• New York Appellate Division Rules on Allocation to Insurers When No Insurance Is Available In the Marketplace
  • January 18, 2017 | Author: Pamela A. Palmer
  • Law Firm: Morris Polich & Purdy LLP - San Diego Office
  • Allocation for long-tail environmental claims where continuous harm occurred over periods of time when liability insurance was not available in the marketplace has a varied and complex history across the United States. Some states allow for allocation for those time periods to insurers that were on the risk at other times. (See e.g. Owens-Illinois, Inc. v. United Ins. Co., 650 A.2d 974 (N.J. 1994)). Other states do not. (See e.g. Bradford Oil Co. v. Stonington Ins. Co., 54 A.3d 983) (Vt. 2011)). The New York Appellate Division is the latest state appellate court to tackle this issue. In the recent decision, Keyspan Gas East Corp. v. Munich Reinsurance America, Inc., 143 A.D.3d 86 (N.Y. App. Div. 2016), the Appellate Division held that an insurer does not have to indemnify an insured for losses that are attributable to time periods when liability insurance was otherwise unavailable in the marketplace.