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- Title
INSURER'S OBLIGATION IN ARBITRAL PROCEEDINGS -- ARCHITECTURAL AGREEMENT -- FEES -- NEW YORK.
- Abstract
This article focuses on the judicial decision made against the case "La Pierre v. Continental Casualty Co., 82 A.D. 2d 353," concerning insurer's obligation in arbitral proceedings. Considering the law, it is argued that where professional liability insurer undertook to defend suits and arbitration proceedings against insured architects, providing that insured did not have knowledge of such prior error, omission or act at the effective date of the policy, insurer was bound to defend architect in arbitration proceedings involving an alleged non-compliance with the terms of a construction contract that occurred prior to the date of the construction contract as long as there was no evidence of prior knowledge of the alleged failure or deficiency. The federal court of New York State, in reaching its decision, relied on the fact that the subsequent award unanimously in favor of the architect indicated that it could not have had prior knowledge of liability together with the principle that the duty to defend is frequently broader than the liability to pay.
- Subjects
NEW York (State); ACTION &; defense cases; LIABILITY insurance laws; CONFLICT of laws -- Obligations; ARCHITECTURAL partnership; CONTINENTAL Casualty Co.; INSURANCE companies; NONCOMPLIANCE
- Publication
Arbitration Journal, 1969, Vol 24, Issue 4, p252
- ISSN
0003-7893
- Publication type
Article