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UNIGARD SEC v. N. RIV INS

79 N.Y.2d 576 (1992)

Unigard Security Insurance Company, Inc., as Successor to Unigard Mutual Insurance Company, Inc., Plaintiff, v. North River Insurance Company, Defendant.

Court of Appeals of the State of New York.

Decided May 5, 1992.

Attorney(s) appearing for the Case

Eugene Wollan, Michael H. Goldstein and Robert A. Stern for plaintiff.

Dennis G. Jacobs, Andrew S. Amer and Mary Beth Forshaw for defendant.

Marchisello & Doody for Superintendent of Insurance of the State of New York, amicus curiae.

Chief Judge WACHTLER and Judges TITONE, BELLACOSA and YESAWICH, JR., concur; Judges SIMONS and KAYE taking no part.

HANCOCK, JR., J.

Under New York law, the standard provision in a contract of primary liability insurance requiring the insured to give the insurer prompt notice of a potential claim operates as a condition precedent; thus, for failure to give notice, the primary insurer "need not show prejudice before it can assert the defense of noncompliance" (Security Mut. Ins. Co. v Acker-Fitzsimons Corp., ...

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