FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`STATE
`SUPREME
`
`OF NEW YORK
`: COUNTY
`COURT
`
`OF ORLEANS
`
`LYNDONVILLE
`LYNDONVILLE
`
`CENTRAL
`ELEMENTARY
`
`SCHOOL
`DISTRICT
`SCHOOL,
`
`and
`
`Plaintiffs,
`
`v.
`
`MUTUAL
`UTICA
`INSURANCE
`ARTS MUTUAL
`INSURANCE
`ASSURANCE
`NATIONAL
`And AB 524 DOE,
`
`COMPANY,
`COMPANY,
`COMPANY,
`
`GRAPHIC
`UTICA
`AB 511 DOE,
`
`SUMMONS
`
`Index
`
`No.:
`
`Defendants.
`=========-================-=========
`TO THE ABOVE-NAMED
`
`DEFENDANTS:
`
`YOU ARE HEREBY
`
`SUMMONED
`
`to answer
`
`the Verified
`
`Complaint
`
`in this
`
`action
`
`and
`
`to serve
`
`a copy
`
`of your
`
`Answer,
`
`or,
`
`if
`
`the Verified
`
`Complaint
`
`is not
`
`served
`
`with
`
`the Summons,
`
`to
`
`serve
`
`a Notice
`
`of Appearance
`
`on the
`
`plaintiffs'
`
`attorney
`
`within
`
`twenty
`
`(20)
`
`days
`
`after
`
`the
`
`service
`
`of
`
`this
`
`Summons,
`
`exclusive
`
`of
`
`the
`
`date
`
`of
`
`service,
`
`or within
`
`thirty
`
`(30)
`
`days
`
`after
`
`completion
`
`of
`
`service
`
`where
`
`service
`
`is made
`
`in any
`
`other
`
`manner.
`
`In
`
`case
`
`of
`
`your
`
`failure
`
`to appear
`
`or answer,
`
`be taken
`
`against
`
`you
`
`default
`
`for
`
`relief
`
`demanded
`
`herein.
`
`judgment
`
`will
`
`by
`
`the
`
`Plaintiffs
`
`designate
`
`New York
`
`State
`
`Supreme
`
`Court
`
`for Orleans
`
`County
`
`as the place
`
`of
`
`trial
`
`on the
`
`basis
`
`of
`
`the
`
`of
`
`the
`
`location
`
`of where
`
`plaintiffs
`
`are situated,
`
`and because
`
`a substantial
`
`part
`
`of
`
`the
`
`events
`
`or
`
`omissions
`
`giving
`
`rise
`
`to the
`
`claim
`
`occurred
`
`there.
`
`The
`
`nature
`
`of
`
`this
`
`lawsuit
`
`is a
`
`declaratory
`
`judgment
`
`action
`
`surrounding
`
`insurance
`
`coverage
`
`disputes
`
`arising
`
`from
`
`claims
`
`brought
`
`under
`
`the Child
`
`Victims
`
`Act
`
`that
`
`are the
`
`subject
`
`of
`
`lawsuits
`
`that
`
`are currently
`
`pending
`
`before
`
`The
`
`Court
`
`styled:
`
`"
`
`AB 511 Doe
`
`v. Lyndonville
`
`Central
`
`School
`
`District
`
`and
`
`Lyndonville
`
`Elementary
`
`School
`
`(NYS
`
`Sup. Ct. Orleans
`
`Co.
`
`Index
`
`No.:
`
`20-46602);
`
`and
`
`1
`
`1 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`"
`
`AB 524 Doe
`
`v. Lyndonville
`
`Central
`
`School
`
`District
`
`and
`
`Lyndonville
`
`Elementary
`
`School
`
`(NYS
`
`Sup. Ct. Orleans
`
`Co.
`
`Index
`
`No.:
`
`21-47386).
`
`The
`
`relief
`
`sought
`
`herein
`
`is declaratory
`
`relief.
`
`Dated:
`
`October
`
`11, 2023
`
`COOKE
`
`DOYLE
`
`LLC
`
`By:
`
`Jes
`
`J.
`
`coke,
`
`Esq.
`
`Street,
`
`Suite
`
`700
`
`403 Main
`The
`Brisbane
`Building
`New York
`320-7777
`(716)
`306-5587
`(716)
`CookeDoyle.com
`
`14203
`
`Buffalo,
`Tel.:
`Fax:
`
`Jesse(
`
`Attorneys
`Lyndonville
`Lyndonville
`
`for
`
`Plaintiffs
`Central
`
`Elementary
`
`District
`School
`School
`
`and
`
`2
`
`2 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`OF NEW YORK
`STATE
`: COUNTY
`OF ORLEANS
`COURT
`SUPREME
`==============-======--=============
`LYNDONVILLE
`CENTRAL
`SCHOOL
`DISTRICT
`LYNDONVILLE
`ELEMENTARY
`SCHOOL,
`
`and
`
`Plaintiffs,
`
`v.
`
`MUTUAL
`INSURANCE
`UTICA
`ARTS MUTUAL
`INSURANCE
`NATIONAL
`ASSURANCE
`And AB 524 DOE,
`
`COMPANY,
`COMPANY,
`COMPANY,
`
`GRAPHIC
`UTICA
`AB 511 DOE,
`
`VERIFIED
`
`COMPLAINT
`
`Index
`
`No.:
`
`====-=======
`
`Defendants.
`-=====-===================
`
`Plaintiffs
`
`Lyndonville
`
`Central
`
`School
`
`District
`
`("Lyndonville
`
`C.S.D.")
`
`and
`
`Lyndonville
`
`Elementary
`
`School
`
`("Lyndonville
`
`Elementary"),
`
`by
`
`and
`
`through
`
`their
`
`attorneys
`
`Cooke
`
`Doyle
`
`LLC,
`
`for
`
`t h e i r V e r i f
`
`i e d Complaint
`
`against
`
`defendants
`
`Utica
`
`Mutual
`
`Insurance
`
`Company,
`
`Graphic
`
`Arts
`
`Mutual
`
`Insurance
`
`Company,
`
`Utica
`
`National
`
`Assurance
`
`Company,
`
`AB 5 1 1 Doe,
`
`and AB 524 Doe
`
`hereby
`
`allege
`
`as follows:
`
`FACTUAL
`
`BACKGROUND
`
`A.
`
`The Parties
`
`all
`
`C.S.D.
`
`was
`
`and
`
`1.
`
`At
`
`times
`
`material,
`
`Lyndonville
`
`continues
`
`to be a public
`
`school
`
`district
`
`located
`
`in the County
`
`of Orleans
`
`and State
`
`of New York.
`
`2.
`
`At
`
`all
`
`times
`
`material,
`
`Lyndonville
`
`Elementary
`
`was
`
`and
`
`continues
`
`to be a public
`
`school
`
`located
`
`in the County
`
`of Orleans
`
`and State
`
`of New York.
`
`3.
`
`At
`
`all
`
`times
`
`material,
`
`defendant
`
`Utica
`
`Mutual
`
`Insurance
`
`Company
`
`is
`
`an
`
`insurance
`
`company
`
`domiciled
`
`within
`
`the
`
`State
`
`of New
`
`York
`
`with
`
`offices
`
`at
`
`180 Genesee
`
`Street,
`
`New
`
`Hartford,
`
`NY 13413
`
`and
`
`selling
`
`insurance
`
`and
`
`otherwise
`
`conducting
`
`business
`
`3
`
`3 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`in the County
`
`of Orleans
`
`and
`
`State
`
`of New
`
`York.
