Philip Morris Companies, Inc. v. Federal Insurance

Appellate Division of the Supreme Court of New York

Philip Morris Companies, Inc. v. Federal Insurance

244 A.D.2d 223, 664 N.Y.S.2d 45

CourtAppellate Division of the Supreme Court of the State of New York

DecidedNovember 18, 1997

StatusPublished

This text of 244 A.D.2d 223 (Philip Morris Companies, Inc. v. Federal Insurance) 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.

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Philip Morris Companies, Inc. v. Federal Insurance, 244 A.D.2d 223, 664 N.Y.S.2d 45 (N.Y. Ct. App. 1997).

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Opinion

—Order, Supreme Court, New York County (Ira Gammerman, J.), entered on or about March 14, 1997, which, inter alia, granted the motion of plaintiff Philip Morris Companies, Inc., to dismiss defendants’ third-party actions, unanimously affirmed, with costs.

There is no basis to disturb the IAS Court’s exercise of discretion in dismissing the third-party actions as premature (CPLR 1010; cf., Consolidated Edison Co. v Royal Indem. Co., 41 AD2d 37, 40). The subject insurance policy contained a covenant by the insurers restricting their right to subrogation until after payment on the policy and plaintiff asserted its rights thereunder. Inasmuch as defendants have failed to demonstrate any real prejudice, they should not be permitted to assert their right of subrogation over and against the alleged tortfeasor, prior to payment, entangling the insured in collateral litigation (see also, Ross v Pawtucket Mut. Ins. Co., 13 NY2d 233). We have considered defendants’ remaining contentions and find them to be without merit. Concur—Ellerin, J. P., Williams, Tom and Mazzarelli, JJ.

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—Order, Supreme Court, New York County (Ira Gammerman, J.), entered on or about March 14, 1997, which, inter alia, granted the motion of plaintiff Philip Morris Companies, Inc., to dismiss defendants’ third-party actions, unanimously affirmed, with costs.

There is no basis to disturb the IAS Court’s exercise of discretion in dismissing the third-party actions as premature (CPLR 1010; cf., Consolidated Edison Co. v Royal Indem. Co., 41 AD2d 37, 40). The subject insurance policy contained a covenant by the insurers restricting their right to subrogation until after payment on the policy and plaintiff asserted its rights thereunder. Inasmuch as defendants have failed to demonstrate any real prejudice, they should not be permitted to assert their right of subrogation over and against the alleged tortfeasor, prior to payment, entangling the insured in collateral litigation (see also, Ross v Pawtucket Mut. Ins. Co., 13 NY2d 233). We have considered defendants’ remaining contentions and find them to be without merit. Concur—Ellerin, J. P., Williams, Tom and Mazzarelli, JJ.

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Bluebook (online)

244 A.D.2d 223, 664 N.Y.S.2d 45, Counsel Stack Legal Research, https://law.counselstack.com/opinion/philip-morris-companies-inc-v-federal-insurance-nyappdiv-1997.

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