Court Decries Plaintiff’s Pursuit of “Windfall” Insurance Coverage in Victory Obtained by Patrick Omilian

Goldberg Segalla obtained a complete dismissal with prejudice of a plaintiff’s complaint seeking accident/sickness coverage under a mortgage insurance policy underwritten by our client. The case was handled by Patrick B. Omilian, an associate in our Buffalo office, and was argued in the New York State Supreme Court, Monroe County.

In this case, the plaintiff’s husband had received accident/sickness coverage under his mortgage insurance policy, but his wife, as a co-borrower, never received such coverage under this policy. Her husband’s accident/sickness coverage terminated when he reached the age of 65. Eight years later, the plaintiff suffered a disability and sought for herself the accident/sickness coverage once held by her husband, and her claim was accordingly denied by our client.

In a decision issued June 29, 2011, the court fully granted the motion for summary judgment requested by our client and the co-defendant mortgage lender, noting that policyholders have a responsibility to understand their availability of coverage—and that failure to do so “should not now mandate a windfall award of cost-free accident/sickness insurance coverage.”