`
`4.
`
`Graphic
`
`Arts
`
`Mutual
`
`Insurance
`
`Company
`
`is
`
`an
`
`insurance
`
`company
`
`domiciled
`
`within
`
`the
`
`State
`
`of New York
`
`with
`
`offices
`
`at 180 Genesee
`
`Street,
`
`New
`
`Hartford,
`
`NY 13413
`
`and
`
`selling
`
`insurance
`
`and
`
`otherwise
`
`conducting
`
`business
`
`in the County
`
`of Orleans
`
`and
`
`State
`
`of New York.
`
`5.
`
`Utica
`
`National
`
`Assurance
`
`Company
`
`is an insurance
`
`company
`
`domiciled
`
`within
`
`offices
`
`the
`
`State
`
`of New York
`
`with
`
`at
`
`180 Genesee
`
`Street,
`
`New
`
`Hartford,
`
`NY 13413
`
`and
`
`selling
`
`insurance
`
`and
`
`otherwise
`
`conducting
`
`business
`
`in the County
`
`of Orleans
`
`and
`
`State
`
`of
`
`New
`
`York.
`
`6.
`
`Utica
`
`Mutual
`
`Insurance
`
`Company,
`
`Graphic
`
`Arts Mutual
`
`Insurance
`
`Company,
`
`and
`
`Utica
`
`National
`
`Assurance
`
`Company
`
`(hereinafter
`
`referred
`
`to collectively
`
`as "Utica")
`
`are related
`
`organizations
`
`operating
`
`within
`
`Utica
`
`National
`
`Insurance
`
`Group.
`
`AB
`
`against
`
`7.
`
`Defendant
`
`511
`
`Doe
`
`has
`
`alleged
`
`claims
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary
`
`under
`
`the Child
`
`Victims
`
`Act
`
`in an underlying
`
`lawsuit
`
`styled
`
`AB 511 Doe
`
`v. Lyndonville
`
`Central
`
`School
`
`District
`
`and
`
`Lyndonville
`
`Elementary
`
`School
`
`(NYS
`
`Sup. Ct. Orleans
`
`Co.
`
`Index
`
`No.:
`
`20-46602)
`
`(the
`
`"AB
`
`511 Doe
`
`Action").
`
`8.
`
`Upon
`
`information
`
`and
`
`belief,
`
`AB 511
`
`Doe
`
`is
`
`a pseudonym
`
`authorized
`
`by
`
`an
`
`Deborah
`
`J.S.C.
`
`Amended
`
`Order
`
`of
`
`the Honorable
`
`A. Chimes
`
`dated
`
`August
`
`13, 2018
`
`to protect
`
`AB
`
`511 Doe's
`
`identity.
`
`9.
`
`Upon
`
`information
`
`and
`
`belief,
`
`AB
`
`511 Doe
`
`was
`
`and
`
`is a resident
`
`in the State
`
`of
`
`New York
`
`at all
`
`times
`
`material.
`
`10.
`
`Defendant
`
`AB
`
`524
`
`Doe
`
`has
`
`alleged
`
`claims
`
`against
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary
`
`under
`
`the Child
`
`Victims
`
`Act
`
`in an underlying
`
`lawsuit
`
`styled
`
`AB 524 Doe
`
`4
`
`4 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`v. Lyndonville
`
`Central
`
`School
`
`District
`
`and
`
`Lyndonville
`
`Elementary
`
`School
`
`(NYS
`
`Sup. Ct. Orleans
`
`Co.
`
`Index
`
`No.:
`
`21-47386)
`
`(the
`
`"AB
`
`524 Doe
`
`Action").
`
`11.
`
`Upon
`
`information
`
`and
`
`belief,
`
`AB
`
`524
`
`Doe
`
`is
`
`a pseudonym
`
`authorized
`
`by
`
`an
`
`Amended
`
`Order
`
`of
`
`the Honorable
`
`Deborah
`
`A. Chimes
`
`J.S.C.
`
`dated
`
`August
`
`13, 2018
`
`to protect
`
`AB
`
`524 Doe's
`
`identity.
`
`12.
`
`Upon
`
`information
`
`and
`
`belief,
`
`AB 524 Doe
`
`was
`
`and
`
`is a resident
`
`in the State
`
`of
`
`New York
`
`at all
`
`times
`
`material.
`
`13.
`
`Plaintiffs
`
`have
`
`named
`
`AB 511 Doe
`
`and AB 524 Doe
`
`as defendants
`
`in this
`
`action
`
`as parties
`
`potentially
`
`interested
`
`in the
`
`controversy
`
`and/or
`
`outcome
`
`of
`
`this
`
`action.
`
`14.
`
`Plaintiffs
`
`do
`
`not
`
`seek
`
`any
`
`affirmative
`
`relief
`
`against
`
`defendants
`
`AB 511 Doe
`
`and
`
`in this
`
`AB 524 Doe
`
`action.
`
`B.
`
`15.
`
`Jurisdiction
`
`and
`
`Venue
`
`Plaintiffs
`
`bring
`
`this
`
`declaratory
`
`judgment
`
`action
`
`for
`
`an Order:
`
`(1)
`
`declaring
`
`that Utica
`
`must
`
`provide
`
`plaintiffs
`
`with
`
`insurance
`
`coverage
`
`under
`
`the
`
`policies
`
`alleged
`
`herein
`
`in connection
`
`with
`
`the AB 511 Doe
`
`Action
`
`and the AB
`
`524 Doe
`
`Action;
`
`(2)
`
`declaring
`
`that
`
`Utica
`
`must
`
`provide
`
`plaintiffs
`
`with
`
`a defense
`
`under
`
`the policies
`
`alleged
`
`herein
`
`in connection
`
`with
`
`the AB 511 Doe
`
`Action
`
`and the AB 524 Doe
`
`Action;
`
`(3)
`
`declaring
`
`that Utica
`
`is obligated
`
`to indemnity
`
`plaintiffs
`
`in connection
`
`with
`
`the
`
`AB
`
`511
`
`Doe
`
`Action
`
`and
`
`the AB 524
`
`Doe
`
`Action
`
`pursuant
`
`to
`
`the
`
`policies
`
`alleged
`
`herein;
`
`(4)
`
`awarding
`
`a judgment
`
`in
`
`favor
`
`of
`
`plaintiffs
`
`and
`
`against
`
`Utica
`
`for
`
`any
`
`and
`
`all
`
`5
`
`5 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`defense
`
`costs
`
`and
`
`attorneys'
`
`fees
`
`incurred
`
`by
`
`plaintiffs
`
`in
`
`the
`
`defense
`
`of
`
`the
`
`AB 511 Doe
`
`Action
`
`and
`
`the AB 524 Doe
`
`Action;
`
`(5)
`
`declaring
`
`defendants'
`
`purported
`
`disclaimer
`
`letters
`
`dated
`
`November
`
`20,
`
`2020
`
`and
`
`July
`
`19, 2021
`
`void
`
`and
`
`unenforceable;
`
`and
`
`(6) providing
`
`for
`
`such
`
`other,
`
`further,
`
`and
`
`different
`
`relief
`
`as may
`
`be just,
`
`proper
`
`and
`
`with
`
`costs
`
`disbursements
`
`of
`
`this
`
`action.
