Lancer Ins. Co. v. Marine Motor Sales, Inc., 2010 NY Slip Op 30476(U) (N.Y. Sup. Ct. 3/10/2010)

• Citation: 2010 NY Slip Op 30476
• Decision Date: 10 March 2010
• Docket Number: Motion Sequence No. 002.,1501/08.,004.,003.
• Parties: LANCER INSURANCE COMPANY, Plaintiff(s), v. MARINE MOTOR SALES, INC., JOHN PARKS, DONALD TIERNEY, LUIS SANCHEZ, GEICO INDEMNITY COMPANY, THE TRAVELERS INSURANCE GROUP, STATEN ISLAND UNIVERSITY HOSPITAL, RAGHAVE RAJU, M.D., GOETHALS RADIOLOGY, P.C. EMERGENCY MEDICINE SERVICES OF STATEN ISLAND, P.C. AND HEALTHCARE ASSOCIATES IN MEDICINE, P.C, Defendant(s).
• Court: United States State Supreme Court (New York)

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2010 NY Slip Op 30476(U) LANCER INSURANCE COMPANY, Plaintiff(s),
v.
MARINE MOTOR SALES, INC., JOHN PARKS, DONALD TIERNEY, LUIS SANCHEZ, GEICO INDEMNITY COMPANY, THE TRAVELERS INSURANCE GROUP, STATEN ISLAND UNIVERSITY HOSPITAL, RAGHAVE RAJU, M.D., GOETHALS RADIOLOGY, P.C. EMERGENCY MEDICINE SERVICES OF STATEN ISLAND, P.C. AND HEALTHCARE ASSOCIATES IN MEDICINE, P.C, Defendant(s). 1501/08. Motion Sequence No. 002. 003. 004. Supreme Court, Nassau County. March 10, 2010.

KAREN V. MURPHY, J.S.C.

Defendant Travelers Insurance Group ("Travelers") moves this Court for an order pursuant to CPLR § 3212, granting summary judgment dismissing the complaint, declaring that Plaintiff is obligated to defend and indemnify Marine Motor Sales, Inc. ("Marine") and John Parks ("Parks"), and further declaring that the subject motor vehicle is not an uninsured motor vehicle under the insurance policy issued by Travelers.

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Plaintiff cross moves for an order pursuant to CPLR § 3212 granting summary judgment in its favor declaring that its policy of insurance does not provide coverage to defendants Marine Motor and John Parks for claims arising out of an alleged incident of October 17, 2007, that it is not obligated to defend and indemnify defendants Marine Motor and John Parks, that it is not obligated to provide coverage for any claims made by defendant GEICO with respect to the payment of No-Fault benefits for medical treatment of its insured for injuries allegedly sustained as a result of the subject accident. Plaintiff further seeks a judgment declaring it is not obligated to provide No-Fault benefits to defendant Tierney and is not obligated to pay for treatment allegedly rendered to defendant Tierney by defendants Staten Island University Hospital, Raju, Goethals Radiology, Emergency Medicine Services of Staten Island and Healthcare Associates in Medicine.

Defendants Marine and Parks seek an order pursuant to CPLR § 3212 granting summary judgment in their favor declaring that Plaintiff is obligated to defendant and indemnify Marine and Parks in the Richmond County, New York actions against them entitled Luis Sanchez v. Marine Motor Sales, Inc. and John P. Parks, Index No. 45967/2007, Supreme Court, Richmond County and Donald Tierney v. Marine Motor Sales, Inc. and Luis Sanchez, Index No. 102609/2008, Supreme Court, Richmond County. Marine and Parks further seek costs and attorneys fees.

Lancer commenced this action seeking declaratory judgment against defendants as to Lancer's rights, duties and obligations under an automobile policy of insurance issued by Lancer to Marine. At the time of the incident, Parks was operating a vehicle owned by Marine. Donald Tierney was a passenger in the Marine vehicle when the collision occurred. It is alleged that on October 17, 2007 at approximately 12:20 a.m. at or near the intersection of Richmond Road and Four Corners Road in Staten Island, N.Y., the Marine vehicle collided with a vehicle occupied by defendant Luis Sanchez. Travelers had issued an auto insurance policy to Tierney that had Supplemental Uninsured Motorist ("SUM") benefits in the event Tierney was involved in a collision with an uninsured vehicle.

Both Tierney and Sanchez brought separate underlying actions claiming that they were injured in the collision. Travelers, Marine and Parks contend the policy issued to Marine by Lancer was a "garage policy," in effect at the time of the collision thereby providing coverage for the claim. It is alleged Parks was a part-time salesperson for Marine, a used car establishment. Parks alleges that he, Parks, took Tierney out for a test drive in the subject vehicle, one of Marine's cars, and had discussed Tierney's purchase of the subject vehicle when the collision occurred. An insurance claim was submitted by Marine but it was rejected by Lancer as not falling within the scope of the Marine coverage. Lancer alleged the incident occurred later (12:20 a.m.) after Parks and Tierney, a personal friend of Parks, had spent the night dining and drinking. Travelers, Parks and Marine contend the...