Opinion ID: 6985048
Heading Depth: 3
Heading Rank: 3

Heading: Willful and Avowed Obstruction

Text: Since HARRG never attempted to persuade NYCHA to cooperate, NYCHA’s failure to cooperate falls short of willful and avowed obstruction. However, HARRG argues that there is a difference between passive and active obstruction, and that only in the former circumstance must an insurance company take steps to seek further cooperation. In cases where the insured made material misrepresentations, for instance, New York courts have allowed the insurer to disclaim without diligently seeking cooperation. See, e.g., State Farm Mut. Auto. Ins. Co. v. Brown, 21 A.D.2d 742, 250 N.Y.S.2d 244 (4th Dep’t 1964) (holding that insured’s false statements “prejudiced the insurer” and constituted “ ‘willful and avowed obstruction’ ”) (citation omitted). However, HARRG does not cite any case recognizing a difference between passive and active obstruction as a general matter, and the cases it cites can easily be distinguished because the insured’s action prejudiced the insurer. Here, had HARRG quickly persuaded NY-CHA to alter its position, settlement negotiations might still have taken place.