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INDEX NO. 59532/2011
FILED: WESTCHESTER COUNTY CLERK 06/26/2014
NYSCEF DOC. NO. 106
RECEIVED NYSCEF: 06/26/2014
~o commence the statutory
time for appeals as of right
(CPlR 5513[a]), you are
advised to serve a copy
of this order, with notice
of entry, upon all parties.
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF W ESTCHESTER
PRESENT: HON. SAM D. W ALKER, J.S.C.
-----------------------------------------------------------------------------x
LATASHA MARBURY
mm
ccoo
DD..
AANN
BBRR
nnee
mmii
aass
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tthh
PlaintiffS,
Index No. 59532/2011
DECISION & ORDER
Motion Sequence 3
-against-
CHAUCER SYNDICATES, lTD., THE CCl
PARTNERSHIP, llP, ARGENTA HOLDING, PlC.,
LIBERTY SYNDICATES, TALBOT UNDERW RITING
lTD., AON RISK SERVICES NORTHEAST, INC.,
NAVIGATORS INSURANCE COMPANY, AON, lTD.
and DAVID SHIMANOV,
Defendants.
______________________________________________________
------------------------x
CHAUCER SYNDICATES, lTD., THE CCl
PARTNERSHIP, llP, ARGENTA HOLDING, PlC.,
LIBERTY SYNDICATES, TALBOT UNDERW RITING
lTD., AON RISK SERVICES NORTHEAST, INC.,
NAVIGATORS INSURANCE COMPANY
m
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Third-Party Plaintiffs,
Index No.: 59532/2011T
-against-
DAVIT SHIMUNOV,
Third-Party Defendant.
______________________________________________________ ------------------------x
The following papers numbered 1 through 55 were received and considered in
connection with the above-captioned
matter:
in
in O p p o s itio n
A ffir m a tio n
b y S h im a n o v 's
A ffir m a tio n
b y A n n B . S e k e l, E s q .
A tto r n e y
A -C
in O p p o s itio n /E x h ib it
3 1 -3 2
A
b y M o v a n t/E x h ib it
A -N
N o r th e a s t,
In c ./E x h ib it
49
55
A -E
co
M e m o ra n d u m
o f L a w in R e p ly
S u r - R e p ly b y A o n R is k S e r v ic e s
33
3 4 -4 8
P la in tiff's
Am ended
C o m p la in t
P la in tiff's
a lle g e d
in s u r a n c e
F ir s t a n d F o u r th c a u s e s o f a c tio n a s s e r te d
a g a in s t th e U n d e r w r itin g
lo s s is e x c lu d e d
fr o m
c o v e ra g e
a n d ( 2 ) th e P la in tiff b r e a c h e d
O n D ecem ber
C o u r t, W e s tc h e s te r
C o u n ty a g a in s t U n d e r w r itin g
m
co
D.
AN
BR
ne
mi
as
eJ
th
Sum m ons
a n d F ir s t A m e n d e d
a lle g in g
b r e a c h o f c o n tr a c t
to r t- b a d
fa ith b r e a c h
d e fe n d a n ts ,
U n d e r w r itin g
o f a n in s u r a n c e
a n d a lle g in g
A c tio n
n e g lig e n c e
dam ages
D e fe n d a n ts
r e le v a n t a lle g a tio n s
C o m p la in t
a n d s e e k in g
a D e c la r a to r y
A o n L td . a n d s e e k in g
in th e a p p lic a b le
6 , 2 0 1 1 , P la in tiff file d a S u m m o n s
In c ., a n d A o n L td .; O n D e c e m b e r
o n th e g r o u n d
u n d e r th e a p p lic a b le
a w a r r a n ty
N o r th e a s t,
m illio n , a lle g in g
D e fe n d a n ts ,
D e fe n d a n ts ,
2 3 ,2 0 1 1 ,
a n d a s s e r te d
D e fe n d a n ts
e le v e n
and Aon
in th e a m o u n t o f $ 1 m illio n , a lle g in g
dam ages
S p e c ific
d e fe n s e s
a g a in s t a ll
N o r th e a s t,
O n J a n u a ry
F ir s t A m e n d e d
a ffir m a tiv e
in th e a m o u n t o f $ 2 .5
P e r fo r m a n c e
a g a in s t A o n R is k S e r v ic e s
P la in tiff's
in S u p r e m e
P la in tiff file d a n A m e n d e d
p o lic y a n d s e e k in g
a n d s e e k in g
p o lic y .
A o n R is k S e r v ic e s
a g a in s t U n d e r w r itin g
dam ages
th a t ( 1 ) th e
p o lic y o f
a n d C o m p la in t
in th e a m o u n t o f $ 1 m illio n ;
a n s w e re d
in h e r S e c o n d
C o m p la in t,
In c ., a n d
13, 2012,
d e n ie d th e
a n d file d a C r o s s - c la im
m
S 3212
P la in tiff m o v e s b y N o tic e o f M o tio n fo r a n O r d e r p u r s u a n t to C P L R
d is m is s in g
D.
m m
co co
D. D.
AN AN
BR BR
ne ne
mi mi
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th th
R e p ly A ffir m a tio n
b y P la in tiff/E x h ib it
26
2 7 -3 0
AN
A ffir m a tio n
om
E x h ib its A - W
o f L a w in S u p p o r t o f M o tio n
BR
M e m o ra n d u m
ne
N o tic e o f M o tio n /A ffid a v it/A ffir m a tio n /
NUMBERED
1-25
.c
mi
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as
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th
PAPERS
th
2 0 1 2 , A o n R is k S e rv ic e s N o rth e a s t,
d e n ie d th e re le v a n t a lle g a tio n s ,
U n d e rw ritin g
D e fe n d a n t's
file d a T h ird -P a rty
S h im a n o v
("S h im a n o v ");
O n F e b ru a ry
a n d C o m p la in t
O n M a y 1 ,2 0 1 2 ,
Sum m ons
a n d fra u d a g a in s t S h im a n o v
T h ird -P a rty
In c . fo r in d e m n ity .
