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07/02/02:         GOSHEN v. MUTUAL LIFE INS. CO. OF NEW YORK

New York Court of Appeals

In “Churning” Cases, New York Plaintiffs Might Have Actionable “Deceptive Act or Practice” Claims

The novel issue before the court concerned the territorial reach of General Business Law § 349: can “hatching a scheme” or originating a marketing campaign in New York in and of itself constitute an actionable deceptive act or practice under the statute, or does the statute also require that the consumer be deceived in New York? The Court concluded that the transaction in which the consumer is deceived must occur in New York.

 

07/02/02:         SLAYKO v. SECURITY MUT. INS. COMPANY

New York Court of Appeals

“Criminal Activity” Exclusion Upheld -- Exclusion Does Not Violate Public Policy

Reversing an Appellate Division decision, the New York high court determines that criminal activity exclusion, which precludes coverage for liability “arising directly or indirectly out of instances, occurrences or allegations of criminal activity by the insured” does not violate public policy and is enforceable. Lower court had held that such exclusion “defies reasonable expectations of insured”.  The court also held that the intentional act exclusion did not apply in the absence of evidence of intent to injure.  Although the insured intended to point the gun and pull the trigger, the court was unwilling to conclude that such actions were inherently harmful, observing that the gun could have been empty.

 

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