FILED: NEW YORK COUNTY CLERK 02/07/2018 02:10 PM
`FILED: NEW YORK COUNTY CLERK 02m2018 02:10 PM
`NYSC 3F DOC. NO. 433
`NYSCEF DOC. NO. 433
`
`IND
`EX NO.
`652471/2011
`INDEX NO. 652471/2011
`
` VYSC
`
` 4|IV-v .D
` 3F:
`
`02/07/2018
`RECEIVED NYSCEF: 02/07/2018
`
`EXHIBIT A
`
`

`

`FILED: NEW YORK COUNTY CLERK 02/07/2018 02:10 PM
`NYSCEF DOC. NO. 433
`F IL E D : NEW YORK
`NYSCEF
`NO.
`430
`DOC.
`SUPREME
`
`COUNTY
`
`CLERK
`
`01/17/2018
`
`10
`
`: 48
`
`AM)
`
`INDEX NO. 652471/2011
`
`RECEIVED NYSCEF: 02/07/2018
`I N DEX NO .
`6 5 2 4 7 1 / 2 0 1 1
`
`RECEIVED
`
`NYSCEF:
`
`01/17/2018
`
`OF THE STATE
`COURT
`NEW YORK
`COUNTY
`
`OF NEW YORK
`
`4 w~
`
`PRESENT:
`
`..
`
`Justice
`Justice
`
`: 652471/2011
`COMPANY
`
`COMPANY
`
`Index Number
`RLI
`INSURANCE
`vs
`NAVIGATORS
`INSURANCE
`Sequence Number
`: 006
`CONSOLIDATION/JOINT
`
`TRIAL
`
`PART
`
`INDEX NO.
`
`MOTONDATE
`
`MOTION SEQ. NO.
`
`| No(s).
`|No(s).
`
`)I No(s).
`
`<'
`
`1 to _ , were read on this motion to/for
`
`numbered
`to Show Cause - Affidavits
`
`- Exhibits
`
`The following
`Notice of Motion/Order
`
`papers,
`
`Affidavits
`
`Answering
`Roolving Affidavits
`
`-
`
`Exhibits
`
`Upon
`
`the foregoing
`
`papers,
`
`it
`
`is ordered
`
`that
`
`this motion
`
`is
`
`pl~~
`g,lg>
`
`I!,!/
`
`"l~
`
`/
`
`j,qi
`I
`
`'>~
`
`zP(>orch~
`j»j'l(r»!i!'i
`
`d
`
`ia
`'"'+
`
`
`
`.'(i!i»'i5'(ilail~
`
`dl'«
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`P((>
`p(j»
`
`j'
`(i~ Al
`Ai
`
`l)c»»i)i'
`p6>
`PIL3
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`J
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`i
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`c/r'p,5i
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`
`(!!
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`i
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`f P/+M
`!6
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`thN I
`N$
`g
`
`00
`
`HON. MEUSSA
`
`A. C
`
`NE
`J,a,gr
`
`....,I
`Dated:
`
`<
`
`l~((g~((
`
`, J.S.C.
`
`.1.1. CHECK ONE:
`
`....................................................................,
`
`2. CHECK AS APPROPRIATE:
`
`...........................MOTION
`
`IS:
`
`CASE DISPOSED
`O DENIED
`
`GRANTED
`
`3. CHECK IF APPROPRIATE:
`
`....................,,,.........................
`
`SETTLE ORDER
`
`DO NOT POST
`
`0 FIDUCIARY
`
`11 ofof
`
`88
`
`NON-FINAL
`
`DISPOSITION
`¤ OTHER
`
`O GRANTED
`IN PART
`¤ SUBMIT ORDER
`0 RE F ERENCE
`APPOINTMENT
`
`