C o m p la in t
b re a c h o f a n In s u ra n c e
a g a in s t A o n R is k S e rv ic e s
a n d s e e k in g d a m a g e s
D e fe n d a n ts
in th e a m o u n t o f
s e rv e d P la in tiff w ith a n
a n d C o m p la in t, w h ic h d e n ie d th e re le v a n t
d e fe n s e s
a n d C ro s s -c la im s
U n d e rw ritin g
a g a in s t S h im a n o v ;
is s u e d a D e c is io n a n d O rd e r d is m is s in g
P la in tiff's
D e fe n d a n ts
O n D ecem ber
a g a in s t A o n
a ls o s e rv e d a n
2 0 , 2 0 1 2 , th is C o u rt
S e c o n d C a u s e o f A c tio n fo r b a d fa ith
P o lic y ; O n O c to b e r 7 ,2 0 1 3 ,
th e H o n . J o a n B . L e fk o w itz is s u e d
O rd e r; O n O c to b e r 2 8 , 2 0 1 3 , P la in tiff file d a N o te o f Is s u e ; O n
N o v e m b e r 4 , 2 0 1 3 , P la in tiff file d a N o te o f Is s u e c o rre c tin g th e a m o u n t d e m a n d e d
m illio n .
in
m
m
co
D.
AN
BR
ne
mi
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R is k S e rv ic e s N o rth e a s t,
in th e a m o u n t o f
in th e a m o u n t o f $ 1 m illio n , a n d
U n d e rw ritin g
Sum m ons
In c .,
p o lic y a n d s e e k in g d a m a g e s
a n d a lle g in g n e g lig e n c e
a n d a s s e rte d e le v e n a ffirm a tiv e
a T ria l R e a d in e s s
D a v id
A c tio n a n d s e e k in g S p e c ific
In c ., a n d A o n L td . a n d s e e k in g d a m a g e s
A n s w e r to th e S e c o n d A m e n d e d
Am ended
D e fe n d a n ts
A o n R is k S e rv ic e s N o rth e a s t,
a lle g in g b re a c h o f c o n tra c t a n d s e e k in g d a m a g e s
$ 1 m illio n ; O n o r a b o u t M a y 2 4 ,2 0 1 2 ,
a lle g a tio n s
C o m p la in t,
a n d a n s w e re d
P la in tiff file d a S e c o n d A m e n d e d
D e fe n d a n ts ,
a g a in s t a ll d e fe n d a n ts ,
a lle g in g c o n v e rs io n
d e fe n s e s
1 0 , 2 0 1 2 , U n d e rw ritin g
a lle g in g to rt-b a d fa ith , b re a c h o f a n in s u ra n c e
P e rfo rm a n c e
F irs t A m e n d e d
a g a in s t T h ird P a rty D e fe n d a n t,
th e a m o u n t o f $ 2 .5 m illio n , a lle g in g a D e c la ra to ry
N o rth e a s t,
P la in tiff's
O n J a n u a ry 3 0 ,
cmo
Dc.o
ADN.
BARN
nBeR
mnie
amsi
eaJs
tehJ
th
$ 1 m illio n
In c . a n s w e re d
a s s e rte d fifte e n a ffirm a tiv e
a n d C o m p la in t a g a in s t U n d e rw ritin g
a n d D a v id S h im a n o v
In c . a n d A o n L td . fo r in d e m n ity ;
C ro s s -c la im ;
Sum m ons
D.m
ANco
BRD.
neAN
miBR
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thas
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a g a in s t A o n R is k S e rv ic e s N o rth e a s t,
to $ 1
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In th is a c tio n , P la in tiff s e e k s d a m a g e s fo r a n a lle g e d b re a c h o f a n in s u ra n c e
:o n tra c t
d u e to th e U n d e rw ritin g
D e fe n d a n ts
d e n ia l o f c o v e ra g e fo r P la in tiff's
a lle g e d
M a y 2 4 , 2 0 1 1 lo s s o f je w e lry . P la in tiff a lle g e d th a t th is lo s s o c c u rre d w h e n o r a fte r s h e
g a v e o r c o s ig n e d tw o ite m s o f je w e lry to S h im a n o v ,
a je w e lry d e a le r, w h o m s h e a lle g e s
fa ile d to re tu rn th e m to h e r.
It is a lle g e d th a t th e p e rs o n a l je w e lry c o lle c tio n
th
D e fe n d a n ts ,
w a s p ro c u re d to in s u re a p p ro x im a te ly
p o lic y is s u e d b y th e U n d e rw ritin g
$ 2 .5 m illio n o f P la in tiff's je w e lry in a
eJ
b a n k v a u lt. T h e p o lic y c o v e re d th e p e rio d M a y 2 3 , 2 0 1 1 th ro u g h
M ay 22, 2012 and
as
c o v e re d a rtic le s o f je w e lry d e s c rib e d
in a M a rb u ry J e w e lry S c h e d u le
mi
a p p ra is e d
p ro v id e d c o v e ra g e fo r a n y o n e
lo s s o f th e s c h e d u le d
je w e lry k e p t w ith in th e B a n k o f
s a fe d e p o s it b o x . T h e p o lic y a ls o p ro v id e d th a t u p to $ 7 5 0 ,0 0 0
AN
b e re m o v e d fro m th e v a u lt, b u t th e p o lic y e x c lu d e d
14
T h e p o lic y a ls o
BR
A m e ric a
v a lu e o f $ 2 ,4 9 4 ,8 3 1 .0 0 .
ne
ite m s o f je w e lry w ith a g g re g a te
c o m p ris in g
a n y o u t-o f-v a u lt
in je w e lry c o u ld
lo s s fro m c o v e ra g e
D.
u n le s s th e je w e lry w a s b e in g w o rn , b e in g c a rrie d b y h a n d u n d e r th e p e rs o n a l
c o n s ig n e d
a n d tra n s fe rre d
p o s s e s s io n
m
co
o f th e P la in tiff, o r d e p o s ite d
in a lo c k e d s a fe . T h e P la in tiff v o lu n ta rily
m
co
D.
