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GREAT NORTHERN INSURANCE COMPANY v. KOBRAND CORPORATION

40 A.D.3d 462 (2007)

837 N.Y.S.2d 41

GREAT NORTHERN INSURANCE COMPANY et al., Plaintiffs, v. KOBRAND CORPORATION, Appellant, and SAFEGUARD INSURANCE COMPANY et al., Respondents.

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

Decided May 24, 2007.

An insurer's duty to defend arises when the allegations in the underlying complaint state a cause of action that gives rise to a reasonable possibility of recovery under the policy (Fitzpatrick v American Honda Motor Co., 78 N.Y.2d 61 [1991]). Where, as here, the insurer establishes as a matter of law that there is no possible factual or legal basis upon which it might ultimately be obligated...

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