Teeter v. Allstate Ins. Co.
| Decision Date | 19 January 1961 |
| Citation | 9 N.Y.2d 655,212 N.Y.S.2d 71,173 N.E.2d 47 |
| Parties | , 173 N.E.2d 47 Raymond F. TEETER, Jr., Respondent, v. ALLSTATE INSURANCE COMPANY, Appellant. |
| Court | New York Court of Appeals Court of Appeals |
Appeal from Supreme Court, Appellate Division, Fourth Department, 9 A.D.2d 176, 192 N.Y.S.2d 610.
Insured brought action against insurer for declaratory judgment and for other relief. The question presented was whether an insurance company has the right to rescind ab initio, on account of the fraud of the insured, an automobile liability policy issued after the taking effect of the Motor Vehicle Financial Security Act, Vehicle and Traffic Law, §§ 93 to 93-k, which is now the Vehicle and Traffic Law, Consol.Laws, c. 71, § 310 et seq., and which is commonly known as the Compulsory Insurance Law.
The Supreme Court, Monroe County, Daniel J. O'Mara, J., 15 Misc.2d 915, 181 N.Y.S.2d 348, rendered judgment adverse to the insured, and the insured appealed.
The Appellate Division, Halpern, J., 9 A.D.2d 176, 192 N.Y.S.2d 610, reversed the judgment on the law and the facts and directed judgment in favor of the insured and held that the common-law right of rescission ab initio for fraud did not survive adoption of the Compulsory Insurance Law, and that the statutory method of terminating coverage on notice is the sole and exclusive method by which insurance coverage, for which a certificate of insurance has been issued under such law, can be terminated.
The insurer appealed to the Court of Appeals, and motion was made in the Court of Appeals on behalf of the insured for leave to submit a typewritten brief on the appeal.
The Court of Appeals, 8 N.Y.2d 1039, 206 N.Y.S.2d 818, granted the motion on behalf of the insured for leave to submit a typewritten brief on the appeal.
New York State Association of Plaintiffs' Trial Lawyers, New York City (Lubell & Lubell, New York City, of counsel), amicus curiae.
Aranow, Brodsky, Bohlinger, Einhorn & Dann, New York City (Alfred J. Bohlinger and Alfred Miller, New York City, Arthur C. Mertz, and Stephen I. Martin, of counsel), for National Assn. of Independent Insurers, amicus curiae.
Watters & Donovan, New York City (James B. Donovan, and Patrick J. Hughes, New York City, of counsel), for Association of Casualty & Surety Companies, amicus curiae.
Judgment affirmed, with costs.
All concur.
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