AN
BR
ne
mi
as
eJ
th
s u p e rv is io n
a n d p h y s ic a l c o n tro l to S h im a n o v ,
la d ie s G IA c e rtifie d fa n c y y e llo w o v a l d ia m o n d
a p p ra is e d
v a lu e o f $ 4 5 8 ,3 0 0 .0 0 ,
s h a p e d d ia m o n d
c h a n d e lie r
Ite m 1 1 , a
p a ir o f e a rrin g s w ith a n
a n d Ite m 1 2 , a la d ie s G IA c e rtifie d fa n c y y e llo w p e a r
p e n d a n t w ith a n a p p ra is e d
v a lu e o f $ 4 3 4 ,4 0 0 .0 0 ,
w h o m th e P la in tiff
a lle g e d fa ile d to re tu rn th e ite m s to h e r.
T h e U n d e rw ritin g
e x c lu s io n
D e fe n d a n ts
d e n ie d c o v e ra g e
b a s e d u p o n th e o u t-o f-v a u lt
in th a t th e P la in tiff d id n o t c o m p ly w ith th e p o lic y w a rra n ty
P la in tiff d e p o s it th e in s u re d je w e lry in th e B a n k o f A m e ric a
lo s s
re q u irin g th a t th e
s a fe d e p o s it b o x a s
th
eJ
BR
lo s s in r e s p e c t o f s c h e d u le d
k e p t w ith in a S a fe D e p o s it B o x lo c a te d
NY 10573
anyone
D.
*
p r o v id e s :
m
T h is In s u r a n c e
co
P r o v is io n
EXCLUSIONS
* *
B.
m m
co co
D. D.
AN AN
BR BR
ne ne
mi mi
as as
eJ eJ
th th
lo s s .
T h e E x c lu s io n
d o e s n o t c o v e r:
*
Loss of or dam age
to je w e lr y
o r w a tc h e s
u n le s s s u c h ite m s a r e :
( I) b e in g w o r n o r
( ii,) b e in g c a r r ie d b y h a n d u n d e r th e p e r s o n a l s u p e r v is io n
or
( iii) d e p o s ite d
in a b a n k o r lo c k e d s a fe , u n le s s th e in s u r e d
o f th e in s u r e d
is s ta y in g
at a
h o te l o r m o te l w h e n s u c h ite m s a r e k e p t in th e p r in c ip a l s a fe o f th e
h o te l o r m o te L "
A p a r ty o n a m o tio n fo r s u m m a r y
e s ta b lis h
h is e n title m e n t
to ju d g m e n t
to r e lie f th e m o v in g
absence
5 9 5 , 4 0 4 N .E .2 d 7 1 8 ( 1 9 8 0 ) .
D e p t. 2 0 0 7 ) .
s h o w in g
p a r ty m u s t c o m e fo r w a r d
o f a n y m a te r ia l
" [T ]h e
d e m o n s tr a te
is s u e s o f fa c t,
p ro p o n e n t
o f e n title m e n t
m u s t a s s e m b le
to ju d g m e n t
th e a b s e n c e
T o d e m o n s tr a te
w ith e v id e n tia r y
McDonald v. Mauss,
o f a s u m m a ry
ju d g m e n t
3 8 A .D .3 d
m o tio n
o f a n y m a te r ia l is s u e s o f fa c t,"
p r o o f to
o f N .Y ., 4 9
its e n title m e n t
p r o o f th a t e s ta b lis h e s
th e
7 2 7 , 7 2 8 (2 n d
m u s t m a k e a p r im a fa c ie
a s a m a tte r o f la w , te n d e r in g
5
a ffir m a tiv e
Zuckerman v. City
a s a m a tte r o f la w ,
m
co
D.
AN
BR
ne
mi
as
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th
N .Y .2 d 5 5 7 , 4 2 7 N .Y .S .2 d
ju d g m e n t
m
B o f U S D 7 5 0 ,0 0 0
AN
2 . S u b - lim it fo r E x c lu s io n
co
BR
P ost R oad
P o r t C h e s te r ,
D.
ne
B a n k o f A m e r ic a
4 3 3 B o s to n
a t:
AN
mi
anyone
ne
as
je w e lr y
mi
o f th e P o lic y p r o v id e s :
1 . U S D 2 ,4 9 4 ,8 3 1
SUM INSURED:
ju d g m e n t.
eJ
T h e R is k D e ta ils p r o v is io n
s e e k s u m m a ry
as
D e fe n d a n ts
th
" e q u ir e d . T h e U n d e r w r itin g
s u ffic ie n t
e v id e n c e
to
Alvarez v. Prospect Hosp., 68
O n ly w h e n s u c h a s h o w in g
p a r ty s e t fo r th e v id e n tia r y
W
i n
e
g
r a
d
v
.
N
e
w
Y
o
r k
T h e U n d e r w r itin g
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.
M
e
d
.
C
th e e x is te n c e
6 4 N .Y .2 d 8 5 1 ,8 5 3
t r . ,
c la im th a t P la in tiff's
C o m p la in t
( 1 9 8 6 ) . A ls o , in a d is p u te
v
C
e
is a fu n c tio n
m a y n o t b e c o n s id e r e d
th e fa c e o f th e in s tr u m e n t,
C
r t a
i n
because
u n d e r th e P o lic y . T h e U n d e r w r itin g
c o n tr a c t p r o v is io n
L
F ir s t a n d F o u r th c a u s e o f a c tio n
C
h
i m
a
h e r a lle g e d
D e fe n d a n ts
c o n te n d s
a n d th a t th e in te r p r e ta tio n
fo r th e c o u r t, a n d m a tte r s
n
d
e
r w
r i t e
A
s
s
o
c
.
o v e r in s u r a n c e
r s
a
t
L
v
P
a
u
/ 6
6
N .Y .2 d 5 7 0 , 4 9 8 N .Y .S .2 d
c o v e r a g e , th e in s u r e d
l o
y
d
' s
,
L
o
n
d
is e s ta b lis h e d ,
th a t a n e x c lu s io n
at 1101.
i d
.
