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Case Study

Insurer Wins Summary Judgment for Rescission of Policies in Case of Material Misrepresentation

July 19, 2018
Sharon Angelino

A New York State insurer won a summary judgment in the U.S. District Court for the Eastern District of New York granting rescission of its commercial and general liability policies due to the policyholder’s material misrepresentations. Sharon Angelino, a partner in the Global Insurance Services Practice Group, handled the matter.

The action arose from a state court lawsuit by an employee of the insured, a steel manufacturing company, for injuries he sustained while installing metal decking on a 12-story storage facility in Long Island. The action revealed that the insured had made several material misrepresentations under New York State Insurance Law §3105(a) — notably that the company did not perform work above two stories, and that it produced primarily “artisan” decorative materials. The insured additionally misrepresented its payroll, receipts and sales, and clientele.

Sharon submitted a motion for summary judgment. The judge agreed with our client and granted the motion, rescinding and voiding the insured’s policies.