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RED APPLE COMPANIES, INC., et al., Plaintiffs-Appellants, and WILLIAMS REAL ESTATE CO., et al., Plaintiffs-Respondents, v. SCOTTDALE INSURANCE COMPANY, etc., et al., Defendants-Respondents.

The motion court properly found that the personal injury cases in the underlying actions against plaintiffs were such that, under the policy, plaintiffs were required to provide defendant with prompt notice, which they failed to do. Accordingly, we find that defendant properly disclaimed and had no obligation to defend and indemnify plaintiffs in the underlying actions. We modify only to the extent of issuing a declaration to that effect (see, Lanza v. Wagner, 11 N.Y.2d 317, 334).

Additionally, the court properly determined that plaintiffs-respondents were entitled to indemnification from plaintiffs-appellants, pursuant to the indemnification clause set forth in the lease involved in one of the underlying cases.

THIS CONSTITUTES THE DECISION AND ORDER OF SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.

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RED APPLE CO., INC. v. SCOTTDALE INS. CO
(Feb 10, 2000)