T h e P la in tiff a lle g e s th a t w e a r in g
to th e c o n s ig n o r ,
S h im a n o v ,
p r o v id e s c o v e r a g e
is c o v e r e d
fo r o u t- o f- v a u lt
o
n
7 8 A .D .3 d
1 0 9 9 ,9 1 3
a n d c a r r y in g
r e
a
d
N .Y .S .2 d
344
u n d e r th e P o lic y . E x c lu s io n
lo s s e s w h e r e th e lo s s o c c u r r e d
&
B
u
t t e
r ,
2 4 6 (2 d
o f p r o v in g
it p e r s o n a lly
b e in g w o r n , b e in g c a r r ie d b y h a n d u n d e r th e p e r s o n a l s u p e r v is io n
w h e n d e p o s ite d
B
th e in s u r e r b e a r s th e b u r d e n
th e je w e lr y
fr o m
b e a r s th e in itia l b u r d e n
om
m
co
D.
AN
BR
ne
mi
as
eJ
th
D e p t. 2 0 1 0 ) . " O n c e c o v e r a g e
a p p lie s "
of an
w h e n th e in te n t o f th e p a r tie s c a n b e g le a n e d
r t
th a t
e x tr in s ic to th e
th a t th e lo s s c la im e d fa lls w ith in th e s c o p e o f th e P o lic y ,
U
lo s s is
m
c o v e ra g e
m u s t b e d is m is s e d
u n a m b ig u o u s
L
(1 9 8 5 ).
co
P e r fo r m a n c e
P o lic y is c le a r a n d u n a m b ig u o u s
o f e s ta b lis h in g
,
fo r B r e a c h o f C o n tr a c t a n d D e c la r a to r y
th e In s u r a n c e
a g re e m e n t
o f a m a te r ia l is s u e o f fa c t '
m.c
cNoD
DR.A
AeNB
BiRn
nsem
mJia
ahse
eJt
fr o m
i v
h a s b e e n m a d e m u s t th e o p p o s in g
D.
th
e x c lu d e d
n
D e fe n d a n ts
in h e r S e c o n d A m e n d e d
J u d g m e n t/S p e c ific
p r o o f e s ta b lis h in g
omAN
.cBR
NDne
RAmi
eBas
ineJ
smth
N .Y .2 d 3 2 0 , 3 2 4 ( 1 9 8 6 ) .
by hand
B o f th e P o lic y
w h ile th e je w e lr y w a s
o f th e P la in tiff, o r
in a b a n k o r lo c k e d s a fe . H e r e , th e y e llo w d ia m o n d
e a r r in g s
and
p e n d a n t w e r e n o t b e in g w o r n , w e r e n o t b e in g c a r r ie d b y h a n d u n d e r th e P la in tiff's
th
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as
mi
ne
m
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AN
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ne
co
mi
D.
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D. ND
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ne in
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D.
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T h e q u e s tio n
c o n s ig n m e n t
c o n s titu te s
is w h e th e r v o lu n ta rily
co
Do.m
A.Nc
BNRD
nReA
meiB
aisn
esJm
tJha
he
s u p e rv is io n .
h a n d in g h e r je w e lry to S h im a n o v
"c a rrie d b y h a n d u n d e r th e p e rs o n a l s u p e rv is io n
in s u re d ." H e re , th e U n d e rw ritin g
D e fe n d a n ts
c ite ,
on
o f th e
Zimring v English & Am. Ins. Co. 91
A .D .2 d 8 8 9 , 4 5 7 N .Y .S .2 d 5 0 4 (1 s t D e p t.1 9 8 3 ) w h e re th e C o u rt d e n ie d th e in s u re d
c la im b a s e d u p o n th e e x c lu s io n
p ro v is io n , "u n d e r th e P la in tiff's
w h e n th e in s u re d p la c e d a n a tta c h e c a s e c o n ta in in g
a n d le ft th e c a r in th e c a re o f h is c h a u ffe u r w h ile th e in s u re d a n d
mo
.oc
.Dc
ADN
ARN
eRB
enB
mni
msi
Jsa
Jea
teh
th
h is w ife a tte n d e d
th e in s u re d ite m s o f je w e lry in th e
a w e d d in g . T h e a tta c h e c a s e w a s s to le n fro m th e tru n k w h e n th e
in s u re d a n d h is w ife w e re a t th e w e d d in g a n d th e c h a u ffe u r w a s h a v in g d in n e r. T h e
U n d e rw ritin g
D e fe n d a n ts
a ls o c ite d ,
Saritejdiam, Inc. Excessive Insurance Company,
Ltd. et a/., 9 7 1 F .2 d 9 1 0 (2 d C ir. 1 9 9 2 ) fo r th e s a m e p ro p o s itio n . In th is c a s e , th e
in s u re d 's
in d e p e n d e n t
c o n tra c to r
p la c e d a b a g c o n ta in in g
th e in s u re d 's
to p o f a n e m p ty c h a ir n e x t to h im a t a re s ta u ra n t. A fte r fin is h in g
th e c o n tra c to r
in a d v e rte n tly
le ft th e b a g w ith th e d ia m o n d s
S e c o n d C irc u it re a d th e e x c lu s io n
in th e re s ta u ra n t.
in th e lig h t m o s t fa v o ra b le
re lin q u is h e d
m
co
D.
AN
BR
ne
mi
as
eJ
th
w h e n h e w a lk e d o u t o f th e d in e r d o o r."
W h ile th e
to th e in s u re d a n d ru le d in
in te rp re ta tio n
o f th e
m
s a le s m a n
on
a n d p a y in g fo r h is m e a l,
th e in s u re d 's fa v o r, th e C o u rt d id h o ld th a t, "u n d e r a n y re a s o n a b le
P o lic y S a rite jd ia m 's
d ia m o n d s
'c lo s e p e rs o n a l c u s to d y a n d c o n tro l' a t le a s t
Id a t 9 1 2 .
