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“Grouping of Contacts” Analysis to Determine Which State’s Law Applies

The First Department noted Supreme Court correctly applied the “grouping of contacts” analysis in determining whether New York or Maryland law applied in an action to determine which insurance company was required to defend and indemnify.  The First Department further noted that late notice to the carrier because of the need to investigate did not warrant the carrier’s disclaimer of coverage.  Addressing the “grouping of contacts,” the court explained:

The motion court correctly determined that, under the standard “grouping of contacts” analysis, New York law, rather than Maryland law, applies in this case …. Indeed, the subcontract between Hayward Baker and Schiavone involved construction services at a site located in New York, Schiavone formed a joint venture in New York to perform those services, the accident and resulting litigation occurred in New York, Zurich asserts that it is a New York corporation with a home office in New York, Illinois National is licensed to do business in New York, and the demand letters and responses were sent from the parties’ New York offices … .  Illinois Natl Ins Co v Zurich Am Ins Co, 2013 NY slip Op 04881, 1st Dept 6-27-13

 

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