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EAST 115TH STREET REALTY CORP. v. FOCUS & STRUGA BUILDING DEVELOPERS LLC

5319, 604164/07, 590610/08.

85 A.D.3d 511 (2011)

925 N.Y.S.2d 56

2011 NY Slip Op 5125

EAST 115TH STREET REALTY CORP., Plaintiff, v. FOCUS & STRUGA BUILDING DEVELOPERS LLC et al., Defendants, GREAT AMERICAN INSURANCE COMPANY OF NEW YORK, Respondent, and ABAD CONSULTING (a Corporation), Appellant. (And a Third-Party Action.)

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

Decided June 14, 2011.

The motion court determined that the policy was void ab initio due to material misrepresentations on the insurance application submitted by defendant-appellant Abad Consulting (broker).

Insurance Law § 3105 permits an insurer to rescind a policy where the application contains a material misrepresentation (see American Sur. Co. of N.Y. v Patriotic Assur. Co., Ltd., 242 N.Y. 54, 64 [1926]). Here, the application stated that no structural alterations to the...

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