H e re , th e P la in tiff a d m itte d th a t s h e s to p p e d c a rry in g th e p e n d a n t a n d e a rrin g s
w h e n s h e h a n d e d S h im a n o v
th e b la c k J a c o b & C o m p a n y
B a s e d u p o n th e re c o rd , th e P la in tiff d id n o t p e rs o n a lly
s u p e rv is e
b a g w ith th e ite m s . In o th e r w o rd s , th e P la in tiff v o lu n ta rily
8
b a g c o n ta in in g
th e ite m s .
S h im a n o v
c a rry in g th e
tu rn e d o v e r h e r je w e lry to
m
tru n k o f h is a u to m o b ile
p e rs o n a l s u p e rv is io n ,"
c
D. om
AN .c
BR ND
ne RA
mi eB
as in
eJ sm
th a
eJ
th
S h im a n o v a n d re lin q u ish e d
p h ysica l d o m in io n a n d co n tro l to h im . T h e ite m s w e re
n e ith e r lo st n o r m isp la ce d .
F u rth e rm o re ,
e ve n th o u g h th is w a s to b e a co n sig n m e n t,
th e P la in tiff o ffe re d n o a g re e m e n t w ith S h im a n o v to in clu d e d a te o f re tu rn if th e ite m
w a s n o t so ld , th e sp e cific p rice a n d S h im a n o v's
co m m issio n ,
e ith e r b e fo re o r a fte r sh e
tu rn e d h e r je w e lry o ve r to h im . T h e re fo re , th e P la in tiff ce a se d to p e rso n a lly
S h im a n o v's
su p e rvise
ca rryin g o r h a n d lin g o f h e r je w e lry a s so o n a s sh e w a tch e d h im w a lk a w a y
w ith th e je w e lry.
in a b a n k o r lo cke d sa fe ...
m
coom
D..c
ANND
BRRA
neeB
miin
assm
eJJa
the
th
W ith re sp e cte d to th e ite m s b e in g "d e p o site d
,"
P la in tiff is n o t a lle g in g th a t sh e d e p o site d th e ye llo w d ia m o n d e a rrin g s a n d th e p e n d a n t
in a b a n k o r lo cke d sa fe a t th e tim e o f th e lo ss. H o w e ve r, th e U n d e rw ritin g
a rg u e a lte rn a tive ly,
D e fe n d a n ts
th a t th e P la in tiff d id n o t co m p ly w ith th e w a rra n ty to d e p o sit th e
je w e lry va lu e d a t $ 2 ,4 9 4 ,8 3 1
in th e sa fe ty D e p o sit B o x a t B a n k o f A m e rica .
P la in tiff te stifie d a t h e r d e p o sitio n th a t sh e d id n o t re ca ll d e p o sitin g
The
a n y o f h e r je w e lry in
th e sa fe ty d e p o sit b o x b e fo re M a y 2 3 , 2 0 1 1 , th e d a y th e p o licy w e n t in to e ffe ct, n o r d id
sh e re ca ll re m o vin g a n y fro m th e sa fe ty d e p o sit b o x b e tw e e n M a y 1 4 , 2 0 1 1 a n d M a y
2 4 , 2 0 1 1 . In o th e r w o rd s, a s o f M a y 2 4 , 2 0 1 1 , th e P la in tiff h a d th e e a rrin g a n d p e n d a n t
w ith a p p ra ise d va lu e w h ich e xce e d e d th e o u t-o f-va u lt
lim it o u t o f th e sa fe ty d e p o sit b o x
m
co
D.
AN
BR
ne
mi
as
eJ
th
a t h e r h o m e . T h e P la in tiff b y n o t d e p o sitin g th e ite m s in th e sa fe ty d e p o sit b o x
in cre a se d th e risk o f lo ss, d a m a g e , o r in ju ry w ith in th e co ve ra g e o f th e p o licy, th e re b y
d e fe a tin g th e p la in tiff's rig h t to re co ve ry, Fabrikant & Sons v Overton & C o . Customs
Brokers, 2 0 9 A D 2 d 2 0 6 , 6 1 8 N .Y .S .2 d 2 9 4 (1 st D e p t. 1 9 9 4 ).
T h e U n d e rw ritin g
e n title m e n t to ju d g m e n t
D e fe n d a n ts
h a ve m a d e o u t a p rim a fa cie sh o w in g o f
a s a m a tte r o f la w , te n d e rin g su fficie n t e vid e n ce to d e m o n stra te
9
mm
coo
..c
NDD
AAN
BRR
eeB
inn
mmi
ass
JJa
hee
tth
th e a b s e n c e
6 8 N . Y .2 d 3 2 0 , 3 2 4 . T h e b u r d e n
o f a n y m a te r ia l is s u e s o f fa c t, A lv a r e z ,
n o W s h ifts to th e P la in tiff to s e t fo r th e v id e n tia r y
p r o o f e s ta b lis h in g
th e e x is te n c e
of a
material issue,of fact, Winegrad v. New York Univ., 64 N.Y.2d 851,853.
T h e P la in tiff in o p p o s itio n
U n d e r w r itin g
above,
D e fe n d a n ts
" In r e s o lv in g
p o lic ie s ," F ie ld sto n
a r g u m e n ts
in s u r a n c e
th a t h e r lo s s is e x c lu d e d
r e b u ts th e
fr o m th e P o lic y . A s s ta te d
d is p u te s , w e lo o k fir s t to th e la n g u a g e
o f th e a p p lic a b le
P ro p . O w n e r s A ssn ., In c., 1 6 N .Y .3 d 2 5 7 , 2 6 4 . " If th e p la in la n g u a g e
mm
coo
..c
NDD
AAN
BRR
eeB
inn
mmi
ass
JJa
hee
tth
o f th e p o lic y is d e te r m in a tiv e ,
la n g u a g e ."