`
`equitable,
`
`together
`
`the
`
`and
`
`16.
`
`There
`
`exist
`
`real,
`
`substantial,
`
`and
`
`justiciable
`
`controversies
`
`between
`
`plaintiffs
`
`and
`
`Utica
`
`regarding
`
`Utica's
`
`refusal
`
`to
`
`acknowledge
`
`its
`
`policy
`
`obligations
`
`to plaintiffs
`
`to defend
`
`and
`
`indemnify
`
`plaintiffs
`
`in connection
`
`with
`
`the
`
`underlying
`
`litigation
`
`described
`
`herein.
`
`17.
`
`A judicial
`
`determination
`
`and
`
`declaration
`
`of
`
`the
`
`parties'
`
`rights
`
`and
`
`responsibilities
`
`appropriate
`
`as plaintiffs
`
`have
`
`no
`
`other
`
`adequate
`
`to
`
`resolve
`
`the
`
`is necessary
`
`and
`
`now,
`
`remedy
`
`controversy.
`
`18.
`
`19.
`
`20.
`
`This
`
`Court may
`
`issue
`
`such
`
`a declaration
`
`pursuant
`
`to CPLR
`
`§ 3001.
`
`This
`
`Court
`
`has jurisdiction
`
`over
`
`the
`
`parties
`
`pursuant
`
`to CPLR
`
`§ 301.
`
`Venue
`
`is proper
`
`pursuant
`
`to CPLR
`
`§ 503
`
`in that
`
`plaintiffs
`
`are
`
`situated
`
`in Orleans
`
`and
`
`because
`
`a substantial
`
`part
`
`of
`
`the
`
`events
`
`or omissions
`
`giving
`
`rise
`
`to the
`
`claim
`
`occurred
`
`County
`
`there.
`
`exceeds
`
`the jurisdictional
`
`limits
`
`of all
`
`lower
`
`courts.
`
`21.
`
`C.
`
`22.
`
`The
`
`amount
`
`in controversy
`
`The
`
`Underivine
`
`Litigation
`
`On
`
`or
`
`about
`
`February
`
`9,
`
`2022,
`
`AB
`
`511
`
`Doe
`
`filed
`
`an Amended
`
`Complaint
`
`asserting
`
`claims
`
`under
`
`the Child
`
`Victims
`
`Act
`
`in the AB 511 Doe
`
`action.
`
`23.
`
`In
`
`AB
`
`511
`
`Doe's
`
`Amended
`
`Complaint,
`
`AB
`
`511
`
`Doe
`
`alleges
`
`that
`
`from
`
`approximately
`
`1986
`
`to
`
`1987
`
`when
`
`AB 511 Doe was
`
`approximately
`
`11 to
`
`12 years
`
`old,
`
`Terrance
`
`6
`
`6 of 22
`
`

`

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`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`Houseman
`
`engaged
`
`in unpermitted
`
`sexual
`
`contact
`
`with
`
`AB 511 Doe while
`
`Terrance
`
`Houseman
`
`was
`
`employed
`
`as a teacher
`
`for
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary.
`
`24.
`
`In the AB 511 Doe
`
`action,
`
`AB 511 Doe
`
`asserts
`
`against
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary
`
`causes
`
`of
`
`action
`
`for
`
`negligence,
`
`negligent
`
`hiring,
`
`negligent
`
`training
`
`and
`
`supervision,
`
`negligent
`
`retention,
`
`and
`
`breach
`
`of
`
`the
`
`duty
`
`to report
`
`under
`
`New
`
`York
`
`Social
`
`Law
`
`Services
`
`§ 413.
`
`25.
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary
`
`had
`
`no
`
`knowledge
`
`of AB 511
`
`Doe's
`
`claims
`
`and
`
`allegations
`
`prior
`
`to AB 511 Doe's
`
`commencement
`
`of
`
`legal
`
`proceedings.
`
`26.
`
`In their
`
`Answer
`
`filed
`
`February
`
`9, 2022
`
`in the AB 511 Doe
`
`action,
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary
`
`deny
`
`all
`
`substantial
`
`allegations
`
`in AB 511 Doe's
`
`complaint
`
`and
`
`assert
`
`various
`
`affirmative
`
`defenses
`
`including,
`
`but
`
`not
`
`limited
`
`to,
`
`that
`
`Lyndonville
`
`C.S.D.
`
`or
`
`whether
`
`and
`
`Lyndonville
`
`Elementary
`
`had
`
`no
`
`actual,
`
`constructive,
`
`imputed
`
`notice,
`
`written
`
`or
`
`oral,
`
`of any
`
`danger,
`
`defect,
`
`or any
`
`inappropriate
`
`acts
`
`or behavior.
`
`27.
`
`On or about
`
`June
`
`11, 2021,
`
`defendant
`
`AB 524 Doe
`
`filed
`
`a Complaint
`
`asserting
`
`claims
`
`under
`
`the Child
`
`Victims
`
`Act
`
`in the AB 524 Doe
`
`action.
`
`28.
`
`InAB
`
`524 Doe's
`
`complaint,
`
`AB 524 Doe alleges
`
`that
`
`from
`
`approximately
`
`1982
`
`to
`
`1983
`
`when
`
`AB 524 Doe was
`
`approximately
`
`10 to
`
`11 years
`
`old,
`
`Terrance
`
`Houseman
`
`engaged
`
`Houseman
`
`in unpermitted
`
`sexual
`
`contact
`
`with
`
`AB 524 Doe while
`
`Terrance
`
`was
`
`employed
`
`as a
`
`teacher
`
`for
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary.
`
`29.
`
`In the AB 524 Doe
`
`action,
`
`AB 524 Doe
`
`asserts
`
`against
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary
`
`causes
`
`of
`
`action
`
`for
`
`negligence,
`
`negligent
`
`hiring,
`
`negligent
`
`training
`
`and
`
`supervision,
`
`negligent
`
`retention,
`
`and
`
`breach
`
`of
`
`the
`
`duty
`
`to
`
`report
`
`under
`
`New
`
`York
`
`Social
`
`Services
`
`Law
`
`§ 413.
`
`7
`
`7 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`30.
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary
`
`had
`
`no
`
`knowledge
`
`of AB 524
`
`Doe's
`
`claims
`
`and
`
`allegations
`
`prior
`
`to AB 524 Doe's
`
`commencement
`
`of
`
`legal
`
`proceedings.
`
`31.
`
`In their
`
`Answer
`
`filed
`
`August
`
`10, 2021
`
`in the AB 524 Doe
`
`action,
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary
`
`deny
`
`all
`
`substantial
`
`allegations
`
`in AB 524 Doe's
`
`complaint
`
`and
`
`assert
`
`various
`
`affirmative
`
`defenses
`
`including,
`
`but
`
`not
`
`limited
`
`to,
`
`that
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary
`
`had
`
`no
`
`actual,
`
`constructive,
`
`or
`
`imputed
`
`notice,
`
`whether
`
`written
`
`or
`
`oral,
`
`of
`
`any
`
`danger,
`
`defect,
`
`or any
`
`inappropriate
`
`acts
`
`or behavior.
`
`32.