`

`FILED: NEW YORK COUNTY CLERK 02/07/2018 02:10 PM
`NYSCEF DOC. NO. 433
`NEW YORK
`DOC.
`NO.
`430
`
`10:
`
`48
`
`AM)
`
`INDEX NO. 652471/2011
`
`RECEIVED NYSCEF: 02/07/2018
`652471/2011
`INDEX
`NO.
`
`RECEIVED
`
`NYSCEF:
`
`01/17/2018
`
`FILED:
`NYSCEF
`
`COUNTY
`
`CLERK
`
`01/17/2018
`
`COURT
`OF THE STATE
`SUPREME
`OF NEW YORK:
`IAS PART
`COUNTY
`__________________________X
`
`OF NEW YORK
`15
`
`X
`
`RLI
`
`Insurance
`
`Company
`
`v.
`
`Navigators
`
`Insurance
`
`Co.
`
`et al
`
`Defendants.
`___________________________X
`
`X
`
`MELISSA
`
`A. CRANE,
`
`J.
`
`Index
`
`No.
`
`652471/2011
`
`This
`
`is an insurance
`
`coverage
`
`dispute
`
`that
`
`presents
`
`the question:
`
`when
`
`does
`
`the
`
`primary
`
`insurer's
`
`duty
`
`to defend
`
`end?
`
`Given
`
`the current
`
`procedural
`
`posture
`
`of
`
`the
`
`underlying
`
`case,
`
`the policy
`
`language
`
`at
`
`issue,
`
`and the reasonable
`
`expectations
`
`of
`
`the
`
`insured,
`
`the court
`
`holds
`
`that
`
`the primary
`
`insurer's
`
`duty
`
`to defend
`
`ends
`
`at
`
`the conclusion
`
`of
`
`the
`
`litigation
`
`or upon
`
`settlement.
`
`The
`
`facts
`
`of
`
`the underlying
`
`case
`
`involve
`
`a terrible
`
`tragedy.
`
`On the morning
`
`of
`
`and her husband
`
`Charlie
`
`were
`
`to a new office
`
`February
`
`13, 2008,
`
`Julie
`
`Simon
`
`driving
`
`building
`
`in Nassau
`
`County
`
`to hang wallpaper.
`
`Julie
`
`was
`
`driving.
`
`When
`
`they were
`
`unable
`
`to enter
`
`the
`
`building
`
`through
`
`the front
`
`entrance.
`
`Julie
`
`drove
`
`the
`
`vehicle
`
`through
`
`an opening
`
`in a fence
`
`onto
`
`the upper
`
`deck
`
`of a parking
`
`garage
`
`that was
`
`still
`
`under
`
`construction,
`
`adjacent
`
`to the building.
`
`When
`
`the vehicle
`
`was
`
`about
`
`halfway
`
`between
`
`the opening
`
`gate
`
`in the fence
`
`and
`
`the leading
`
`edge
`
`of
`
`the
`
`parking
`
`deck,
`
`Julie
`.Iulie
`
`lost
`
`control
`
`of
`
`the car. The
`
`vehicle
`
`slid
`
`on ice until
`
`it
`
`reached
`
`the edge
`
`of
`
`the
`
`incomplete
`
`parking
`
`deck.
`
`broke
`
`through
`
`the steel
`
`cable
`
`guardrail
`
`system
`
`that was
`
`intended
`
`to protect
`
`individual
`
`workers,
`
`and
`
`fell
`
`approximately
`
`32 feet
`
`to the
`
`lower
`
`level
`
`2
`
`of
`
`8
`
`