a r g u e s th a t th e P o lic y its e lf e n tir e ly
w e c a n n o t r e w r ite th e a g r e e m e n t
( Id .) " U n a m b ig u o U S
p la in a n d o r d in a r y m e a n in g ,
la w fo r th e c o u r t,"
p r o v is io n s
o f a n in s u r a n c e
a n d th e in te r p r e ta tio n
b y d is r e g a r d in g
c o n tr a c t m u s t b e g iv e n th e ir
o f s u c h p r o v is io n s
V ig ila n t In s. C o ., 1 0 N .Y . 3 d 1 7 0 , 1 7 7 .
a llo w a n e x te n s io n
o f th e c o v e r a g e
e q u ity a n d to o b v ia te
B re e d v In su ra n ce
o r m o r a l o b lig a tio n ,
o b je c tio n s
s in c e " [e ]q u ita b le
c o n s id e r a tio n s
w h ic h m ig h t h a v e b e e n fo r e s e e n
W a sh in g to n
1
3 5 1 , 4 1 3 N .Y .S .2 d 3 5 2 ( 9 7 8 ) :
T h e P o lic y p r o v id e d fo r c o v e r a g e
lo s s o f th e s c h e d u le d
o f B a n k o f A m e r ic a ,
in o r d e r to d o r a W
a g a in s t,"
W e in b e rg &
In s. C o ., 2 5 4 N .Y . 3 8 7 ( 1 9 3 0 ) .
m
co
D.
AN
BR
ne
mi
as
eJ
th
anyone
its
w ill n o t
a n d g u a rd e d
T h e P la in tiff a g r e e s th a t th e te r m s a n d lim its o f th e c o v e r a g e
a r e fa ir ly s tr a ig h tfo r w a r d .
of
th e c o n tr a c t
to a c c o m p lis h
b e y o n d its fa ir in te n t a n d m e a n in g
C o . o f N . A m . 4 6 N 'y '2 d
H o lm a n v p r o v id e n c e
is a q u e s tio n
I n in te r p r e tin g
te r m s , [t]h is c o u r t m a y n o t m a k e o r v a r y th e c o n tr a c t o f in s u r a n c e
n o tio n s o f a b s tr a c t ju s tic e
th a t
u n d e r th e P o lic y
a m o u n t o f $ 2 ,4 9 4 ,8 3 1
je w e lr y k e p t in a s a fe ty d e p o s it b o x a t a s p e c ifie d
a n d th e s u b - lim it o f $ 7 5 0 ,0 0 0 ,
fo r a n y o n e
lo s S to w h ic h
B a p p lie s . T h e C o u r t a ls o c o n c u r s w ith th e P ia in tiff th a t E x c lu s io n
fo r
b ra n c h
E x c lu s io n
B is n o t a n e x c lu s io n
10
--------
-_
..
-
-
-~-~~~----
b u t ra th e r, lim its c o v e ra g e
E x c lu s io n
u n d e r c e rta in c irc u m s ta n c e s .
B is a ls o fa irly s tra ig h tfo rw a rd .
T h is in s u ra n c e
.
om ND
.c RA
ND eB
RA in
eB sm
in Ja
sm e
th
fro m c o v e ra g e
It s ta te s th a t:
d o e s n o t c o v e r:
"B . L o s s o f o r d a m a g e to je w e lry o r w a tc h e s u n le s s s u c h ite m a re :
th
(I) b e in g w o rn o r
(ii) b e in g c a rrie d b y h a n d u n d e r th e p e rs o n a l s u p e rv is io n
o f th e in s u re d o r
h o te l o r m o te L "
m
T h e o v e ra ll P o lic y w o u ld c o v e r a n y lo s s u n le s s th e c irc u m s ta n c e s
fa lls w ith in E x c lu s io n
o f th e lo s s
B in w h ic h c a s e c o v e ra g e w o u ld b e d e n ie d . T h e re fo re ,
o r d a m a g e fa lls o u ts id e o f E x c lu s io n
if th e lo s s
B , th e n th e P la in tiff w o u ld n o t b e s u b je c t to its s u b -
lim its a n d w o u ld b e c o v e re d to th e fu ll lim it o f th e p o lic y . T h e P o lic y s im p ly s ta te s th a t
s o lo n g a s th e je w e lry is k e p t a t th e B a n k o f A m e ric a ,
$ 2 ,4 9 4 ,8 3 1 .
it is c o v e re d fo r th e e n tire
If th e je w e lry is lo s t w h ile a t B a n k o f A m e ric a th e P o lic y c o v e rs th e e n tire
lo s s . It is o n ly w h e n th e je w e lry is re m o v e d fro m th e B a n k o f A m e ric a
s to le n th e P o lic y w ill c o v e r u p to $ 7 5 0 ,0 0 0 fo r a n y o n e
w ith in E x c lu s io n
s a fe th a t a s u b -
a p p lie s . S o if th e P la in tiff re m o v e s th e je w e lry a n d th e je w e lry is lo s t o r
m
co
D.
AN
BR
ne
mi
as
eJ
th
lim it o f $ 7 5 0 ,0 0 0
B . T h is "o u t o f s a fe /w e a rin g "
lo s s s o lo n g a s it d o e s n o t fa ll
c o v e ra g e o f $ 7 5 0 ,0 0 0
w a s n e g o tia te d
b e tw e e n th e p a rtie s a n d w a s a fu n c tio n o f th e p re m iu m th a t th e P la in tiff p a id .
T h e P la in tiff th e n a rg u e s th a t th e E x c lu s io n B o f th e P o lic y d o e s n o t d e fin e o r
c o n ta in th e te rm "v a u lt" o r "o u t-o f-v a u lt."
A s th e P la in tiff s ta te d , "[U ]n a m b ig u o u s
p ro v is io n s o f a n in s u ra n c e c o n tra c t m u s t b e g iv e n th e ir p la in a n d o rd in a ry m e a n in g ,"
Richner Communications,
Inc. v . Tower Ins. C o . O f N. Y., 7 2 A .D .3 d a t 6 7 1 . T h e p la in
a n d o rd in a ry m e a n in g o f "b e in g w o rn " a n d "b e in g c a rrie d b y h a n d u n d e r th e p e rs o n a l
11
co
m
m co
coD.