`
`The AB 511 Doe
`
`action
`
`and
`
`the AB 524 Doe
`
`action
`
`remain
`
`pending
`
`before
`
`The
`
`Court.
`
`2024.
`
`33.
`
`Trial
`
`is currently
`
`scheduled
`
`to commence
`
`in the AB 511 Doe
`
`action
`
`on March
`
`6,
`
`34.
`
`in
`
`AB
`
`524
`
`Doe
`
`is
`
`and
`
`trial
`
`has
`
`not
`
`yet
`
`Discovery
`
`the
`
`action
`
`ongoing
`
`been
`
`scheduled.
`
`D.
`
`35.
`
`Utica's
`
`Policies
`
`and
`
`Coverage
`
`Position
`
`Utica
`
`issued
`
`to
`
`plaintiffs
`
`certain
`
`insurance
`
`policies
`
`in
`
`effect
`
`at
`
`the
`
`times
`
`of
`
`the
`
`alleged
`
`misconduct
`
`that
`
`is the
`
`subject
`
`of
`
`the AB 511 Doe
`
`Action
`
`and
`
`the AB 524 Doe
`
`Action.
`
`36.
`
`The
`
`complaints
`
`in the AB 511 Doe Action
`
`and the AB 524 Doe Action
`
`allege
`
`causes
`
`of action
`
`that
`
`fall within
`
`coverage
`
`of one
`
`or more
`
`of
`
`that Utica
`
`issued
`
`the policies
`
`to plaintiffs.
`
`37.
`
`Plaintiffs'
`
`first
`
`notice
`
`of any
`
`claim
`
`or allegations
`
`by AB 511 Doe
`
`and AB 524 Doe
`
`was
`
`upon
`
`plaintiffs'
`
`receipt
`
`of
`
`suit
`
`papers
`
`in the AB 511 Doe
`
`Action
`
`and
`
`the AB 524 Doe Action.
`
`38.
`
`Plaintiffs
`
`promptly
`
`notified
`
`Utica
`
`of AB 511 Doe's
`
`and AB 524 Doe's
`
`claims
`
`upon
`
`plaintiffs'
`
`first
`
`becoming
`
`aware
`
`of
`
`the
`
`allegations
`
`by AB 511 Doe
`
`and AB 524 Doe.
`
`39.
`
`In
`
`1990,
`
`plaintiffs
`
`became
`
`aware
`
`of
`
`allegations
`
`against
`
`Terrance
`
`Houseman
`
`by
`
`8
`
`8 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`another
`
`student,
`
`not AB 511 Doe
`
`or AB 524 Doe.
`
`40.
`
`Upon
`
`receiving
`
`the
`
`first
`
`reports
`
`of
`
`these
`
`allegations,
`
`plaintiffs
`
`immediately
`
`removed
`
`Terrance
`
`Houseman
`
`from
`
`school
`
`property,
`
`reported
`
`the
`
`allegations
`
`to
`
`the
`
`police,
`
`and
`
`notified
`
`Utica.
`
`41.
`
`42.
`
`These
`
`allegations
`
`came
`
`from
`
`a student
`
`who
`
`is not AB 511 Doe
`
`or AB 524 Doe.
`
`When
`
`this
`
`student
`
`served
`
`upon
`
`Lyndonville
`
`C.S.D.
`
`a Summons
`
`with
`
`Notice
`
`on or
`
`about
`
`January
`
`5, 1992,
`
`Utica
`
`assigned
`
`defense
`
`counsel
`
`to represent
`
`Lyndonville
`
`C.S.D.
`
`43.
`
`Utica's
`
`assigned
`
`defense
`
`counsel
`
`continued
`
`to represent
`
`Lyndonville
`
`C.S.D.
`
`until
`
`the
`
`1992
`
`litigation
`
`was
`
`concluded.
`
`44.
`
`Because
`
`of
`
`plaintiffs'
`
`immediate
`
`notice
`
`to Utica
`
`and
`
`Utica's
`
`involvement
`
`from
`
`was
`
`on immediate
`
`notice
`
`of
`
`the
`
`accuser's
`
`and the specifies
`
`of
`
`the accuser's
`
`inception,
`
`Utica
`
`identity
`
`allegations
`
`in the
`
`1992
`
`litigation.
`
`45.
`
`Utica
`
`funded
`
`Lyndonville
`
`C.S.D.'s
`
`defense
`
`in
`
`the
`
`1992
`
`litigation
`
`pursuant
`
`to
`
`policies
`
`that Utica
`
`issued
`
`to plaintiffs.
`
`46.
`
`Utica's
`
`assigned
`
`defense
`
`counsel
`
`represented
`
`Lyndonville
`
`C.S.D.
`
`until
`
`the
`
`1992
`
`litigation
`
`reached
`
`a final
`
`disposition.
`
`47.
`
`Utica
`
`made
`
`the
`
`indemnity
`
`payments
`
`on behalf
`
`of Lyndonville
`
`C.S.D.
`
`necessary
`
`to
`
`bring
`
`the
`
`1992
`
`litigation
`
`to a final
`
`disposition.
`
`48.
`
`Utica
`
`knew
`
`no later
`
`than
`
`1992
`
`that
`
`the
`
`accuser
`
`in the
`
`1992
`
`litigation
`
`was
`
`unrelated
`
`to the
`
`plaintiffs
`
`who
`
`first
`
`came
`
`forward
`
`decades
`
`later
`
`in the AB 511 Doe
`
`Action
`
`and
`
`the AB 524
`
`Action.
`
`49.
`
`Plaintiffs
`
`first
`
`became
`
`aware
`
`of AB 511 Doe's
`
`allegations
`
`upon
`
`plaintiffs'
`
`receipt
`
`of
`
`suit
`
`papers
`
`in the AB 511 Doe
`
`Action.
`
`9
`
`9 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`50.
`
`51.
`
`Plaintiffs
`
`immediately
`
`notified
`
`Utica
`
`of AB 511 Doe's
`
`allegations.
`
`By
`
`letter
`
`dated
`
`November
`
`20,
`
`2020,
`
`Utica
`
`responded
`
`to
`
`plaintiffs'
`
`request
`
`for
`
`coverage
`
`in connection
`
`with
`
`the AB 511 Doe
`
`Action.
`
`52.
`
`In
`
`its November
`
`20,
`
`2020
`
`letter
`
`to
`
`plaintiffs,
`
`Utica
`
`confirmed
`
`that
`
`"it
`
`issued
`
`a
`
`liability
`
`policy
`
`bearing
`
`policy
`
`number
`
`FMP
`
`S00445
`
`and
`
`an umbrella
`
`policy
`
`bearing,
`
`at various
`
`number
`
`LU4829
`
`and,
`
`CULP
`
`412115,
`
`the period
`
`of alleged
`
`abuse."
`
`times,
`
`policy
`
`potentially,
`
`during
`
`53.
`
`Utica's
`
`November
`
`20,
`
`2020
`
`letter
`
`to plaintiffs
`
`provides
`
`that
`
`"Utica
`
`will
`
`provide
`
`a
`
`courtesy
`
`defense
`
`to
`
`[plaintiffs]
`
`for
`
`the
`
`allegations
`
`in the Complaint,
`
`pending
`
`the
`
`completion
`
`of
`
`its
`
`investigation."
`
`54.
