Judge Refuses to Dismiss Chubb Entities Pending Discovery on Proper Party Issues

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Judge Refuses to Dismiss Chubb Entities Pending Discovery on Proper

Party Issues

by Publishing

http://www.imakenews.com/pureaircontrols/e_article000401943.cfm?

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MINEOLA, N.Y. — A New York judge has denied, for the time being, a

motion to dismiss Chubb Corp. and other Chubb affiliates from a mold

coverage lawsuit brought by homeowners insured by a Chubb

subsidiary. Shaevitz v. Chubb Corp., No. 15180/04 (N.Y. Sup., Nassau

Cty.).

New York County Supreme Court Justice Feinman said the Chubb

entities could renew their motion for partial summary judgment after

completion of discovery.

and Debra Shaevitz are seeking damages for bad faith and breach

of contract against their homeowners' insurer, Great Northern

Insurance Co., a Chubb subsidiary, and the Chubb entities. The

Shaevitzes sought coverage in 2004 for a water valve leak and

related mold contamination and they contend that Great Northern's

claim denial violated New York Insurance Law and other business

statutes.

In moving for partial summary judgment, Chubb submitted an affidavit

from a company supervisor who asserted that the Chubb entities are

separate and distinct and that the Shaevitz policy specifically

provides that it was 'issued by Great Northern Insurance Company.'

Chubb also contended that there is no privity between the parties

and, thus, no grounds for a breach of contract claim or other

liability.

But in denying the motion, Justice Feinman listed the Shaevitzes'

submissions, which included language referring to 'Chubb' on the

face of the policy, an indication that the policy was a 'Chubb

Masterpiece Policy,' directives to report claims to a local 'Chubb'

office, and statements that 'Chubb' has provided coverage since

1882.

The Shaevitzes also noted that they received premium bills

from 'Chubb' and wrote checks to 'Chubb,' the justice said.

The Shaevitzes represent themselves.

Sedgwick, Detert, Moran & Arnold are counsel for Chubb Corp. and

related entities.

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