D.AN
ANBR
BRne
nemi
mias
aseJ
eJth
(iii) d e p o s ite d in a b a n k o r lo c k e d s a fe , u n le s s th e in s u re d is s ta y in g a t a
h o te l o r m o te l w h e n s u c h ite m s a re k e p t in th e p rin c ip a l s a fe o f th e
cmo
Dc.o
ADN.
BARN
nBeR
mnie
amsi
eaJs
tehJ
th
s u p e rv is io n
o f th e in s u re d ," o r w h e n th e je w e lry is "d e p o s ite d
in a b a n k o r lo c k e d s a fe ,
u n le s s th e in s u re d is s ta y in g a t a m o te l o r h o te l w h e n s u c h ite m S a re k e p t in th e
p rin c ip a l s a fe o f th e h o te l o r m o te l," is th a t E x c lu s io n B a p p lie s w h e n th e je w e lry is n o t
w ith in th e B a n k o f A m e ric a .
C o m m o n s e n s e S u g g e s ts th a t th e je w e lry c a n n o t b e in th e
B a n k o f A m e ric a s a fe a n d a t th e s a m e tim e b e in g in a v a u lt o r s a fe s o m e p la c e e ls e , o r
0
"o u t o f
c o v e ra g e " lim it a s n e g o tia te d b y th e p a rtie s is c le a rly d e fin e d b y th e
m
s a fe /w e a rin g
th e $ 7 5 ,0 0 0
omm
.cco
NDD.
RAAN
eBBR
inne
smmi
Jaas
heeJ
tth
b e in g w o rn o r in a h o te l s a fe a t th e s a m e tim e . T h e re fo re ,
wording of Exception B.
T h e P la in tiff a ls o c h a lle n g e d th e "c o v e r"
p ro v is io n o f th e P o lic y b e c a u s e
lo c a tio n o r te rrito ria l lim its a re s h o w n in th e s c h e d u le
no
a n d a s s u c h a n a m b ig u ity is
c re a te d c o n c e rn in g th e P o lic y 's c o v e ra g e . T h is a rg u m e n t is a ls o w ith o u t m e rit. J u s t a s
th e P la in tiffs
c u rre n t c la im is b a s e d u p o n a N e W Y o rk C ity lo s s , if th e P la in tiff c h o s e to
tra v e l to th e re m a in in g
c o n tin e n ts
o r to th e m o o n s h e w o u ld s till b e c o v e re d u n d e r th e
p o lic y . If th e re is n O lim ita tio n lis te d th e n th e P o lic y c o v e rs lo s s o c c u rrin g "a n y w h e re "
p a rtic u la rly w ith in d iv id u a ls
m
co
D.
AN
BR
ne
mi
as
eJ
th
a n d "e v e ry w h e re "
a t th e in c o m e le v e l o f th e P la in tiff.
T h e P la in tiff g o e s o n to a rg u e th a t s in c e E x c lu s io n
je w e lry is d e p o s ite d
B (iii) c o v e r lo s S "w h ile th e
in a b a n k o r lo c k e d s a fe ," th e n th e s u b -lim it fo r E x c lu s io n B is n o t a
s u b -lim it fo r E x c lu s io n B b e c a u s e
o r lo c k e d s a fe to $ 7 5 ,0 0 0
0
it lim its th e re c o v e ry fo r lo s s if th e je w e lry is in a b a n k
a n d n o t th e $ 2 ,4 9 4 ,8 3 1 .
H o w e v e r, th is is n o t th e c a s e . T h e
R is k D e ta ilS o f th e P o lic y c le a rly s ta te s th a t to re c o v e r $ 2 ,4 9 4 ,8 3 1
fo r a n y o n e
lo s s , th e
je w e lry m u s t b e k e p t w ith in a S a fe D e p o s it B o x lo c a te d a t B a n k o f A m e ric a , 4 3 3 B o s to n
P o s t R o a d , P o rt C h e s te r N Y 1 0 5 7 3 . E x lc u s io n B (iii) m a k e s n o re fe re n c e to th e B a n k o f
t> .m e ric a , b u t it g o e s o n to c la rify w h e n "o u t o f s a fe /w e a rin g "
12
c o v e ra g e w ill b e a v a ila b le .
th
eJ
as
th
It s ta te s th a t if th e je w e lry is d e p o s ite d
in a n y b a n k o r lo c k e d s a fe
other than at the
mi
eJ
Bank o f America, th e re w ill b e n o c o v e ra g e "u n le s s th e in s u re d is s ta y in g a t a h o te l o r
ne
as
m o te l w h e n s u c h ite m s a re k e p t in th e p rin c ip a l s a fe o f th e h o te l o r m o te L " In o th e r
BR
mi
m
E x c lu s io n B .
T h e P la in tiff's a rg u m e n t
in s ta n c e a n d th e la n g u a g e
a n d n o t th e $ 7 5 0 ,0 0 0
h a s n o m e rit. E x c lu s io n
is c le a r a n d u n a m b ig u o u s .
tra n s fe r o f th e je w e lry to S h im a n o v .
It is u n d is p u te d
je w e lry w h ile d riv in g to m e e t S h im a n o v ,
s u b -lim it o f
B c le a rly a p p lie s in th is
T h e o n ly re m a in in g
th e C o u rt to a d d re s s is w h e th e r th e P la in tiff ra is e d a n y q u e s tio n s
q u e s tio n fo r
o f fa c t re g a rd in g
her
th a t th e P la in tiff w a s w e a rin g th e
re m o v e d th e ite m s a n d p la c e d th e m in a b a g
w h e n s h e a rriv e d a t h is o ffic e , a n d h a n d e d th e m to S H im a n o v . T h is w a s a v o lu n ta rily
m
co
D.
