STEADFAST INSURANCE COMPANY v. CASDEN PROPERTIES, INC.


41 A.D.3d 120 (2007)

837 N.Y.S.2d 116

STEADFAST INSURANCE COMPANY, Appellant, v. CASDEN PROPERTIES, INC., et al., Respondents and Third-Party Plaintiffs. THE RUBIN GROUP, Third-Party Defendant-Respondent, et al., Third-Party Defendant.

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

Decided June 5, 2007.


The State of California adheres to the "Notice-Prejudice Rule" under which "a defense based on an insured's failure to give timely notice requires the insurer to prove that it suffered substantial prejudice. Prejudice is not presumed from delayed notice alone. The insurer must show actual prejudice, not the mere possibility of prejudice" (Shell Oil Co. v Winterthur Swiss Ins. Co., 12 Cal.App.4th 715, 760-761,

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