Ottaviano v. Genex Co-Op., Inc.
| Decision Date | 04 February 2005 |
| Docket Number | CA 04-01430. |
| Parties | MICHAEL C. OTTAVIANO, Plaintiff, v. GENEX COOPERATIVE, INC., Respondent and Third-Party Plaintiff-Respondent, et al., Defendants. PRAXAIR, INC., Third-Party Defendant. ALLIANZ INSURANCE COMPANY, Appellant. |
| Court | New York Supreme Court — Appellate Division |
Appeal from an order of the Supreme Court, Erie County (Eugene M. Fahey, J.), entered April 30, 2004. The order, among other things, denied that part of the cross motion of Reed Smith LLP for an order substituting it as counsel for defendant Genex Cooperative, Inc. and denied the additional cross motion of Reed Smith LLP for leave to amend the second amended answer of defendant Genex Cooperative, Inc. to assert a cross claim.
It is hereby ordered that the order so appealed from be and the same hereby is unanimously affirmed with costs.
Memorandum: Plaintiff commenced this action to recover damages for injuries he sustained when a storage tank owned by defendant-third-party plaintiff, Genex Cooperative, Inc. (Genex), ruptured. At the time of the accident, plaintiff was delivering liquid nitrogen to Genex on behalf of his employer, third-party defendant, Praxair, Inc. (Praxair). We determined on a prior appeal that Supreme Court properly granted the motion of Genex for summary judgment on its cause of action seeking contractual indemnification from Praxair (Ottaviano v Genex Coop. [appeal No. 2], 305 AD2d 1010, 1011 [2003], lv dismissed 100 NY2d 615 [2003]). The excess liability insurance carrier for Praxair, Allianz Insurance Company (Allianz), thereafter retained Reed Smith LLP (Reed Smith) to represent Genex in the main action. Genex, however, was represented by Ford Marrin Esposito Witmeyer & Gleser LLP (Ford Marrin) in the main action.
Contrary to the contention of Allianz, the appellant herein, the court properly denied that part of the cross motion of Reed Smith seeking an order substituting Reed Smith for Ford Marrin as counsel for Genex. That cross motion, ostensibly made on behalf of Genex, was in fact opposed by Genex. As a general rule, a liability insurer has a right to control the defense of underlying litigation against its insured based on the right of the insurer to protect its financial interests (see M & M Elec. v Commercial Union Ins. Co., 241 AD2d 58, 61-62 [1998], lv denied 92 NY2d 815 [1998]; Parker v Agricultural Ins. Co., 109 Misc 2d 678, 681 [1981])....
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