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McGRAW-HILL EDUC., INC. v. ILLINOIS NATL. INS. CO.

655708/16. 10124A. 10124.

178 A.D.3d 532 (2019)

116 N.Y.S.3d 16

2019 NY Slip Op 08960

McGraw-Hill Education, Inc., Appellant-Respondent, v. Illinois National Insurance Company et al., Respondents-Appellants.

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

Decided December 17, 2019.

Attorney(s) appearing for the Case

Dykema Gossett PLLC, Washington, DC ( Lewis K. Loss of the bar of the District of Columbia, admitted pro hac vice, of counsel), for appellant-respondent.

Carlton Fields, P.A., New York ( Robert Novack of counsel), for respondents-appellants.

Concur—Manzanet-Daniels, J.P., Gische, Webber, Moulton, JJ.

Exclusions I and D of the insurance policies, which preclude coverage for claims arising out of a contract, do not apply here. For a claim to "arise" out of a contract, the existence of the contract must be the "but for" cause of the loss (see Mount Vernon Fire Ins. Co. v Creative Hous., 88 N.Y.2d 347, 352 [1996]). Although the parties had license agreements, the licensors could have brought claims based on copyright regardless of...

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