Zurich-American Insurance v. Atlantic Mutual Insurance

Majority

p. 621

Zurich-American Insurance Companies, Respondent, v Atlantic Mutual Insurance Companies et al., Doing Business as The Atlantic Companies, Appellants.

Argued March, 22, 1989;

decided May 2, 1989

p. 622

APPEARANCES OF COUNSEL

Howard. R. Cohen and Sidney Rosen for appellants.

Ignatius John Melito and S. Dwight Stephens for respondent.

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OPINION OF THE COURT

Memorandum.

The order of the Appellate Division should be affirmed, with costs.

We agree with the majority at the Appellate Division that, because Atlantic’s policies extended coverage to employees of the church, the allegations in the complaints that injuries were caused by the putative individual insureds while acting in the church’s employ triggered Atlantic’s obligation to defend (see, Seaboard Sur. Co. v Gillette Co., 64 NY2d 304 , 310). As the court noted, the answers of those individuals, denying that they were church employees, merely posed factual and legal issues to be resolved in the underlying actions.

Chief Judge Wachtler and Judges Simons, Alexander, Titone, Hancock, Jr., and Bellacosa concur; Judge Kaye taking no part.

Order affirmed, with costs, in a memorandum.

Cases cited

Seaboard Surety Co. v. Gillette Co. 64 NY2d 304 N.Y. 1984-12-27 at 310 p. 623