`

`FILED: NEW YORK COUNTY CLERK 02/07/2018 02:10 PM
`NYSCEF DOC. NO. 433
`NEW YORK
`(FILED:
`DOC.
`NO.
`430
`NYSCEF
`
`COUNTY
`
`CLERK
`
`01/17/2018
`
`10
`
`: 48
`
`AM
`
`INDEX NO. 652471/2011
`
`RECEIVED NYSCEF: 02/07/2018
`NO.
`652471/2011
`INDEX
`
`RECEIVED
`
`NYSCEF:
`
`01/17/2018
`
`of
`
`the garage.
`
`Charles
`
`was
`
`injured
`
`when
`
`he jumped
`
`out
`
`of
`
`the vehicle
`
`before
`
`it
`
`fell.
`
`Julie
`.Iulic
`
`fell with
`
`the vehicle
`
`and died
`
`at
`
`the scene.
`
`Charles
`
`subsequently
`
`commenced
`
`suit
`
`in 2009
`
`against,
`
`among
`
`others,
`
`Granite
`
`Building
`
`2, Li C (Granite)
`
`the defendant
`
`Lalezarian
`
`Properties.
`
`I,lh'
`LLC
`
`(hereinafter
`
`Lalezarian),
`
`Kulka
`
`Construction
`
`Corp.
`
`and Kulka
`
`Contracting,
`
`the property
`
`manager,
`
`LLC
`
`(hereinafter
`
`together
`
`the Kulka
`
`defendants).
`
`the construction
`
`manager,
`
`Canatal
`
`Industries.
`
`Inc.
`
`(hereinafter
`
`Canatal),
`
`the structural
`
`steel
`
`subcontractor,
`
`MCLO
`
`Structural
`
`Steel Corp.
`
`(hereinafter
`
`MCLO).
`
`the installer
`
`of
`
`the structural
`
`steel.
`
`and FXR
`
`Construction,
`
`Inc..
`
`doing
`
`business
`
`as DEV Construction
`
`(hereinafter
`
`FXR).
`
`the concrete
`
`subcontractor.
`
`~ Tlle~ IIL venue
`
`of
`
`this
`
`action
`
`was Nassau
`llCLWU
`
`County.
`MVVlllf
`
`On September
`
`8, 2011.
`
`RLi
`
`Insurance
`
`Company
`
`(RLI)
`
`tiled
`
`this
`
`action
`
`(Action
`
`No.
`
`l) against
`
`various
`
`insurance
`
`companies
`
`seeking
`
`additional
`
`insured
`
`coverage
`
`on
`
`behalf
`
`of
`
`its named
`
`insured.
`
`Granite.
`
`Various
`
`parties
`
`to this
`
`action
`
`also
`
`asserted
`
`cross
`
`claims,
`
`including
`
`against
`
`the proponent
`
`of
`
`this motion.
`
`State National
`
`Insurance
`
`Company
`
`(State
`
`National).
`
`While
`
`Action
`
`No.
`
`1 proceeded
`
`through
`
`initial
`
`motion
`
`practice.
`
`the Appellate
`
`Division,
`
`Second
`
`Department
`
`issued
`
`a decision
`
`in the underlying
`
`action
`
`that
`
`defendant
`
`MCLO
`
`was
`
`of
`
`free
`
`liability
`
`(See Simon
`
`v Granite
`
`B/dy..
`
`114 AD3d
`
`474
`
`(February
`
`|3.
`
`2014).
`
`As a result,
`
`the court
`
`in Action
`
`No.
`
`1 extinguished
`
`defendant
`
`Arch
`
`Insurance
`
`Company's
`
`duty
`
`to defend.
`
`On April
`
`2, 2015,
`
`Scottsdalc
`
`Insurance
`
`Company
`
`(Scottsdale)
`
`filed
`
`Action
`
`No.
`
`2
`
`in which
`
`it sought
`
`a declaration
`
`that
`
`it had no duty
`
`to defend
`
`or
`
`indemnify
`
`(granite
`
`or
`
`Kulka
`
`Contracting
`
`in the underlying
`
`case,
`
`and that
`
`the Scottsdale
`
`policy
`
`was
`
`excess
`
`over
`
`22
`
`

