Colnaghi, U.S.A., Ltd. v. Jewelers Protection Services, Ltd., 1

• Decision Date: 12 May 1992
• Docket Number: No. 1,No. 2,1,2
• Citation: 183 A.D.2d 469,583 N.Y.S.2d 427
• Parties: COLNAGHI, U.S.A., LTD. and George Albert Greenwood, on behalf of certain Underwriters at Lloyd's, London and certain foreign insurance companies, Plaintiffs-Respondents, v. JEWELERS PROTECTION SERVICES, LTD., Defendant-Appellant, and Security Consultants, Inc., Defendant. ActionUmberto MELINA, Plaintiff, v. COLNAGHI, U.S.A. LTD., Jewelers Protection Services, Ltd., and Security Consultants, Inc., Defendants. COLNAGHI, U.S.A. LTD., Third-Party Plaintiff-Respondent, v. JEWELERS PROTECTION SERVICES, LTD., Third-Party Defendant-Appellant. Action
• Court: New York Supreme Court — Appellate Division

Page 427

583 N.Y.S.2d 427

183 A.D.2d 469

COLNAGHI, U.S.A., LTD. and George Albert Greenwood, on behalf of certain Underwriters at Lloyd's, London and certain foreign insurance companies, Plaintiffs-Respondents, v. JEWELERS PROTECTION SERVICES, LTD., Defendant-Appellant, and Security Consultants, Inc., Defendant.

Action No. 1

Umberto MELINA, Plaintiff, v. COLNAGHI, U.S.A. LTD., Jewelers Protection Services, Ltd., and Security Consultants, Inc., Defendants.

COLNAGHI, U.S.A. LTD., Third-Party Plaintiff-Respondent, v. JEWELERS PROTECTION SERVICES, LTD., Third-Party Defendant-Appellant.

Action No. 2

Supreme Court, Appellate Division First Department.

May 12, 1992.

Before CARRO, J.P., and KUPFERMAN, ASCH and SMITH, JJ.

MEMORANDUM DECISION.

Order, Supreme Court, New York County (Beatrice Shainswit, J.), entered February 5, 1991, which denied the motion by Jewelers Protection Services, Ltd. ("JPS") for summary judgment dismissing the complaints against it, unanimously modified, on the law, the motion is granted to the extent of dismissing the complaint of Umberto Melina against JPS in action no. 2, and as so modified, affirmed, without costs.

Jewelers Protection Services, Ltd. ("JPS") entered into an agreement with Colnaghi, U.S.A., Ltd. to install, maintain and monitor two burglar alarm systems in the Colnaghi Art Gallery located at 26 East 80th Street in Manhattan. The contract contains provisions absolving JPS of liability for its negligence, and limiting JPS's liability to $250 in any event resulting from breach of the contract. On February 8, 1988, burglars entered the Colnaghi Art Gallery through an unprotected skylight and stole 20 paintings, including two owned by plaintiff Umberto Melina and consigned to Colnaghi for sale, allegedly valued at $2,600,000.

In action no. 1, Colnaghi and George Albert Greenwood (insurance subrogee of Colnaghi) seek $10,000,000 in damages based on JPS's allegedly grossly negligent breach of the security system agreement. In action no. 2, Melina seeks $2,600,000 in damages from Colnaghi (alleging ordinary and gross negligence as bailee) and from JPS (alleging grossly negligent breach of JPS's agreement with Colnaghi). In the third-party action appended to action no. 2, Colnaghi seeks indemnification and/or contribution from JPS in the event Colnaghi is found liable to plaintiff Melina for loss of the consigned paintings.

JPS moved for summary judgment dismissing both complaints and the third-party complaint on the ground that no issue of fact was presented as to its alleged gross negligence, and that Melina was not a third-party beneficiary of the contract between Colnaghi and JPS. The IAS c...