HVT, Inc. v. Safeco Insurance of America

77 A.D.3d 255, 908 N.Y.S.2d 222
CourtAppellate Division of the Supreme Court of the State of New York
DecidedSeptember 14, 2010
StatusPublished
Cited by7 cases

This text of 77 A.D.3d 255 (HVT, Inc. v. Safeco Insurance of America) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HVT, Inc. v. Safeco Insurance of America, 77 A.D.3d 255, 908 N.Y.S.2d 222 (N.Y. Ct. App. 2010).

Opinion

OPINION OF THE COURT

Dickerson, J.

Introduction

CPLR 511 (b) provides a mechanism pursuant to which a defendant may serve a demand to change the place of a trial upon the ground of improper venue to a county the defendant specifies as being proper. Under that section, after the defendant has served such a demand, and absent the plaintiffs timely consent, the defendant may file a motion to change the place of trial. The section further provides that the “[defendant may notice such motion to be heard as if the action were pending in the county he [or she] specified, unless plaintiff within five days after service of the demand serves an affidavit showing either that the county specified by the defendant is not proper or that the county designated by him [or her] is proper” (CPLR 511 [b]).

On this appeal, we must determine whether an affidavit served by a plaintiff in accordance with CPLR 511 (b) may be scrutinized to ensure that it does, in fact, “show[ ] either that the county specified by the defendant is not proper or that the county designated by him is proper,” or if the mere service of such an affidavit, irrespective of its content, satisfies the plaintiff’s burden. We hold that, while the sufficiency of the factual averments set forth in such affidavits may not be weighed, the contents of the affidavits may nonetheless be considered to confirm that the averments therein do indeed “show[ ] either that the county specified by the defendant is not proper or that the county designated by [the plaintiff] is proper” as required by the statute (CPLR 511 [b]).

[257]*257Factual and Procedural Background

The Complaint and Amended Complaint

The plaintiff, HVT, Inc., commenced this action against the defendant Safeco Insurance Company of America (hereinafter Safeco) by the filing of a summons and complaint dated June 23, 2009. In the complaint, the plaintiff stated that the defendant Anne Sullivan Polino (hereinafter Polino) leased a vehicle from it, and that the subject lease required her to obtain insurance which would cover it. According to the plaintiff, Safeco issued an insurance policy to nonparty Cosimo Polino, Polino’s husband. The plaintiff claimed that Polino was also an insured under the policy.

After Polino was involved in a motor vehicle collision, nonparties Dennis Herdendorf and Nancy Herdendorf commenced an underlying personal injury action against both Polino and the plaintiff in the Supreme Court, Erie County (hereinafter the underlying action). According to the plaintiff, under the terms of the subject insurance policy, Safeco was obligated to defend it against any claim seeking damages payable under the terms of the policy, and to pay all defense costs.

The plaintiff claimed that, initially, the same attorney, presumably provided by Safeco, represented both it and Polino in the underlying action. However, as the underlying action proceeded, the plaintiff allegedly discovered certain facts, not disclosed here, which revealed that it would no longer be appropriate for the plaintiff and Polino to be represented by the same attorney.

On or about February 23, 2009 the plaintiff allegedly requested that Safeco provide it with separate counsel of its choosing in the underlying action, but Safeco refused.

In the first cause of action, the plaintiff sought a judgment declaring that Safeco was obligated to defend and indemnify it in the underlying action. In the second cause of action, the plaintiff claimed that Safeco breached its contractual duty under the policy to provide it with a defense in the underlying action. Accordingly, the plaintiff claimed that it was entitled to recover all damages incurred, including defense fees and expenses.

The plaintiff served a supplemental summons and an amended complaint dated August 5, 2009, adding Polino as a defendant. The plaintiff claimed that Polino was “an interested and necessary party in this action as she is a party to and the primary insured under the aforementioned policy of insurance and, in [258]*258addition, a defendant in the underlying action.” The plaintiff did not make any additional allegations against Polino, other than stating, in the ad damnum clause, that it was entitled to “[s]uch similar and additional relief as the Court deems appropriate concerning the rights of Polino.”

Safeco’s Demand for Change of Place of Trial

Approximately one month before the plaintiff served its amended complaint adding Polino as a defendant, Safeco served a demand for change of place of trial (see CPLR 511 [b]), dated July 8, 2009. Safeco demanded that the place of trial be changed from Erie County, in which it claimed the action had been improperly commenced, to Westchester County. In its demand, Safeco stated that neither the plaintiff nor Safeco had its principal place of business in Erie County. Safeco further observed that the plaintiffs principal place of business was in Westchester County.

In response to Safeco’s demand, the plaintiff served an affidavit, sworn to by its attorney, Thomas S. Lane. Lane claimed that venue in Erie County was proper. He emphasized a number of factors which allegedly provided a nexus between this action and Erie County. However, there was no representation in the affidavit concerning the residence or principal place of business of either the plaintiff or Safeco.

Safeco’s Motion to Change Venue

By notice of motion dated July 17, 2009, Safeco moved, in Westchester County, pursuant to CPLR 503, 510 and 511, to change venue from Erie County to Westchester County. In support of its motion, Safeco submitted affidavits and other evidence to support its contention that Safeco had no offices and no place of business in Erie County, that the plaintiffs principal place of business in New York State was in Westchester County, and that, in fact, neither Safeco nor the plaintiff “resided” in Erie County. Safeco claimed that, in responding to its demand for change of place of trial, the plaintiff, by Lane’s affidavit, failed to address the residence of the parties, which Safeco claimed was the only basis for venue in this action.

The Plaintiffs Cross Motion

The plaintiff cross-moved to compel the hearing and determination, in Erie County, of Safeco’s pending motion for change of venue. It also opposed Safeco’s motion for a change of venue [259]*259and argued, in the alternative, for simply retaining venue in Erie County. The plaintiff contended that it was improper for Safeco to file its motion to change venue in Westchester County. The plaintiff argued that CPLR 511 (b) required that, where a plaintiff has served an “affidavit of proper venue,” a motion to change venue must be filed in the county in which the action is pending.

The plaintiff further contended that the venue in Erie County was proper, observing that Polino, now a party to the action, resides in Buffalo, located in Erie County.

The plaintiff also asserted that the Supreme Court should retain venue in Erie County for a variety of reasons pertaining to the convenience of the witnesses and the nexus between Erie County and the underlying action.

In opposition to the plaintiffs cross motion, Safeco reiterated its contention that neither the plaintiff nor Safeco resided in Erie County. Thus, according to Safeco, Erie County was not a proper venue for this action.

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Cite This Page — Counsel Stack

Bluebook (online)
77 A.D.3d 255, 908 N.Y.S.2d 222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hvt-inc-v-safeco-insurance-of-america-nyappdiv-2010.