Case Name: Laura Accessories, Inc., Plaintiff, v. A.P.A. Warehouses, Inc., Appellant. Gwertzman, Pfeffer, Toker & Lefkowitz et al., Respondents
Court: New York Supreme Court, Appellate Division
Jurisdiction: New York
Decision Date: 1988-05-10
Citations: 140 A.D.2d 182
Docket Number: 
Parties: Laura Accessories, Inc., Plaintiff, v A.P.A. Warehouses, Inc., Appellant. Gwertzman, Pfeffer, Toker & Lefkowitz et al., Respondents.
Judges: 
Reporter: Appellate Division Reports
Volume: 140
Pages: 182–182

Head Matter:
(May 10, 1988)
Laura Accessories, Inc., Plaintiff, v A.P.A. Warehouses, Inc., Appellant. Gwertzman, Pfeffer, Toker & Lefkowitz et al., Respondents.

Opinion:
APA's insurance company assigned counsel to represent APA in this action by a lessee of APA's warehouse for damages from losses due to burglary at the warehouse. Counsel moved to withdraw on the grounds that APA violated the terms of the insurance policy by failing to notify the insurance company of the claim as soon as practicable.
The right to deny coverage is not properly tested by a motion of counsel to withdraw. The issue can only be resolved by a declaratory judgment action in which the defendant would be able to adequately litigate the facts of its disclaimer. The IAS court's decision, in effect, validated the disclaimer without the opportunity of the insured to be heard. (Brothers v Burt, 27 NY2d 905; Monaghan v Meade, 91 AD2d 1014, 1015; Presley v Williams, 57 AD2d 947.) Concur — Murphy, P. J., Ross, Kassal and Rosenberger, JJ.