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LILLIAN AUSTIN et al., Plaintiffs, v. JUSTER ASSOCIATES, Defendant and Third-Party Defendant-Respondent, et al., Defendant, and CALDOR, INC., Defendant and Third-Party Plaintiff-Respondent. KEMPER NATIONAL INSURANCE COMPANIES et al., Third-Party Defendants-Appellants.

Ordered that the judgment is modified by deleting the fourth and fifth decretal paragraphs thereof; as so modified, the judgment is affirmed, with costs to the defendant third-party plaintiff, and the matter is remitted to the Supreme Court, Rockland County, for an evidentiary hearing on the issue of the reasonableness of the attorneys' fees and for entry of an appropriate amended judgment in accordance herewith.

We agree with the court's award of summary judgment to the defendant third-party plaintiff, Caldor, Inc. (hereinafter Caldor). Caldor was an additional insured under the subject Kemper policy, and therefore Kemper must provide coverage to Caldor for its liability in the underlying personal injury action. That Caldor agreed to indemnify Juster Associates (Kemper's primary insured), in a lease agreement between Caldor and Juster Associates, does not absolve Kemper of its responsibility to provide coverage to Caldor, since "[a] contract to procure or provide insurance coverage is * * * distinct from and treated differently than an agreement to indemnify" ( Roblee v Corning Community Coll., 134 A.D.2d 803, 804; see, Kinney v Lisk Co., 76 N.Y.2d 215).

However, the court erred when it awarded attorneys' fees to Caldor without first conducting a hearing to determine the reasonableness of the fees ( see, Industrial Equip. Credit Corp. v Green, 62 N.Y.2d 903; Matter of First Natl. Bank v Brower, 42 N.Y.2d 471; Fleet Credit Corp. v Hutter Co., 207 A.D.2d 380). Accordingly, this matter is remitted for a hearing to establish the reasonableness of the attorneys' fees.

The appellants' remaining contentions are without merit. Rosenblatt, J.P., Ritter, Hart and Krausman, JJ., concur.

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AUSTIN v. JUSTER ASSOCIATES
(Dec 29, 1995)