Case ID: ny_245/html/0547-01.html
Source: Caselaw Access Project
Author: {"author": "", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

Guiseppe Falco et al., Appellants, v. Zurich General Accident and Liability Insurance Company, Ltd., Respondent.
    (Submitted March 30, 1927;
    decided May 3, 1927.)
    
      Insurance (liability) — refusal by company to defend action or pay judgment recovered — arrest and confinement of policyholder on body execution for failure to pay judgment — action against company to recover damages — provision in policy that action may be maintained only to recover money paid in satisfactioti of judgment.
    
    
      Falco v. Zurich General Accident & Liability Ins. Co., 216 App. Div. 721, affirmed.
    Appeal from a judgment of the Appellate Division of the Supreme Court in the second judicial department, entered July 16, 1926, affirming a judgment in favor of defendant entered upon a dismissal of the complaint on the opening by the court at a Trial Term. The action was to recover upon a policy of liability insurance. The complaint alleged that defendant issued its policy insuring against liability for accident in and about certain premises; that plaintiffs purchased the premises and the policy was transferred to them; that a third party was injured by a fall on the sidewalk and that defendant was notified to defend but refused to do so; that a judgment was recovered against plaintiff which he could not pay and he was arrested and confined under a body execution. The policy contained the following clause: “No action for the indemnity against loss provided for in Agreement 1 of this policy shall lie against the Company, except for reimbursement of the amount of loss actually sustained and paid in money by the assured in full satisfaction of a judgment duly recovered against the assured after trial of the issue.”
    
      Benjamin C. Ribman for appellants.
    
      Edward P. Lyon and Harold S. Lyon for respondent.
   Judgment affirmed, with costs; no opinion.

Concur: Cardozo, Ch. J., Pound, Crane, Andrews, Lehman, Kellogg and O’Brien, JJ.