Court Upholds TELS Client's Denial of Coverage to Purported Additional Insured

April 24, 2007

HAWTHORNE, New York -- TRAUB EGLIN LIEBERMAN STRAUS LLP (TELS) is pleased to announce that the Bronx Supreme Court recently sided with TELS in upholding our clients' denial of coverage for a Construction Manager on a subcontractor's insurance policy.

In the case of Copeland v. TDX Corporation (Bronx Supreme Court, Index No. 84620-05), a worker on a construction project was injured after being struck by a backhoe. The worker filed suit against the Construction Manager of the project, seeking damages for his injuries. Subsequently, the Construction Manager commenced a third party action against several parties inclduing the subcontractor who employed the injured worker and the subcontractor's insurer, seeking coverage under the subcontractor's general liability insurance policy. The insurer for the subcontractor disclaimed coverage on various policy terms, and a lawsuit against the insurer ensued.

Thanks to the efforts of TELS attorneys, including Robert Nobel, the Bronx Supreme Court agreed with the insurer. Although the subcontract did incorporate certain terms of the prime contract between the Construction Manager and the General Contractor, the insurance procurement provisions of the prime contract were not specifically incorporated into the subcontract. The court also found that even if the Construction Manager did qualify as an additional insured, coverage was properly denied to the Construction Manager based upon its failure to provide notice to the insurer until nine months after the accident, and four months after suit was filed against the Construction Manager.

TELS applauds the efforts of Mr. Nobel on behalf of his client. For more information on Mr. Nobel, a partner with TELS, please visit:

www.tels.com/profiles/robertnobel/