NY High Court Do-Over Preserves Power Of Policy Exclusions

Law360, New York (February 18, 2014, 7:15 PM EST) -- New York insurers exhaled Tuesday after the state's top court, in a rare self-reversal, said they don't face automatic liability if they breach their duty to defend a policyholder, a move lawyers say puts the state back among the majority of jurisdictions that detach questions of defense from those of indemnity.

A 4-2 majority of the New York Court of Appeals reversed the court's June ruling that a Zurich Insurance Co. unit's breach of its duty to defend a lawyer being sued for malpractice by two of his...
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