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MASSENA v. HEALTHCARE INS CO.

98 N.Y.2d 435 (2002)

779 N.E.2d 167

749 N.Y.S.2d 456

TOWN OF MASSENA, Appellant, v. HEALTHCARE UNDERWRITERS MUTUAL INSURANCE COMPANY, Defendant and Third-Party Plaintiff-Respondent, and FEDERAL INSURANCE COMPANY et al., Respondents, et al., Defendants. MASSENA MEMORIAL HOSPITAL et al., Third-Party Defendants-Appellants, et al., Third-Party Defendants.

Court of Appeals of the State of New York.

Decided September 17, 2002.

Attorney(s) appearing for the Case

David L. Welch, Massena, for appellant.

O'Connor, Yoquinto & Ryan, LLP, Troy (Thomas J. O'Connor of counsel), for defendant and third-party plaintiff-respondent.

Stroock & Stroock & Lavan LLP, New York City (Curtis C. Mechling and Mary E. McEachern of counsel), for Federal Insurance Company, respondent.

James W. Tuffin, Manhasset, and Gabriel Mignella for Physician's Reciprocal Insurers, respondent.

Nixon Peabody LLP, Rochester (William S. Brandt of counsel), for Massena Memorial Hospital and others, third-party defendants-appellants.

Donohue, Sabo, Varley & Armstrong, P.C., Albany (Fred J. Hutchison of counsel), for Christine Rowe-Button, M.D., third-party defendant-appellant.

Donald R. Moy, Lake Success, for Medical Society of the State of New York, amicus curiae.

O'Connell and Aronowitz, Albany (Jeffery J. Sherrin and Rafael A. Olazagasti III of counsel), for Healthcare Association of New York State, amicus curiae.

Judges LEVINE, CIPARICK, WESLEY, ROSENBLATT and GRAFFEO concur; Chief Judge KAYE taking no part.

OPINION OF THE COURT

SMITH, J.

The issue here is whether the defendant insurers have a duty to defend Massena Memorial Hospital and related litigants in an underlying federal lawsuit. We conclude that one insurer has a duty to defend, and we, therefore, modify the order of the Appellate Division.

Olof Franzon is a duly licensed physician and the sole shareholder in his practice, Women's Medical & Surgical Health Care, P.C. Franzon and Women's...

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