Northfield Insurance Co. v. Queen's Palace, Inc.

252 F. Supp. 3d 161, 2017 WL 1957475, 2017 U.S. Dist. LEXIS 71448
CourtDistrict Court, E.D. New York
DecidedMay 10, 2017
Docket16-CV-471 (SMG)
StatusPublished
Cited by2 cases

This text of 252 F. Supp. 3d 161 (Northfield Insurance Co. v. Queen's Palace, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northfield Insurance Co. v. Queen's Palace, Inc., 252 F. Supp. 3d 161, 2017 WL 1957475, 2017 U.S. Dist. LEXIS 71448 (E.D.N.Y. 2017).

Opinion

MEMORANDUM & ORDER

STEVEN M. GOLD, United States Magistrate Judge

Introduction

Northfield Insurance Co. (“Northfield”) brings this action seeking a judgment declaring that it has no duty to defend or indemnify defendants Queen’s Palace, Inc. (“Queen’s Palace”), Rosewood Realty, LLC (“Rosewood”), and NYC Kazi Office Inc, (“NYC.Kazi”) (collectively, “defendants”), in an underlying action filed in .Supreme Court, Kings County, by defendant Vicen-ta Moran as -Administratrix of the Estate of Eduardo Rojas, (the “Estate”). See Compl. ¶ 1, Docket Entry 1. In the underlying action, the Estate seeks damages for the wrongful death of Eduardo Rojas (the “decedent”), who was allegedly “assaulted, dragged, pistol whipped[,] and killed” on July 26, 2014, while outside and waiting to enter a nightclub located at 37-11 67th Street, Woodside,, New York (the “premises”). Id.

The parties have consented to the exercise of jurisdiction by a United States Magistrate Judge pursuant to 28 U.S.C. § 636(c). See Docket Entry 25. Plaintiff now moves for summary judgment. Docket Entry 36. I heard oral argument on the motion on November 10, 2016. Docket Entry 46. Counsel for Queen’s. Palace and NYC Kazi elected not- to appear for the argument. Docket Entry 45. I reserved decision to afford counsel for these parties an opportunity to be heard after reviewing the oral argument transcript. See Order dated November 9, 2016. Counsel for these [164]*164parties then submitted a post-argument letter brief. Docket Entry 48.

I have considered the parties’ written submission and oral arguments. For the reasons that follow, plaintiffs motion for summary judgment is granted.

Facts

The following facts present the evidence in the light most favorable to defendants.1 See Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587-88, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986).

Northfield issued-a general commercial liability insurance policy to Queen’s Palace (the “policy”) covering the period from March 11, 2014 to March 11, 2015. PI. R. 56.1 ¶ 1. The policy provides liability coverage for suits claiming damages because of “bodily injury,” defined to include death, caused by an “occurrence,” which the policy defines as an accident. PL R. 56.1 ¶ 2. The policy limits liability to $1 million for each occurrence and $2 million in the aggregate. First Crecelius Aff. ¶ 2.

By endorsement, the policy contains an Assault and Battery Exclusion, which provides, in pertinent part:

1.The following exclusion is added to Paragraph 2., Exclusions, of Section I — Coverages—Coverage A Bodily Injury and Property Damage Liability: Assault or Battery “Bodily injury” or “property damage” arising out of any act or “assault” or “battery” committed by any person, including any act or omission in connection with the prevention or suppression of such “assault” or “battery”.
* * *
2.The following is added to the DEFINITIONS Section:
“Assault” means any attempt or threat to inflict injury to another, including any conduct that would reasonably place another in apprehension of such injury.
“Battery” means any intentional, reckless or offensive physical contact with, or any use of force against, a person without his or her consent that inflicts some injury, regardless of whether the resulting injury infl[icted] is intended or expected.

Affidavit of Kenneth Rupee (“Kupee Aff.”) at NIC 000556, Docket Entry 36-13; see also First Crecelius Aff. ¶ 4.

On July 26, 2014, the decedent was beaten to death while standing in line waiting to enter the premises. Moran R. 56.1 ¶ 2; PL R. 56.1 ¶ 4. According to the complaint filed by the Estate in the underlying action, Rosewood is the owner of the premises, while Queen’s Palace and/or NYC Kazi Office Inc. are the lessees and operators of the nightclub located there. Pl. R. 56.1 ¶ 9; Complaint in Moran v. Rosewood Realty, L.L.C. et al. (“Underlying Compl.”) ¶¶ 7-9, Engeldrum Decl., Ex. 1, Docket Entry 36-3.The Estate’s complaint further alleges that, while the decedent was standing in line, a group of individuals was forcibly removed from the nightclub by security officers. Underlying Compl. ¶ 17. These in[165]*165dividuals were armed and, upon being removed from the club, they began shooting at individuals waiting outside to enter. Underlying Compl. ¶ 18. The Estate claims that decedent “was assaulted, dragged, pistol whipped, and killed by the individuals being removed from the Premises.” Underlying Compl. ¶ 20. The Estate seeks damages from Rosewood, Queen’s Palace, and NYC Kazi for negligently failing to provide proper security at the premises. Underlying Compl. ¶ 19.

Plaintiff first received notice of the July 26, 2014 assault by letter dated April 2, 2015, from AmTrust North America (“Am-Trust”), the administrator for Tower Insurance Company of New York, Rosewood’s liability carrier. First Crecelius Aff. ¶5. Northfield received the letter from AmTrust on April 8, 2015. Id. AmTrust’s letter advised Northfield that the decedent was allegedly assaulted and killed by patrons of the nightclub and asserted that, pursuant to Rosewood’s lease agreement with Queen’s Palace, Northfield’s insured, Northfield was required to defend and indemnify Rosewood. Letter from AmTrust to Northfield Insurance Co., dated April 2, 2015, Docket Entry 36-15.

On April 20, 2015, Gail Crecelius (“Cre-celius”), a claim professional for North-field, spoke with Syed Mustaquim Ballah (“Billah”) of Queen’s Palace and informed Billah that Northfield was disclaiming coverage based upon the policy’s Assault and Battery Exclusion. First Crecelius Aff. ¶ 6. Northfield reiterated this position in a letter dated April 27, 2015, addressed to Rosewood and AmTrust and copied to the other defendants. See Letter from North-field to Rosewood and AmTrust, dated April 27, 2015, First Crecelius Aff., Ex. B, Docket Entry 36-16. In particular, North-field disclaimed coverage based on the Assault and Battery Exclusion “because the injury to [decedent] arose out of the assault and/or battery of [decedent] committed by any person,” and because North-field did not receive timely notice of the occurrence from the insured as the policy requires. Id. at 5.

Defendants contend that Northfield’s disclaimer of coverage was untimely and thus ineffective under N.Y. Ins. Law § 3420(d) because, “upon information and belief,” the copy of its April 27 letter addressed to Queen’s Palace was returned to sender as undeliverable and Queen’s Palace never received it. See Rosewood’s Memorandum of Law in Opposition to Summary Judgment (“Rosewood Mem.”) at 7, 9-11, Docket Entry 39. According to Crecelius, however, the April 27 letter disclaiming coverage was sent to Queen’s Palace by both certified and first class mail directed to the address listed on the policy and the address provided by Queen’s Palace’s broker, DurAmerica Brokerage, Inc. (“DurAmerica”). Second Cre-celius Aff. ¶2. The letter was returned, but as unclaimed — not as undeliverable.

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252 F. Supp. 3d 161, 2017 WL 1957475, 2017 U.S. Dist. LEXIS 71448, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northfield-insurance-co-v-queens-palace-inc-nyed-2017.