`

`FILED: NEW YORK COUNTY CLERK 02/07/2018 02:10 PM
`NYSCEF DOC. NO. 433
`NEW YORK
`NO.
`430
`DOC.
`
`10:
`
`48
`
`AM)
`
`INDEX NO. 652471/2011
`
`RECEIVED NYSCEF: 02/07/2018
`652471/2011
`INDEX
`NO.
`
`RECEIVED
`
`NYSCEF:
`
`01/17/2018
`
`FILED:
`NYSCEF
`
`COUNTY
`
`CLERK
`
`01/17/2018
`
`policies
`
`that RLl,
`
`Navigators,
`
`State National
`
`and The
`
`Insurance
`
`Company
`
`Stat«of' ol'
`of
`the State
`
`of
`
`Pennsylvania
`
`had
`
`issued.
`
`In June
`
`2015,
`
`the underlying
`
`action
`
`was
`
`tried
`
`before
`
`a jury.
`
`On June
`.Iunc
`
`16. 20I5.
`
`the
`
`jury
`
`returned
`
`a verdict
`
`of $9,435.000.
`
`The jury
`
`apportioned
`
`fault:
`
`60% to Granite.
`
`30%
`
`to Kulka
`
`and
`
`10% to FXR.
`
`On April
`
`22, 2016,
`
`the trial
`
`court
`
`in the underlying
`
`action
`
`to $4,967.500.
`
`the parties
`
`action
`
`reduced
`
`the jury
`
`verdict
`
`Subsequently,
`
`in the underlying
`
`stipulated
`
`to reduce
`
`damages
`
`further.
`
`On May
`
`24, 2016.
`
`Granite
`
`appealed
`
`the order
`
`in the
`
`underlying
`
`action
`
`that
`
`had denied
`
`its motion
`
`for
`
`a judgment
`
`notwithstanding
`
`the verdict.
`
`This
`
`appeal
`
`is pending.
`
`After
`
`the jury's
`
`award.
`
`on August
`
`19. 2016,
`
`State National
`
`tendered
`
`its policy
`
`limits
`
`of $1,000,000,
`
`as well
`
`as 195,913.46
`
`representing
`
`its share
`
`oi'
`of
`
`interest
`
`and costs,
`
`pfaintif'I"
`to plaintiff's
`
`court
`
`in the
`
`action
`
`counsel
`
`in the underling
`
`action.
`
`On March
`
`I7.
`
`2017.
`
`the
`
`claims
`
`is
`
`underlying
`
`entered
`
`judgment
`
`in favor
`
`of plaintiff.
`
`Granite
`
`it
`
`also
`
`pressing
`
`an appeal
`
`of
`
`thatjudgment.
`
`based
`
`upon
`
`the trial
`
`court's
`
`failure
`
`to apply
`
`the
`
`"storm
`
`progress"
`in progress'
`
`doctrine.
`
`(Keane
`
`Aff..
`
`I 1/18/2016,
`
`at ¶ 6).
`
`There
`
`is no opposition
`
`to that
`
`part
`
`of State National's
`
`motion
`
`to consolidate
`
`Action
`
`No.
`
`1 with
`
`Action
`
`No.
`
`2,
`
`for
`
`joint
`
`discovery
`
`and trial.
`
`Moreover,
`
`to consolidate
`
`these
`
`cases
`
`has great merit.
`
`Both
`
`involve
`
`insurance
`
`for
`
`the same
`
`underlying
`
`accident.
`
`judicial
`
`of
`
`Consequently,
`
`economy
`
`and the risk
`
`inconsistent
`
`decisions
`
`favor
`
`consolidation.
`
`It
`
`is also
`
`cheaper
`
`for
`
`the parties
`
`to litigate
`
`these
`
`issues
`
`one
`
`time,
`
`before
`
`one
`
`court.
`
`Accordingly,
`
`the court
`
`grants
`
`the motion
`
`to consolidate.
`
`State National
`
`also
`
`seeks
`
`summary
`
`judgment
`
`in its favor
`
`and a declaration
`
`that
`
`it
`
`has no further
`
`obligation
`
`to pay
`
`statutory
`
`interest
`
`or costs
`
`and no further
`
`obligation
`
`to
`
`defend
`
`or
`
`indemnify
`
`Granite
`
`or any
`
`other
`
`defendant
`
`in the underlying
`
`action.
`
`11 is
`
`3
`
`
`
`of44 of
`
`88
`
`

