Abdalla v. Yehia

Decision Date15 January 1998
Docket NumberEL-EMER,S
Parties, 1998 N.Y. Slip Op. 219 Sylvia ABDALLA, et al., Plaintiffs, v. El Emeri YEHIA, et al., Defendants. Yehiaued Here in as El Emeri Yehia, Third-Party Plaintiff-Respondent, v. AMERICAN HOME ASSURANCE COMPANY, Third-Party Defendant-Appellant.
CourtNew York Supreme Court — Appellate Division

John M. Downing, Jr., for Third-Party Plaintiff-Respondent.

Alan H. Krystal, for Third-Party Defendant-Appellant.

Before SULLIVAN, J.P., and ROSENBERGER, WALLACH, NARDELLI and COLABELLA, JJ.

MEMORANDUM DECISION.

Order, Supreme Court, Bronx County (Targum, J.), entered on or about December 24, 1996, which granted third-party plaintiff's motion for a declaration that third-party defendant indemnify and provide liability insurance coverage to defendant Ogbenna, unanimously reversed, on the law, without costs, the motion denied, and the third-party complaint dismissed for third-party plaintiff's lack of standing to commence such an impleader. The Clerk is directed to enter judgment in favor of third-party defendant-appellant dismissing the third-party complaint.

The injured plaintiffs sued the driver/owner of the vehicle in which they were riding, and the driver/owner of the vehicle with which they collided. Plaintiffs' driver/owner (defendant/third-party plaintiff herein) then impleaded his co-defendant's insurer, and moved for declaratory judgment on the question of indemnification. The defense in the third-party action was that the co-defendant's insurance policy had been cancelled nine months prior to the accident. The issue considered by the motion court was whether the cancellation of the co-defendant's insurance policy had been accomplished in accordance with law and proper procedure.

What the court overlooked was the issue of standing to bring the third-party action in the first place. The defendant/third-party plaintiff was not the insured of the third-party defendant, and thus had no legally cognizable interest in the relationship between the co-defendant and his insurer (see, Clarendon Place Corp. v. Landmark Ins. Co., 182 A.D.2d 6, 587 N.Y.S.2d 311, appeal dismissed and lv. to appeal denied 80 N.Y.2d 918, 589 N.Y.S.2d 303, 602 N.E.2d 1119). A stranger to an insurance agreement acquires no right to enforce the insurer's obligation until a judgment against the insured has been rendered and remains unsatisfied (Hershberger v. Schwartz, 198 A.D.2d 859, 860, 604 N.Y.S.2d 428). The...

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  • Nap, Inc. v. Shuttletex, Inc., 98 Civ. 7776(VM).
    • United States
    • U.S. District Court — Southern District of New York
    • September 11, 2000
    ...or for damages. USF & G points to some state court cases that support its general position. See, e.g., Abdalla v. Yehia, 246 A.D.2d 373, 667 N.Y.S.2d 736 (1st Dep't 1998); Clarendon Place Corp. v. Landmark Insurance Co., 182 A.D.2d 6, 587 N.Y.S.2d 311 (1st Dep't 1992); Hershberger v. Schwar......
  • Richards v. Select Ins. Co., Inc.
    • United States
    • U.S. District Court — Southern District of New York
    • March 11, 1999
    ...the elements of the direct action claim need be established before declaratory relief is sought. See Abdalla v. Yehia, 246 A.D.2d 373, 373, 667 N.Y.S.2d 736, 736 (1st Dep't 1998) (holding that an injured party lacked standing to bring a declaratory judgment action until a judgment against t......
  • Vargas v. Boston Chicken, Inc.
    • United States
    • U.S. District Court — Eastern District of New York
    • June 27, 2003
    ...Ins. Co. of New York v. Skate Key, Inc., 273 A.D.2d 158, 159, 712 N.Y.S.2d 352, 352-53 (1st Dep't 2000); Abdalla v. Yehia, 246 A.D.2d 373, 374, 667 N.Y.S.2d 736 (1st Dep't 1998); Clarendon Place Corp. v. Landmark Ins. Co., 182 A.D.2d 6, 9-10, 587 N.Y.S.2d 311, 313 (1st Dep't 1992); Univ. Ga......
  • Hartford Fire Ins. Co. v. Mitlof, 99 CIV. 9841(WCC).
    • United States
    • U.S. District Court — Southern District of New York
    • December 15, 2000
    ...injured third parties the right to bring declaratory judgments against marine P & I insurers. 4. See, e.g., Abdalla v. Yehia, 246 A.D.2d 373, 667 N.Y.S.2d 736, 737 (1st Dep't 1998) ("The defendant/third-party plaintiff was not the insured of the third-party defendant, and thus had no legall......
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