CITY OF AMSTERDAM v. LAM


270 A.D.2d 603 (2000)

703 N.Y.S.2d 606

CITY OF AMSTERDAM, Appellant, v. RICHARD LAM et al., Defendants, and CIGNA INSURANCE COMPANY, Sued as CIGNA INSURANCE COMPANIES, Respondent.

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

Decided March 9, 2000.


Peters, J.

In this case of first impression, a municipality seeks to hold an insurance company liable for "inducing arson" by overinsuring property. Upon these facts, we cannot find any duty owed to plaintiff since it was not in privity of contract.

Defendant Nissim Mizrachi, the owner and controller of defendant Nizmeister Realty Corporation, purchased a 100-year-old industrial building complex (hereinafter the complex) in the City of Amsterdam, Montgomery...

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