AN
BR
ne
mi
as
eJ
th
tra n s fe r a n d o n c e S h im a n o v
to o k p o s s e s s io n
m e a n in g o f th e la n g u a g e o f E x c lu s io n
o f th e je w e lry th e p la in a n d o rd in a ry
B (ii) w o u ld s u g g e s t th a t th e je w e lry w a s n o
lo n g e r b e in g w o rn , c a rrie d b y h a n d o r b e in g p e rs o n a lly
Richner Communications,
s u p e rv is e d
b y th e in s u re d ,
Inc., 7 2 A . D . 3 d a t 6 7 1 .
T h e P la in tiff a rg u e s th a t th e lo s s o c c u rre d a t th e m o m e n t th e P la in tiff h a n d e d
S h im a n o v th e ite m s u n d e r th e m is ta k e n
b e lie f th a t h e w o u ld e n d e a v o r to s e ll th e m o n
13
m
th e p la in la n g u a g e to
T h e P la in tiff a ls o a rg u e s th a t b a s e d u p o n th e P o lic y s h e is e n title d to re c o v e r th e
a c tu a l v a lu e o f h e r lo s s w h ic h is $ 8 9 2 ,7 0 0 .0 0
co
a n d m is in te rp re tin g
co
s u it h e r n e e d s .
a n d th e P la in tiff is try in g to
m
co om
D. .c
AN ND
BR RA
ne eB
mi in
as sm
eJ Ja
ththe
c o n fu s e a n d m is le a d th e C o u rt b y m is re a d in g
D.
B is c le a r a n d u n a m b ig u o u s
D.
in th e E x c lu s io n
AN
o th e r th a n a t th e B a n k o f A m e ric a , w h ic h w o u ld m a k e it a n "o u t o f s a fe lo s s ."
T h e la n g u a g e
AN
B o f th e P o lic y . S o th e la n g u a g e c le a rly a p p lie s to b a n k o r lo c k e d s a fe
BR
u n d e r E x c lu s io n
ne
w o rd s , if th e P la in tiff c la im s a lo s s fro m h e r lo c k e d s a fe a t h o m e , it w o u ld b e e x c lu d e d
om
.c
ND
RA
B
ne
mi
as
eJ
th
h e r b e h a lf. H o w e v e r, th e re is n o th in g in th e re c o rd to s u p p o rt S h im a n o v 's
th e je w e lry . In fa c t, th e N e w Y o rk C ity P o lic e D e p a rtm e n t
d e te rm in in g
S h im a n o v
fu n c tio n
th a t th e P la in tiff's
a lle g a tio n s
in te n t to s te a l
v o id e d th e p o lic e re p o rt a fte r
w e re a c iv il a n d n o t a c rim in a l m a tte r. A ls o ,
h im s e lf te s tifie d th a t h e re tu rn e d th e J e w e lry to th e P la in tiff. S in c e th e c o u rt's
o n a m o tio n fo r s u m m a ry ju d g m e n t
d e te rm in a tio n ,
is "is s u e fin d in g " ra th e r th a n is s u e
Sillman v. Twentieth Century-Fox
Film Corp.,
3 N .Y .2 d 3 9 5 ,4 0 4
(1 9 5 7 ),
th e C o u rt w ill n o t a tte m p t to a d d re s s th e d is p u te b e tw e e n th e P la in tiff a n d S h im a n o v .
p ro v is io n s
o f a n in s u ra n c e
m
co
D.
AN
BR
ne
mi
as
eJ
th
is s im p ly u p to th e C o u rt to in te rp re t th e u n a m b ig u o u s
Vigilant Ins. Co.,
c o n tra c t b y g iv in g th e s e p ro v is io n s th e ir p la in a n d o rd in a ry m e a n in g ,
1 0 N .Y .3 d 1 7 0 , 1 7 7 . E x c lu s io n
d o e s n o t p ro v id e p ro te c tio n
B is c le a r a s to th e lim it o f P la in tiff's
to v o lu n ta rily
It
c o v e ra g e
a n d it
c o n s ig n in g je w e lry fo r s a le .
T h e P la in tiff s e e m s to b e o f th e o p in io n th a t a lle g in g a th e ft o r ro b b e ry w o u ld
c re a te a q u e s tio n
o n ly a d d re s s e s
s u p e rv is io n
o f fa c t fo r a ju ry . B u t E x c lu s io n
lo s s w h e n th e je w e lry
u n d e r a n y o f th e s e c irc u m s ta n c e s
In o th e r w o rd s , if th e th e ft o r ro b b e ry , o c c u rre d
D e fe n d a n ts
w o u ld c le a rly b e
T h a t n o t b e in g th e c a s e , th e P la in tiff h a s fa ile d to s e t fo rth e v id e n tia ry
p ro o f e s ta b lis h in g
D e fe n d a n ts
in a b a n k o r lo c k e d s a fe a t a h o te l o r
th e n th e U n d e rw ritin g
m
co
D.
AN
BR
ne
mi
as
eJ
th
re s p o n s ib le .
is b e in g w o rn , c a rrie d b y h a n d u n d e r th e p e rs o n a l
o f th e in s u re d o r w h e n it is d e p o s ite d
m o te l o th e r th a n th e B a n k o f A m e ric a .
B w h ic h is th e s u b je c t o f th is m o tio n
th e e x is te n c e
o f a m a te ria l is s u e o f fa c t. T h e U n d e rw ritin g
m o tio n fo r s u m m a ry ju d g m e n t
w ith re s p e c t to th e F irs t a n d F o u rth C a u s e o f
A c tio n is g ra n te d .
T h e p a rtie s a re d ire c te d to a p p e a r b e fo re th e S e ttle m e n t
9 1 4 -8 2 4 -5 3 5 0 o n ~ 2 0 1 4
a t 9 :.$ .m
14
C o n fe re n c e
P a rt,
in C o u rtro o m 1 6 0 0 . T o th e e x 1 e n !
m
co
D.
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any relief requested in Motion Sequence 3 was not addressed by the Court, it is hereby
deemed denied.
The foregoing constitutes the Opinion, Decision and Order of the
Court.
Dated: White Plains, New York
June 23, 2014
SL. ~
Clut
N. SAM D. WALKER, J.S.C.
m
co
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as
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15