Publications

Court Finds Laches Defense Bars Coverage for Asbestos Claimants

July 1, 2009
New York Law Journal

In Continental Casualty Co. v. Employers Ins. Co. of Wausau, the Appellate Division, First Department issued an uncommon decision upholding the insurance carriers’ laches defense and finding that coverage was barred due to prejudice caused by the insured’s delay in asserting a new coverage theory. In doing so, the court also reaffirmed the well-settled rule that a direct action plaintiff’s claim under Section 3420 of the Insurance Law is subject to the same defenses that the insurance carrier could raise to defend a lawsuit filed by the insured. Finally, the First Department rejected the trial court’s application of an exposure trigger to claims for negligent installation of asbestos, confirming the application of the injury-in-fact trigger.