`
`In its November
`
`20,
`
`2020
`
`letter
`
`to plaintiffs,
`
`Utica
`
`states
`
`that
`
`it
`
`"denies
`
`coverage
`
`to
`
`[plaintiffs]
`
`to the
`
`extent
`
`that
`
`[AB
`
`511's]
`
`allegations
`
`that
`
`[plaintiffs]
`
`knew
`
`of
`
`the
`
`alleged
`
`abuser's
`
`for
`
`sexual
`
`and/or
`
`propensity
`
`abuse
`
`are proven,
`
`that Utica's
`
`investigation
`
`confirms
`
`that
`
`[plaintiffs]
`
`had
`
`knowledge
`
`of a potential
`
`claim
`
`but
`
`failed
`
`to report
`
`that
`
`knowledge
`
`as soon
`
`as
`
`practicable."
`
`55.
`
`Utica
`
`has
`
`provided
`
`a "courtesy
`
`defense"
`
`to
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary
`
`in the AB 511 Action.
`
`56.
`
`Because
`
`of
`
`plaintiffs'
`
`immediate
`
`notice
`
`to Utica
`
`and
`
`Utica's
`
`involvement
`
`from
`
`inception,
`
`Utica
`
`was
`
`on immediate
`
`notice
`
`of AB 511 Doe's
`
`identity.
`
`57.
`
`Plaintiff
`
`in the AB 511 Doe
`
`Action
`
`is not
`
`the
`
`accuser
`
`in the
`
`1992
`
`litigation.
`
`58.
`
`Utica
`
`knew
`
`or
`
`should
`
`have
`
`known
`
`no
`
`later
`
`than
`
`2020
`
`that AB 511 Doe
`
`is not
`
`the
`
`accuser
`
`in the
`
`1992
`
`litigation.
`
`59.
`
`In the years
`
`since
`
`Utica
`
`issued
`
`its November
`
`20,
`
`2020
`
`letter,
`
`Utica
`
`has not presented
`
`any
`
`evidence
`
`that
`
`plaintiffs
`
`knew
`
`of
`
`the
`
`alleged
`
`abuser's
`
`propensity
`
`for
`
`sexual
`
`abuse
`
`or
`
`that
`
`plaintiffs
`
`had
`
`knowledge
`
`of
`
`a potential
`
`claim
`
`but
`
`failed
`
`to
`
`report
`
`that
`
`knowledge
`
`as
`
`soon
`
`as
`
`10
`
`10 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`practicable.
`
`60.
`
`In
`
`the
`
`years
`
`since
`
`Utica
`
`issued
`
`its November
`
`20,
`
`2020
`
`letter,
`
`Utica
`
`has
`
`neither
`
`advised
`
`of
`
`the
`
`results
`
`of
`
`its
`
`investigation
`
`nor
`
`supplemented
`
`the
`
`position
`
`set
`
`forth
`
`in its November
`
`20,
`
`2020
`
`letter.
`
`61.
`
`Utica
`
`is aware
`
`that
`
`there
`
`is no evidence
`
`that
`
`plaintiffs
`
`knew
`
`of
`
`the
`
`alleged
`
`abuser's
`
`for
`
`sexual
`
`or
`
`that
`
`plaintiffs
`
`had
`
`knowledge
`
`of a potential
`
`claim
`
`but
`
`propensity
`
`abuse
`
`that
`
`knowledge
`
`as soon
`
`as practicable.
`
`failed
`
`to report
`
`62.
`
`As
`
`part
`
`of
`
`Utica's
`
`"courtesy
`
`defense,"
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary's
`
`defense
`
`counsel
`
`has
`
`reported
`
`to Utica
`
`throughout
`
`the AB 511 Doe
`
`Action.
`
`63.
`
`As
`
`part
`
`of
`
`Utica's
`
`"courtesy
`
`defense,"
`
`Utica
`
`funded
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary's
`
`motion
`
`for
`
`summary
`
`judgment
`
`in the AB 511 Doe
`
`Action
`
`filed
`
`on June
`
`of
`
`the AB 511 Doe
`
`on the
`
`basis
`
`that
`
`"[AB
`
`claims
`
`6, 2023
`
`seeking
`
`a dismissal
`
`Action
`
`511 Doe's]
`
`fail
`
`because
`
`the District
`
`had
`
`no
`
`notice
`
`or
`
`knowledge
`
`that Houseman
`
`was
`
`a danger
`
`to students
`
`or
`
`had
`
`a propensity
`
`for
`
`sexual
`
`abuse
`
`prior
`
`to Houseman's
`
`arrest
`
`in
`
`1990"
`
`and
`
`"As
`
`the District
`
`had
`
`no
`
`notice
`
`of
`
`the
`
`dangerous
`
`propensities
`
`of Houseman,
`
`it
`
`cannot
`
`be
`
`liable
`
`for
`
`negligence,
`
`negligent
`
`hiring,
`
`negligent
`
`training,
`
`negligent
`
`retention,
`
`or negligent
`
`supervision."
`
`refusal
`
`forth
`
`in its November
`
`letter
`
`64.
`
`Utica's
`
`to withdraw
`
`the reservations
`
`set
`
`20, 2020
`
`runs
`
`directly
`
`counter
`
`to all
`
`available
`
`evidence
`
`and
`
`the motion
`
`that
`
`it paid
`
`defense
`
`counsel
`
`to make
`
`in the AB 511 Doe
`
`Action.
`
`65.
`
`66.
`
`The
`
`coverage
`
`defenses
`
`raised
`
`in Utica's
`
`November
`
`20,
`
`2020
`
`letter
`
`do not
`
`apply.
`
`Plaintiffs
`
`first
`
`became
`
`aware
`
`of AB 524 Doe's
`
`allegations
`
`upon
`
`plaintiffs'
`
`receipt
`
`of
`
`suit
`
`papers
`
`in the AB 524 Doe
`
`Action.
`
`67.
`
`Plaintiffs
`
`immediately
`
`notified
`
`Utica
`
`of AB 524 Doe's
`
`allegations.
`
`11
`
`11 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`68.
`
`By letter
`
`dated
`
`July
`
`19, 2021,
`
`Utica
`
`responded
`
`to
`
`plaintiffs'
`
`request
`
`for
`
`coverage
`
`in
`
`connection
`
`with
`
`the AB 524 Doe
`
`Action.
`
`69.
`
`In its
`
`July
`
`19, 2021
`
`letter
`
`to plaintiffs,
`
`Utica
`
`confirmed
`
`that
`
`it may
`
`have
`
`issued
`
`to
`
`plaintiffs
`
`a "Special
`
`Multi-Peril
`
`Policy
`
`("SMP
`
`S00014
`
`.
`
`.
`
`. effective
`
`during
`
`the period
`
`of alleged
`
`Policy")
`
`abuse."
`
`issued
`
`to
`
`the District,
`
`policy
`
`number
`
`letter
`
`to plaintiffs
`
`provides
`
`"Utica
`
`will
`
`provide
`
`70.
`
`Utica's
`
`July
`
`19, 2021
`
`that
`
`a courtesy
`
`defense
`
`to [plaintiffs]
`
`for
`
`the
`
`allegations
`
`in the Complaint
`
`[in
`
`the AB 524 Doe
`
`Action]."
`
`71.
