Shants Inc. v. Capital One
Justice Daniel Palmieri
Defendant MRW Group moved for summary judgment declaring that a certain fire insurance policy issued by codefendant Tower Insurance Company of New York was in full force and effect on the date of a fire at plaintiff Shants Inc.'s premises and that Tower, therefore, owed coverage under the policy. The court denied MRW's motion with regard to Tower's coverage for Shants' loss, as the policy was cancelled and an issue of fact existed as to reinstatement. The court granted partial summary judgment to Tower and declared that Shants' policy was properly cancelled by Tower for nonpayment of the premium. The court found that Shants received a notice of cancellation, that the notice complied with the requirements of Insurance Law §3426(c), (h) and (i) as to Shants, as the insured, and the premium was not paid before the effective date of the cancellation contained in the notice. The court, therefore, concluded that MRW failed to make out its prima facie case that the notice was ineffective as to Shants, adding that Insurance Law §3426 did not require notice to the mortgagee for a notice of cancellation of a commercial policy such as the one at bar to be effective.