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YANGTZE REALTY, LLC v. SIRIUS AMERICA INSURANCE COMPANY

2010-10190.

90 A.D.3d 744 (2011)

934 N.Y.S.2d 480

2011 NY Slip Op 9117

YANGTZE REALTY, LLC, et al., Appellants, v. SIRIUS AMERICA INSURANCE COMPANY, Respondent.

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

Decided December 13, 2011.

Ordered that the order is affirmed, with costs, and the matter is remitted to the Supreme Court, Queens County, for the entry of a judgment declaring that the defendant is not obligated to defend and indemnify the plaintiffs in the underlying action.

An insurer's duty to defend "`arises whenever the allegations in a complaint state a cause of action that gives rise to the reasonable possibility of recovery under the policy...

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