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FADA INDUS. v. FALCHI BLDG CO.

189 Misc.2d 1 (2001)

730 N.Y.S.2d 827

FADA INDUSTRIES, INC., Plaintiff, v. FALCHI BUILDING CO., L.P., et al., Defendants. KOOLWEAR, INC., Third-Party Plaintiff, v. GENERAL ACCIDENT INSURANCE CO., Third-Party Defendant.

Supreme Court, Queens County.

June 22, 2001.

Attorney(s) appearing for the Case

Speyer & Perlberg, Melville, for third-party defendant.

Milner & Coburn, New York City, for Koolwear, Inc., defendant and third-party plaintiff.

Morenus, Marchese & Cardoza, Westbury, for Falchi Building Co., L.P., and another, defendants.

Nicoletti, Horning, Campise & Sweeney, New York City, for plaintiff.

OPINION OF THE COURT

PATRICIA P. SATTERFIELD, J.

This Court holds that a cause of action based upon negligent spoliation of evidence may be asserted by an insured in a third-party action against its insurer based upon the insurer's alleged loss or destruction of key evidence crucial to the insured's defense in the underlying action.

This is an action to recover for damages to property caused by a water leak on March 15, 1998. In June 1999, Fada Industries...

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