`
`In its July
`
`19, 2021
`
`letter
`
`to plaintiffs,
`
`Utica
`
`acknowledges
`
`that
`
`"The
`
`Complaint
`
`[in
`
`the AB
`
`524
`
`Doe
`
`Action]
`
`may
`
`meet
`
`the
`
`definition
`
`of
`
`an
`
`'occurrence.'"
`
`and
`
`"[w]hile
`
`Mr.
`
`Houseman's
`
`actions
`
`as alleged
`
`constitute
`
`intentional
`
`conduct,
`
`the District
`
`may
`
`not
`
`have
`
`expended
`
`fall within
`
`the
`
`grant
`
`of coverage
`
`of
`
`the SMP
`
`or
`
`intended
`
`the
`
`abuse.
`
`Therefore,
`
`the Complaint
`
`may
`
`Policy".
`
`72.
`
`Utica's
`
`July
`
`19,
`
`2021
`
`letter
`
`to plaintiffs
`
`then
`
`denies
`
`coverage
`
`"to
`
`the
`
`extent
`
`that
`
`[AB
`
`524 Doe's]
`
`allegations
`
`are proven
`
`or established
`
`by Utica's
`
`on-going
`
`investigation".
`
`73.
`
`Utica
`
`has
`
`provided
`
`a "courtesy
`
`defense"
`
`to
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary
`
`in the AB 524 Action.
`
`74.
`
`Because
`
`of
`
`plaintiffs'
`
`immediate
`
`notice
`
`to Utica
`
`and Utica's
`
`involvement
`
`from
`
`on immediate
`
`notice
`
`of
`
`the AB 524 Doe's
`
`identity.
`
`inception,
`
`Utica
`
`was
`
`75.
`
`Plaintiff
`
`in the AB 524 Doe
`
`Action
`
`is not
`
`the plaintiff
`
`in the AB 511 Doe
`
`Action
`
`or
`
`the
`
`accuser
`
`in the
`
`1992
`
`litigation.
`
`76.
`
`Utica
`
`knew
`
`or
`
`should
`
`have
`
`known
`
`no
`
`later
`
`than
`
`2021
`
`that AB 524 Doe
`
`is not
`
`the
`
`plaintiff
`
`in the AB 511 Doe
`
`Action
`
`or
`
`the
`
`accuser
`
`in the
`
`1992
`
`litigation.
`
`77.
`
`In the
`
`years
`
`since
`
`Utica
`
`issued
`
`its
`
`July
`
`19, 2021
`
`letter,
`
`Utica
`
`has
`
`not
`
`presented
`
`any
`
`12
`
`12 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`evidence
`
`that
`
`plaintiffs
`
`knew
`
`of
`
`the
`
`alleged
`
`abuser's
`
`propensity
`
`for
`
`sexual
`
`abuse
`
`or
`
`that
`
`plaintiffs
`
`had
`
`knowledge
`
`of a potential
`
`claim
`
`but
`
`failed
`
`to report
`
`that
`
`knowledge
`
`as soon
`
`as practicable.
`
`78.
`
`In the
`
`years
`
`since
`
`Utica
`
`issued
`
`its
`
`July
`
`19, 2021
`
`letter,
`
`Utica
`
`has neither
`
`advised
`
`of
`
`the results
`
`of
`
`its
`
`investigation
`
`nor
`
`supplemented
`
`the position
`
`set
`
`forth
`
`in its July
`
`19, 2021
`
`letter.
`
`79.
`
`Utica
`
`is aware
`
`that
`
`that
`
`plaintiffs
`
`knew
`
`of
`
`there
`
`is no evidence
`
`the
`
`alleged
`
`abuser's
`
`propensity
`
`for
`
`sexual
`
`abuse
`
`or
`
`that
`
`plaintiffs
`
`had
`
`knowledge
`
`of a potential
`
`claim
`
`but
`
`failed
`
`to report
`
`that
`
`knowledge
`
`as soon
`
`as practicable.
`
`80.
`
`As
`
`part
`
`of
`
`Utica's
`
`"courtesy
`
`defense,"
`
`Lyndonville
`
`C.S.D.
`
`and
`
`Lyndonville
`
`Elementary's
`
`defense
`
`counsel
`
`has
`
`reported
`
`to Utica
`
`throughout
`
`the AB 524 Doe
`
`Action.
`
`81.
`
`Utica's
`
`investigation
`
`that
`
`has been
`
`"ongoing"
`
`since
`
`no later
`
`than
`
`July
`
`19, 2021
`
`has
`
`not
`
`revealed
`
`that
`
`plaintiffs
`
`knew
`
`of
`
`the
`
`any
`
`evidence
`
`alleged
`
`abuser's
`
`propensity
`
`for
`
`sexual
`
`abuse
`
`or
`
`that
`
`plaintiffs
`
`had
`
`knowledge
`
`of a potential
`
`claim
`
`but
`
`failed
`
`to report
`
`that
`
`knowledge
`
`as soon
`
`as
`
`practicable.
`
`82.
`
`Discovery
`
`in the AB 511 Doe
`
`Action
`
`and
`
`the AB 524 Action
`
`has not
`
`revealed
`
`any
`
`evidence
`
`that
`
`plaintiffs
`
`knew
`
`of
`
`the
`
`alleged
`
`abuser's
`
`propensity
`
`for
`
`sexual
`
`abuse
`
`or
`
`that
`
`plaintiffs
`
`had
`
`knowledge
`
`of a potential
`
`claim
`
`but
`
`failed
`
`to report
`
`that
`
`knowledge
`
`as soon
`
`as practicable.
`
`Had
`
`such
`
`evidence
`
`been
`
`83.
`
`any
`
`revealed,
`
`Utica
`
`would
`
`be obligated
`
`to timely
`
`disclaim
`
`coverage
`
`on this
`
`basis.
`
`84.
`
`Utica's
`
`refusal
`
`to withdraw
`
`the reservations
`
`set
`
`forth
`
`in its July
`
`19, 2021
`
`letter
`
`runs
`
`directly
`
`counter
`
`to all
`
`available
`
`evidence
`
`and
`
`the motion
`
`that
`
`it paid
`
`defense
`
`counsel
`
`to make
`
`in
`
`the AB 511 Doe
`
`Action.
`
`85.
`
`86.
`
`The
`
`coverage
`
`defenses
`
`raised
`
`in Utica's
`
`July
`
`19, 2021
`
`letter
`
`do not
`
`apply.
`
`To
`
`date,
`
`Utica
`
`has
`
`refused
`
`to withdraw
`
`its
`
`reservations
`
`and
`
`acknowledge
`
`its policy
`
`13
`
`13 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`obligations
`
`to plaintiffs.
`
`REQUESTED
`
`RELIEF:
`
`DECLARATORY
`
`JUDGMENT
`
`OF ACTION
`CAUSE
`FIRST
`BREACH
`OF CONTRACT
`
`87.
`
`Plaintiffs
`
`incorporate
`
`herein
`
`by
`
`reference
`
`hereto
`
`the
`
`allegations
`
`of paragraphs
`
`1
`
`through
`
`86
`
`above
`
`as if more
`
`fully
`
`set
`
`forth
`
`herein.
`
`88.
