ZURICH INS v. SHEARSON LEHMAN


84 N.Y.2d 309 (1994)

642 N.E.2d 1065

618 N.Y.S.2d 609

Zurich Insurance Company, Respondent, v. Shearson Lehman Hutton, Inc., Formerly Known as Shearson Lehman Brothers, Inc., Appellant.

Court of Appeals of the State of New York.

Decided October 25, 1994.


Attorney(s) appearing for the Case

McCormick, Fitzpatrick & Mertz, P. C. (Gregory S. Mertz, Keith J. Kasper and Michael J. Straub, of the Vermont Bar, admitted pro hac vice, of counsel), and Jacobson & Triggs, New York City, for appellant.

Siff Rosen, P. C., New York City (Ignatius John Melito and S. Dwight Stephens of counsel), for respondent.

Chief Judge KAYE and Judges TITONE, BELLACOSA, SMITH, LEVINE and CIPARICK concur.


SIMONS, J.

This is a declaratory judgment action instituted by plaintiff insurer seeking a determination that it had no duty to indemnify its insured for punitive damages awarded against the insured in two separate out-of-State slander actions. The question is whether New York's public policy precluding indemnification for punitive damages should prevail over the public...

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