The Second Department, reversing Supreme Court, determined plaintiff insurer was not required to satisfy the injured party's (Seville's) judgment against its insured because Seville did not timely notify plaintiff insurer of the fire which damaged Seville's property:
“Insurance Law § 3420(a)(2) expressly permits an injured party to recover any unsatisfied judgment against an insured, directly from the insurer” … . Insurance Law § 3420(a)(3) requires the injured party to demonstrate that he or she acted diligently in attempting to ascertain the identity of the insurer, and thereafter expeditiously notified the insurer … . “In determining the reasonableness of an injured party's notice, the notice required is measured less rigidly than that required of the insured[ ]” … . “The injured person's rights must be judged by the prospects for giving notice that were afforded him, not by those available to the insured” … . “What is reasonably possible for the insured may not be reasonably possible for the person he has injured. The passage of time does not of itself make delay unreasonable” … .
Here, the plaintiff made a prima facie showing that Seville failed to act diligently in attempting to ascertain the plaintiff's identity and in expeditiously notifying it. In opposition, Seville failed to raise a triable issue of fact … . Mt. Hawley Ins. Co. v Seville Electronics Trading Corp., 2016 NY Slip Op 03862, 2nd Dept 5-18-16
INSURANCE LAW (INSURER NOT OBLIGATED TO SATISFY JUDGMENT AGAINST ITS INSURED; INJURED PARTY FAILED TO TIMELY NOTIFY INSURER OF THE FIRE WHICH CAUSED THE DAMAGE)