`
`Utica
`
`issued
`
`to
`
`plaintiffs
`
`a Special
`
`Multi-Peril
`
`Policy
`
`bearing
`
`policy
`
`number
`
`FMP S00445
`
`that
`
`was
`
`in
`
`effect
`
`on
`
`the
`
`dates
`
`of
`
`the
`
`alleged
`
`misconduct
`
`in
`
`the AB 511 Doe
`
`Action
`
`and/or
`
`the AB 524 Doe
`
`Action.
`
`89.
`
`Utica
`
`issued
`
`to
`
`plaintiffs
`
`an umbrella
`
`policy
`
`bearing
`
`policy
`
`number
`
`LU4829
`
`that
`
`was
`
`in effect
`
`on the
`
`dates
`
`of
`
`the
`
`alleged
`
`misconduct
`
`in the AB 511 Doe
`
`Action
`
`and/or
`
`the
`
`AB 524 Doe
`
`Action.
`
`90.
`
`Utica
`
`issued
`
`to
`
`plaintiffs
`
`an
`
`umbrella
`
`policy
`
`bearing
`
`policy
`
`number
`
`CULP
`
`in
`
`of
`
`the
`
`alleged
`
`412115
`
`that
`
`was
`
`effect
`
`on
`
`the
`
`dates
`
`misconduct
`
`in the AB 511
`
`Doe
`
`Action
`
`and/or
`
`the AB 524 Doe
`
`Action.
`
`91.
`
`Utica
`
`issued
`
`to
`
`plaintiffs
`
`a Special
`
`Multi-Peril
`
`Policy
`
`bearing
`
`policy
`
`number
`
`S00014
`
`that was
`
`in effect
`
`on the dates
`
`of
`
`the
`
`alleged
`
`misconduct
`
`in the AB 511 Doe
`
`Action
`
`and/or
`
`the AB 524 Doe
`
`Action.
`
`92.
`
`Pursuant
`
`to
`
`the
`
`policies
`
`that
`
`Utica
`
`acknowledged
`
`issuing
`
`to
`
`plaintiffs,
`
`Utica
`
`agreed
`
`to
`
`defend
`
`and
`
`indemnify
`
`plaintiffs
`
`against
`
`claims
`
`of negligence,
`
`even
`
`if
`
`such
`
`claims
`
`are
`
`meritless.
`
`93.
`
`Pursuant
`
`to the policies
`
`that Utica
`
`acknowledged
`
`issuing
`
`to plaintiffs,
`
`Utica
`
`agreed
`
`to defend
`
`and
`
`indemnify
`
`plaintiffs
`
`for
`
`claims
`
`of bodily
`
`injury
`
`caused
`
`by
`
`an occurrence.
`
`94.
`
`The
`
`policies
`
`that
`
`Utica
`
`acknowledged
`
`issuing
`
`to plaintiffs
`
`were
`
`in full
`
`force
`
`and
`
`14
`
`14 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`effect
`
`at
`
`the
`
`time
`
`of
`
`the
`
`alleged
`
`misconduct
`
`in the AB 511 Doe
`
`Action
`
`and/or
`
`the AB 524 Doe
`
`Action.
`
`95.
`
`Pursuant
`
`to
`
`the
`
`policies
`
`that
`
`Utica
`
`acknowledged
`
`issuing
`
`to
`
`plaintiffs,
`
`plaintiffs
`
`qualified
`
`as insureds
`
`at
`
`the
`
`time
`
`of
`
`the
`
`alleged
`
`misconduct
`
`in the AB 511 Doe
`
`Action
`
`and/or
`
`the
`
`AB 524 Doe
`
`Action.
`
`96.
`
`AB 511 Doe's
`
`complaint
`
`in the AB 511 Doe
`
`Action
`
`alleges
`
`negligence
`
`and
`
`other
`
`against
`
`plaintiffs.
`
`covered
`
`claims
`
`97.
`
`AB 524 Doe's
`
`complaint
`
`in the AB 524 Doe
`
`Action
`
`alleges
`
`negligence
`
`and
`
`other
`
`covered
`
`claims
`
`against
`
`plaintiffs.
`
`98.
`
`Utica's
`
`July
`
`19, 2021
`
`letter
`
`acknowledges
`
`that
`
`the AB 524 Doe's
`
`complaint
`
`in the
`
`AB 524 Doe
`
`Action
`
`"may
`
`meet
`
`the
`
`defmition
`
`of an
`
`"occurrence."
`
`99.
`
`Utica's
`
`July
`
`19,
`
`2021
`
`letter
`
`further
`
`acknowledges
`
`that
`
`"[w]hile
`
`Mr.
`
`Houseman's
`
`actions
`
`as alleged
`
`constitute
`
`intentional
`
`the
`
`not have
`
`expected
`
`or
`
`intended
`
`conduct,
`
`[plaintiffs]
`
`may
`
`the
`
`abuse.
`
`Therefore,
`
`the Complaint
`
`may
`
`fall within
`
`the
`
`grant
`
`of
`
`coverage
`
`of
`
`the SMP Policy".
`
`100.
`
`In the
`
`years
`
`since
`
`Utica's
`
`July
`
`19, 2021
`
`letter,
`
`Utica
`
`has not
`
`amended
`
`its
`
`coverage
`
`position.
`
`101.
`
`In
`
`the
`
`years
`
`since
`
`Utica's
`
`July
`
`19,
`
`2021
`
`letter,
`
`Utica's
`
`investigation
`
`has
`
`not
`
`uncovered
`
`any
`
`evidence
`
`that
`
`plaintiffs
`
`expected
`
`or
`
`intended
`
`the
`
`alleged
`
`abuse.
`
`102.
`
`Utica's
`
`July
`
`19,
`
`2021
`
`letter
`
`"disclaims
`
`coverage
`
`for
`
`the
`
`[plaintiffs']
`
`failure
`
`to
`
`provide
`
`notice
`
`as soon
`
`as practicable
`
`..
`
`. to the extent
`
`that Utica's
`
`ongoing
`
`investigation
`
`establishes
`
`that
`
`the
`
`[plaintiffs]
`
`failed
`
`to provide
`
`notice
`
`as required
`
`by
`
`any
`
`policy
`
`that was
`
`in force
`
`and
`
`effect."
`
`103.
`
`In the
`
`years
`
`since
`
`Utica's
`
`July
`
`19, 2021
`
`letter,
`
`Utica
`
`has
`
`not
`
`amended
`
`its
`
`coverage
`
`position.
`
`15
`
`15 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`104.
`
`In
`
`the
`
`years
`
`since
`
`Utica's
`
`July
`
`19,
`
`2021
`
`letter,
`
`Utica's
`
`investigation
`
`has
`
`not
`
`uncovered
`
`any
`
`evidence
`
`that
`
`plaintiffs
`
`failed
`
`to provide
`
`notice
`
`as required
`
`by
`
`any
`
`policy
`
`that was
`
`in force
`
`and
`
`effect.
`
`105.
`
`Based
`
`upon
`
`the
`
`facts
`
`and
`
`allegations
`
`in the AB 511 Doe
`
`Action
`
`and
`
`the AB 524
`
`Doe
`
`Action
`
`and
`
`pursuant
`
`to the
`
`policies
`
`that Utica
`
`issued
`
`to plaintiffs,
`
`plaintiffs
`
`are entitled
`
`to a
`
`attorneys'
`
`defense,
`
`including
`
`reimbursement
`
`of all expended
`
`costs
`
`and
`
`fees,
`
`including
`
`fees,
`
`as well
`
`as
`
`full
`
`indemnification
`
`for
`
`any
`
`judgment
`
`or
`
`settlement
`
`that may
`
`yet
`
`occur
`
`in the AB 511
`
`Doe
`
`Action
`
`and
`
`the AB 524 Doe
`
`Action.
