New York University v. Arma Scrap Metal

Insurance Law

New York Law Journal


Justice Saliann Scarpulla

New York University (NYU) sought a declaratory judgment that the insurance company defendants were obligated to defend and indemnify NYU in a personal injury action currently pending in Kings County. Hamer, an employee of Arma Scrap Metal, was injured while working on a construction project at certain premises owned by NYU. At the time of the occurrence, Arma was performing demolition work at the premises pursuant to a written agreement with NYU. The provisions of that agreement required Arma to obtain a commercial general liability insurance policy endorsed to include NYU as an additional insured in connection with any work to be performed under the agreement. Arma was then covered by such policy issued by Northfield Insurance, as well as by an excess policy of insurance issued by National Union. Northfield argued that the policy's Contracted Persons Exclusion precluded coverage of Hamer's bodily injury claims. The court granted Northfield's motion for summary judgment, finding that the provisions of the Contracted Persons Exclusion in the Northfield policy barred coverage to NYU in the underlying action.

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