If the New York Court of Appeals upholds its recent “coverage by estoppel” decision on reargument, then it will likely change the way claims professionals handle New York duty-to-defend matters.
Should the court uphold the decision, as it is commonly understood, an insurer will be far more likely to initiate declaratory judgment actions where it has concluded that its policy does not provide a duty to defend to its insured.
In this article, we will examine the meaning of the court's decision, the Jan. 7 reargument, and the positions that the parties, and amici curiae, have taken in their briefing for that reargument.
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