`
`106.
`
`To
`
`date,
`
`Utica
`
`has
`
`provided
`
`to
`
`plaintiffs
`
`only
`
`a "courtesy
`
`defense
`
`pending
`
`the
`
`completion
`
`of
`
`its
`
`investigation"
`
`which
`
`Utica
`
`reserves
`
`the
`
`right
`
`to withdraw.
`
`arises
`
`whenever
`
`the
`
`allegations
`
`in
`
`a complaint
`
`107.
`
`The
`
`duty
`
`to
`
`defend
`
`against
`
`the
`
`insured
`
`fall within
`
`the
`
`scope
`
`of
`
`the
`
`risks
`
`undertaken
`
`by
`
`the
`
`insurer.
`
`108.
`
`Utica
`
`acknowledged
`
`that
`
`allegations
`
`in the AB 511 Doe
`
`Action
`
`and AB 524 Doe
`
`Action
`
`fall within
`
`the
`
`scope
`
`of
`
`the
`
`risks
`
`undertaken
`
`by Utica.
`
`109.
`
`Utica
`
`has
`
`not
`
`timely
`
`asserted
`
`any
`
`meritorious
`
`coverage
`
`defense
`
`that
`
`would
`
`terminate
`
`its policy
`
`obligations.
`
`Utica
`
`owes
`
`plaintiffs
`
`a defense
`
`without
`
`reservation
`
`110.
`
`AB 524 Doe
`
`Action.
`
`in the AB 511 Doe
`
`Action
`
`and
`
`111.
`
`Utica's
`
`refusal
`
`to acknowledge
`
`its policy
`
`obligations
`
`to plaintiffs,
`
`including
`
`Utica's
`
`duties
`
`to defend
`
`and
`
`indemnify
`
`plaintiffs
`
`in the AB 511 Doe
`
`Action
`
`and
`
`the AB 524 Doe Action
`
`without
`
`reservation
`
`is in breach
`
`of
`
`the
`
`policies
`
`that Utica
`
`issued
`
`to plaintiffs.
`
`112.
`
`To
`
`date,
`
`Utica
`
`has
`
`refused
`
`to withdraw
`
`its reservation
`
`and
`
`acknowledge
`
`its duty
`
`to
`
`provide
`
`defense
`
`and
`
`indemnification
`
`to plaintiffs
`
`in the AB 511 Doe
`
`Action
`
`and
`
`the AB 524 Doe
`
`16
`
`16 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`Action,
`
`despite
`
`its obligation
`
`to do so.
`
`113.
`
`Utica's
`
`purported
`
`coverage
`
`defenses
`
`do not
`
`apply
`
`to bar
`
`coverage
`
`to plaintiffs.
`
`114.
`
`Utica's
`
`refusal
`
`to withdraw
`
`its
`
`reservations
`
`and
`
`to
`
`acknowledge
`
`its
`
`policy
`
`obligations
`
`to plaintiff
`
`is in breach
`
`of Utica's
`
`policy
`
`obligations.
`
`115.
`
`Accordingly,
`
`plaintiffs
`
`respectfully
`
`request
`
`an Order:
`
`(1)
`
`declaring
`
`that Utica
`
`must
`
`provide
`
`plaintiffs
`
`with
`
`insurance
`
`coverage
`
`under
`
`the
`
`policies
`
`alleged
`
`herein
`
`in connection
`
`with
`
`the AB 511 Doe
`
`Action
`
`and the AB
`
`524 Doe
`
`Action;
`
`(2)
`
`declaring
`
`that Utica
`
`must
`
`provide
`
`plaintiffs
`
`with
`
`a defense
`
`under
`
`the
`
`policies
`
`alleged
`
`herein
`
`in connection
`
`with
`
`the AB 511 Doe
`
`Action
`
`and
`
`the AB 524 Doe
`
`Action;
`
`(3)
`
`declaring
`
`that Utica
`
`is obligated
`
`to indemnity
`
`plaintiffs
`
`in connection
`
`with
`
`the
`
`Action
`
`and
`
`the AB
`
`524
`
`Action
`
`pursuant
`
`AB 511
`
`Doe
`
`alleged
`
`herein;
`
`Doe
`
`to
`
`the
`
`policies
`
`(4)
`
`awarding
`
`a judgment
`
`in
`
`favor
`
`of
`
`plaintiffs
`
`and
`
`against
`
`Utica
`
`for
`
`any
`
`and
`
`all
`
`defense
`
`costs
`
`and
`
`attorneys'
`
`fees
`
`incurred
`
`by
`
`plaintiffs
`
`in the
`
`defense
`
`of
`
`the
`
`AB 511 Doe
`
`Action
`
`and
`
`the AB 524 Doe
`
`Action;
`
`(5)
`
`declaring
`
`defendants'
`
`purported
`
`disclaimer
`
`letters
`
`dated
`
`November
`
`20,
`
`2020
`
`and
`
`July
`
`19, 2021
`
`void
`
`and
`
`unenforceable;
`
`and
`
`(6) providing
`
`for
`
`such
`
`other,
`
`further,
`
`and
`
`different
`
`relief
`
`as may
`
`be just,
`
`proper
`
`and
`
`equitable,
`
`together
`
`with
`
`the
`
`costs
`
`and
`
`disbursements
`
`of
`
`this
`
`action.
`
`SECOND
`CAUSE
`HAS NOT ISSUED
`
`OF ACTION
`A VALID
`DISCLAIMER
`
`UTICA
`
`116.
`
`Plaintiffs
`
`incorporate
`
`herein
`
`by
`
`reference
`
`hereto
`
`the
`
`allegations
`
`of
`
`paragraphs
`
`1
`
`17
`
`17 of 22
`
`

`

`FILED: ORLEANS COUNTY CLERK 10/12/2023 02:19 PM
`NYSCEF DOC. NO. 1
`
`INDEX NO. E23-01101
`
`RECEIVED NYSCEF: 10/12/2023
`
`through
`
`115
`
`above
`
`as if more
`
`fully
`
`set
`
`forth
`
`herein.
`
`117.
`
`There
`
`is no reasonable
`
`basis
`
`for Utica
`
`to deny
`
`coverage
`
`to plaintiffs.
`
`118.
`
`Even
`
`if
`
`there
`
`was,
`
`which
`
`there
`
`is not,
`
`Utica
`
`has
`
`not
`
`timely
`
`disclaimed
`
`coverage
`
`under
`
`New York
`
`Insurance
`
`Law
`
`§ 3420(d).
`
`119.
`
`Utica's
`
`November
`
`20, 2020
`
`letter
`
`to plaintiffs
`
`is the only
`
`coverage
`
`position
`
`letter
`
`that Utica
`
`issued
`
`to plaintiffs
`
`relative
`
`to the AB 511 Doe
`
`Action.
`
`an
`
`120.
`
`Utica
`
`has
`
`not
`
`supplemented
`
`its
`
`coverage
`
`position,
`
`provided
`
`plaintiffs
`
`with
`
`