Obomsawin v. Bailey

• Decision Date: 10 June 2011
• Court: New York Supreme Court — Appellate Division
• Parties: Jules R. OBOMSAWIN and Robbin Obomsawin, doing business as Beaver Creek Construction Services, Plaintiffs–Appellants,v.BAILEY, HASKELL & LALONDE AGENCY, INC., also known as Bailey and Haskell Associates, Inc., Defendant–Respondent.

85 A.D.3d 1566
924 N.Y.S.2d 878
2011 N.Y. Slip Op. 04848

Jules R. OBOMSAWIN and Robbin Obomsawin, doing business as Beaver Creek Construction Services, Plaintiffs–Appellants,
v.
BAILEY, HASKELL & LALONDE AGENCY, INC., also known as Bailey and Haskell Associates, Inc., Defendant–Respondent.

Supreme Court, Appellate Division, Fourth Department, New York.

June 10, 2011.

Appeal from an order of the Supreme Court, Oneida County (Norman I. Siegel, A.J.), entered August 4, 2010. The order granted the motion of defendant to dismiss the complaint.Gustave J. Detraglia, Jr., Utica, for plaintiffs–appellants.Keidel, Weldon & Cunningham LLP, Syracuse (Howard S. Kronberg of Counsel), for defendant–respondent.MEMORANDUM:

[85 A.D.3d 1567] Plaintiffs own a small business that they operate out of a barn on their residential property. Defendant procured commercial general liability insurance coverage and supplemental commercial inland marine insurance coverage for two pieces of heavy equipment used for the business, and another insurance agent obtained first-party property damage coverage for plaintiffs' personal and business property. A fire thereafter destroyed the barn and its contents, including the property of plaintiffs' customers. The loss sustained by plaintiffs was not fully covered under the commercial general liability or property damage policies, and they commenced this action alleging negligence, breach of contract and negligent misrepresentation based upon defendant's alleged failure to provide appropriate advice with respect to their insurance needs and to secure sufficient coverage for their business property and the property of their customers.

Supreme Court properly granted defendant's motion seeking summary judgment dismissing the complaint. “[A]n insurance agent's duty to its customer is generally defined by the nature of the customer's request for coverage” ( M & E Mfg. Co. v. Frank H. Reis, Inc., 258 A.D.2d 9, 11, 692 N.Y.S.2d 191; see Madhvani v. Sheehan, 234 A.D.2d 652, 654, 650 N.Y.S.2d 490). “Absent a specific request for coverage not already in a client's policy or the existence of a special relationship with the client, an insurance agent or broker has no continuing duty to advise, guide[ ] or direct a client to obtain additional coverage” ( Loevner v. Sullivan & Strauss Agency, Inc., 35 A.D.3d 392, 393, 825 N.Y.S.2d 145, lv. denied 8 N.Y.3d 808, 834 N.Y.S.2d 88, 865 N.E.2d 1255; see Murphy v. Kuhn, 90 N.Y.2d 266, 270, 660 N.Y.S.2d 371, ...