`

`FILED: NEW YORK COUNTY CLERK 02/07/2018 02:10 PM
`NYSCEF DOC. NO. 433
`: NEW YORK
`|FILED
`NO.
`430
`NYSCEF
`DOC.
`
`COUNTY
`
`CLERK
`
`01/17/2018
`
`10
`
`: 48
`
`AM)
`
`INDEX NO. 652471/2011
`
`RECEIVED NYSCEF: 02/07/2018
`652471/2011
`INDEX
`NO.
`
`RECEIVED
`
`NYSCEF:
`
`01/17/2018
`
`undisputed
`
`that State National
`
`is Granite's
`
`primary
`
`insurer
`
`as Granite
`
`is an additional
`
`insured
`
`under
`
`State National
`
`s policy
`
`covering
`
`FXR.
`
`According
`
`to that
`
`policy.
`
`State
`
`National's
`
`"duty
`
`to defend
`
`ends when
`
`[it has]
`
`used
`
`up the applicable
`
`limit
`
`of
`
`insurance
`
`in
`
`the payment
`
`of
`
`judgments
`
`or
`
`settlements."
`settlements."
`
`(insurance
`
`policy.
`
`Exhibit
`
`A to State
`
`National's
`
`motion,
`
`section
`
`[I][A][1][a][2)|)
`
`action
`
`and that
`
`it has
`
`State National
`
`points
`
`to the judgment
`
`in the underlying
`
`tendered
`
`its policy
`
`limits
`
`to underlying
`
`plaintiff's
`
`counsel
`
`to argue
`
`that
`
`the applicable
`
`limit
`
`of
`
`insurance
`
`has been
`
`"used
`
`up"
`
`to pay
`
`the judgment,
`
`at
`
`least
`
`partially.
`
`RLI
`
`contends
`
`that, while
`
`State National's
`
`indemnity
`
`obligation
`
`may
`
`be limited
`
`to liability
`
`$1,000,000,
`
`State National's
`
`duty
`
`to defend
`
`is unlimited
`
`in that State National's
`
`duty
`
`of
`
`to
`
`defend
`
`applies
`
`not
`
`just
`
`to the $1,000,000
`
`to which
`
`State National
`
`is exposed,
`
`but
`
`to the
`
`entire
`
`amount
`
`to which
`
`Granite
`
`is exposed
`
`(i.e.
`
`approx.
`
`5 million).
`
`RLI's
`
`position
`
`makes
`
`sense.
`
`It
`
`is undisputed
`
`that State National
`
`provides
`
`insurance
`
`on the primary
`
`level
`
`and has the concomitant
`
`duty
`
`to defend.
`
`A duty
`
`to defend
`
`usually
`
`includes
`
`the duty
`
`to pay
`
`for
`
`an appeal
`
`(Brassil
`
`v Maryland
`
`Cas. Co.),
`
`210 NY 235
`
`(1914);
`
`Fidelity
`
`Gen.
`
`Ins Co.,
`
`v Aetna
`
`Ins. Co.,
`
`27 AD2d
`
`932
`
`[2d Dep't
`
`1967];
`
`see also
`
`Associated
`
`Automotive
`
`Inc.
`
`v Acceptance
`
`Indem
`
`Ins. Co,
`
`705 F Supp
`
`2d 714,
`
`724
`
`[SD
`
`Tex.
`
`2010]["absent
`
`provision
`
`an insurer's
`
`an express
`
`in the policy
`
`to the contrary,
`
`duty
`
`to
`
`defendant
`
`encompasses
`
`a duty
`
`to appeal
`
`an adverse
`
`judgment
`
`against
`
`the insured
`
`as long
`
`as there
`
`are reasonable
`
`grounds
`
`to believe
`
`that
`
`the insured's
`
`interest
`
`would
`
`be furthered
`
`appeal"
`the appeal").
`
`by
`
`Thus,
`
`a "primary
`
`insurer
`
`may
`
`not walk
`
`away
`
`from the insured
`
`by paying
`
`relatively
`
`low limits
`
`into
`
`court
`
`and abandon
`
`the insured
`
`with
`
`a substantial
`
`judgment
`
`simply
`
`because
`
`the cost
`
`of appeal
`
`or other
`
`handling
`
`may
`
`be formidable.
`
`The
`
`insured's
`
`4
`
`5 of
`
`8
`
`

