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ILLUSION HAIR DESIGNERS, INC. v. COMMERCIAL UNION INS. COS.

181 A.D.2d 527 (1992)

Illusion Hair Designers, Inc., Respondent, v. Commercial Union Insurance Companies, Appellant

Appellate Division of the Supreme Court of the State of New York, First Department.

March 17, 1992

When an insurer brings a declaratory judgment action to determine its duty to defend and indemnify which is unsuccessful, it must pay the insured for the defense of both the underlying action and the declaratory judgment action (Colon v Aetna Life & Cas. Ins. Co., 66 N.Y.2d 6). Furthermore, since a judgment has yet to be entered in this action, defendant has not been prejudiced by any of the proceedings, and the order should...

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