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AIU INSURANCE COMPANY v. VALLEY FORGE INSURANCE COMPANY

303 A.D.2d 325 (2003)

758 N.Y.S.2d 16

AIU INSURANCE COMPANY, Respondent, v. VALLEY FORGE INSURANCE COMPANY, Appellant and Third-Party Plaintiff-Appellant. GRANITE STATE INSURANCE COMPANY et al., Third-Party Defendants-Respondents.

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

Decided March 27, 2003.

Inasmuch as Valley Forge Insurance Company, the insurer of Kroemer Avenue Associates (Kroemer), did not take part in the settlement negotiations or agree to the $3 million settlement of the underlying personal injury action, Valley Forge is not required to contribute to that settlement. The individual who arranged for the recitation in the release attributing payment of $1 million to Kroemer did not have the authority to bind Kroemer's primary carrier. The record before us...

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