`

`FILED: NEW YORK COUNTY CLERK 02/07/2018 02:10 PM
`NYSCEF DOC. NO. 433
`
`FILED:
`NYSCEF
`
`NEW
`NO.
`DOC.
`
`YORK
`430
`
`COUNTY
`
`CLERK
`
`7
`
`~
`
`INDEX NO. 652471/2011
`
`RECEIVED NYSCEF: 02/07/2018
`652471/2011
`NO.
`INDEX
`
`RECEIVED
`
`NYSCEF:
`
`01/17/2018
`
`interests
`
`primary
`
`may
`
`limits"
`
`demand
`
`continued
`
`protection
`
`despite
`
`the threatened
`
`exhaustion
`
`of
`
`the
`
`(Gross
`I
`
`v Lloyds
`
`of London
`
`Ins. Co.,
`
`121 Wisc.
`
`2d 78 {Supreme
`
`Court
`
`of
`
`Wisconsin
`
`1984)
`
`citing
`
`7C J. Appelman,
`
`Insurance
`
`Law and Practice,
`
`sec 4684
`
`at 80-82
`
`[Berdal
`
`ed.
`
`1979])
`
`see also,
`
`Auto
`
`Ins. Co.,
`
`of Hartford
`
`v Cook,
`
`7 NY3d
`
`131,
`
`137 [2006]).
`
`limits
`
`plaintiff
`
`Consequently,
`
`the primary
`
`insurer's
`
`tender
`
`of policy
`
`to an injured
`
`is insufficient
`
`to discharge
`
`the duty
`
`to defend
`
`where,
`
`in tendering
`
`limits,
`
`the insurer
`
`does
`
`not
`
`obtain
`
`some
`
`form of peace
`
`for
`
`its insured
`
`(see California
`
`Cas
`
`Ins Co., State
`
`Farm
`
`Mut.
`
`Auto.
`
`Ins. Co.,
`
`185 Ariz
`
`165,
`
`913 P2d
`
`505,
`
`508
`
`(Arizona
`
`Ct of Appeals
`
`1996),
`
`such
`
`as an agreement
`
`from plaintiff
`
`not
`
`to "execute
`
`on the individual
`
`assets
`
`of
`
`the
`
`insured"
`
`( Virginia
`
`Ins. Co.,
`
`v. RSUI
`
`Indem.,
`
`Co.,
`
`2009 WL 4282198
`
`at
`
`* 7 [D. Ariz.
`
`Surety
`
`November
`
`25,
`
`2009]).
`
`Thus,
`
`it can only
`
`be that
`
`the "payment
`
`ofjudgment
`
`or
`
`settlements"
`
`language
`
`in the policy
`
`"contemplates
`
`payment
`
`upon
`
`the conclusion
`
`of
`
`the
`
`litigation
`
`or
`
`termination
`
`of
`
`the claim
`
`settlement"
`
`by
`
`(Gross,
`
`121 Wisc.
`
`at 86).'
`86),
`
`Here,
`
`State National
`
`does
`
`not argue
`
`that
`
`there
`
`is no merit
`
`to Granite's
`
`appeal.
`
`When
`
`it
`
`tendered
`
`its policy
`
`limits
`
`to underlying
`
`plaintiff's
`
`counsel,
`
`it did
`
`not
`
`obtain
`
`a
`
`release
`
`or even
`
`an agreement
`
`In
`
`from plaintiff,
`
`not
`
`to proceed
`
`against
`
`Granite's
`
`assets.
`
`other
`
`words,
`
`it did
`
`nothing
`
`to buy Granite
`
`peace.
`
`This
`
`is why
`
`the case State National
`
`primarily
`
`relies
`
`upon,
`
`In Re 51³' St. Crane
`
`Collapse
`
`Litig.,
`
`84 AD3d
`
`512,
`
`513
`
`[1" Dep't
`
`201 l],
`
`is distinguishable.
`
`There,
`
`the insurer
`
`paid
`
`its policy
`
`limits
`
`to settle
`
`certain
`
`actions
`
`and
`
`obtained
`
`releases
`
`for
`
`its insureds.
`
`Here,
`
`there was
`
`no release
`
`or end to the
`
`litigation
`
`for Granite.
`
`The parties did not cite any New York
`New York
`case law either.
`
`cases directly
`
`on point and research did not
`
`reveal direct
`
`5
`
`6
`
`of
`
`8
`
`

