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CHASE BANK v. NEW HAMPSHIRE

193 Misc.2d 580 (2002)

749 N.Y.S.2d 632

CHASE MANHATTAN BANK, Plaintiff and Counterclaim Defendant, v. NEW HAMPSHIRE INSURANCE COMPANY et al., Defendants. AXA REASSURANCE S.A., Third-Party Plaintiff, v. STIRLING COOKE BROWN HOLDINGS, LTD., et al., Third-Party Defendants.

Supreme Court, New York County.

May 23, 2002.

Attorney(s) appearing for the Case

Morgan, Lewis & Bockius, New York City (John D. Gordon, III, of counsel), for plaintiff.

Cozen & O'Connor, New York City (Edward Hayum of counsel), for AXA Reassurance S.A., defendant and third-party plaintiff.

Arent Fox Kintner Plotkin & Kahn, PLLC, New York City (William J. McSherry, Jr., of counsel), for third-party defendants.

OPINION OF THE COURT

IRA GAMMERMAN, J.

Introduction

This action involves a dispute over two insurance policies issued in connection with what is known as insurance-backed gap financing of film production. The Chase Manhattan Bank (Chase) provided funding to George Litto Pictures, Inc. (GLP), an entity established by producer George Litto, in two facilities: a $7.5 million working capital facility insured by a contingent extra expense policy, and...

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