendant had the right to disclaim and not defend when plaintiff was sued for damage to a rare coin consigned to it. The rule is not otherwise merely because the insurer independently acquires knowledge that the allegations of the complaint may not be true (Chmiel v Continental Cas. Co., 177 A.D.2d 1022).

Assuming, arguendo, that defendant was obliged to defend, it discharged that obligation by virtue of its payment, resulting in an accord and satisfaction, to the law firm retained by plaintiff.

Concur — Sullivan, J.P., Carro, Rosenberger, Ross and Asch, JJ.