Heritage Must Cover Defamation Costs: NY High Court

Law360, New York (February 25, 2011, 5:47 PM EST) -- New York's highest court Thursday relieved Federal Insurance Co. from coverage of Fieldston Property Owners Association Inc.'s legal costs in two defamation suits, ruling that Hermitage Insurance Co. Inc. was the primary insurer.

The New York State Court of Appeals found that Hermitage, which issued a commercial general liability policy with Fieldston, had the primary duty to defend Fieldston, to the exclusion of any responsibility owed by Federal, which had issued Fieldston a directors and officers liability policy.

Both policies included "other insurance" clauses, and based...
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