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March 16, 2021 | New York Law Journal

The Insurer's Right To Recoupment of Defense Costs

The question of defense cost recoupment may warrant clarification by the Court of Appeals. In the meantime, the Second Department has spoken as clearly as possible against such attempts at recoupment when it is not specifically provided for in the policy, but, rather, only in a reservation of rights. In this edition of his Insurance Law column, Jonathan A. Dachs discusses the Second Department decision, 'American Western Home Ins. Co. v. Gjonaj Realty & Management Co.'

1 minute read

March 16, 2021 | Insurance Coverage Law Center

The Insurer's Right To Recoup Defense Costs

The question of defense cost recoupment may warrant clarification by the Court of Appeals. In the meantime, the Second Department has spoken as clearly as possible against such attempts at recoupment when it is not specifically provided for in the policy, but, rather, only in a reservation of rights. In this edition of his Insurance Law column, Jonathan A. Dachs discusses the Second Department decision, 'American Western Home Ins. Co. v. Gjonaj Realty & Management Co.'

1 minute read

Am W. Home Ins. Co. v. Gjonaj Realty & Mgmt. Co.

Publication Date: 2021-01-13
Practice Area: Contractual Disputes | Insurance Litigation
Industry: Insurance
Court: Appellate Division, Second Department
Judge: Justice Colleen Duffy
Attorneys: For plaintiff: For Respondent: Patti F. Potash, Alexandra E. Rigney, and Jennifer F. Mindlin of counsel, Fleischner Potash, White Plains, NY.
for defendant: For Appellants Gjonaj Realty & Management Co. and 28-47 Webb Avenue Associates, LLC: Y. Albert Dauti of counsel, The Dauti Law Firm, P.C., New York, NY. For Appellant Viktor Gecaj: Jeffrey A. Berson of counsel, Berson & Budashewitz, New York, NY.
Case Number: 2018-03435

Given Reservation of Rights Insurer Not Barred From Refusing Continued Defense in Action