`

`FILED: NEW YORK COUNTY CLERK 02/07/2018 02:10 PM
`NYSCEF DOC. NO. 433
`FILED
`: NEW YORK
`NYSCEF
`DOC.
`NO.
`430
`
`COUNTY
`
`CLERK
`
`01/17/2018
`
`10:
`
`4 8
`
`AM)
`
`INDEX NO. 652471/2011
`
`RECEIVED NYSCEF: 02/07/2018
`INDEX
`NO.
`
`652471/2011
`
`RECEIVED
`
`NYSCEF:
`
`01/17/2018
`
`Primary
`
`insurance
`
`has the first
`
`duty
`
`to defend
`
`and
`
`indemnify.
`
`Because
`
`an excess
`
`carrier
`
`does
`
`not
`
`have
`
`this
`
`first
`
`duty,
`
`an excess
`
`policy
`
`bears
`
`a comparatively
`
`modest
`
`premium
`
`(see Bovis
`
`Lend
`
`Lease
`
`LMB,
`
`Inc
`
`v Great
`
`Am Ins Co.,
`
`53 AD3d
`
`140,
`
`148 (1"
`
`Dep't
`
`2008).
`
`It
`
`therefore
`
`defeats
`
`the reasonable
`
`expectations
`
`of
`
`the
`
`insured,
`
`who
`
`has paid
`
`a larger
`
`premium
`
`to obtain
`
`coverage
`
`for
`
`litigation
`
`costs,
`
`to cut off
`
`funding
`
`for
`
`those
`
`costs
`
`post
`
`judgment,
`
`where
`
`there
`
`is a valid
`
`reason
`
`to appeal
`
`or otherwise
`
`delay
`
`satisfying
`
`the
`
`judgment.
`
`ACCORDINGLY,
`
`it
`
`is
`
`that
`
`to
`
`ORDERED
`
`the court
`
`grants
`
`that
`
`part
`
`of State National's
`
`motion
`
`consolidate
`
`Scottsdale
`.Scottsdale
`
`Ins. Co.,
`
`v RLI
`
`Ins. Co.,
`
`et al,
`
`Index
`
`No.
`
`153250/2015
`
`with
`
`this
`
`action
`
`under
`
`Index
`
`No.
`
`652471/2011;
`
`and it
`
`is further
`
`ORDERED
`
`that
`
`the parties
`
`are directed
`
`to serve
`
`a copy
`
`of
`
`this
`
`order
`
`and a copy
`
`of
`
`the new caption
`
`upon
`
`the County
`
`Clerk
`
`within
`
`45 days
`
`from the date
`
`of
`
`this
`
`order;
`
`and it
`
`is further
`
`ORDERED
`
`that,
`
`upon
`
`receipt
`
`of
`
`this
`
`order
`
`and the copy
`
`of
`
`the new caption,
`
`the
`
`clerk
`
`is directed
`
`to amend
`
`the
`
`caption
`
`to reflect
`
`the new caption;
`
`and
`
`it
`
`is further
`
`ORDERED
`
`that
`
`the court
`
`denies
`
`that
`
`part
`
`of defendant
`
`State National's
`
`motion
`
`for
`
`summary
`
`judgment,
`
`and
`
`it
`
`is
`
`6
`
`7
`
`

`

`FILED: NEW YORK COUNTY CLERK 02/07/2018 02:10 PM
`NYSCEF DOC. NO. 433
`NEW YORK
`FILED:
`NYSCEF
`430
`DOC.
`NO.
`
`COUNTY
`
`CLERK
`
`7
`
`: 4
`
`INDEX NO. 652471/2011
`
`RECEIVED NYSCEF: 02/07/2018
`INDEX
`NO.
`652471/2011
`
`RECEIVED
`
`NYSCEF:
`
`01/17/2018
`
`ADJUDGED,
`
`DECLARED
`
`AND DECREED
`
`that State National
`
`still
`
`has an
`
`obligation
`
`to pay
`
`statutory
`
`interest,
`
`costs
`
`and still
`
`has a duty
`
`to defend
`
`Granite
`
`Building
`
`2,
`
`LLC,
`
`Kulka
`
`Contracting,
`
`LLC
`
`and FXR Construction,
`
`Inc
`
`in connection
`
`with
`
`the
`
`underlying
`
`action,
`
`Charles
`
`Simon
`
`v Granite
`
`Building
`
`2, LLC,
`
`Index
`
`No.
`
`22101-08,
`
`commenced
`
`in Supreme
`
`Court,
`
`Nassau
`
`County.
`
`Dated:
`
`12, 2018
`January
`New York, NY
`
`E N T E R:
`
`Melissa
`
`A. Crane,
`
`J.S.C.
`
`E <i
`
`l
`
`..
`
`I
`
`7
`
`8 of
`
`8
`
`