Justice Joseph Maltese
Broker RPM Insurance and insurer Travelers cross-moved for summary judgment. Cog-Net Building Corp. leased its commercial premises to Motorvations, who was required to obtain an insurance policy naming landlord as an additional insured. The premises was destroyed by fire resulting in property loss to Cog-Net in excess of the policy limit. Travelers denied the claim on the ground the intentional act of the insured negated any coverage. It was revealed Motorvations’ owner hired an arsonist to burn down the building. Cog-net sued to recover damages for breach of the insurance contract against Travelers, and for a negligence claim against RPM for failing to procure the proper insurance coverage. Travelers claimed it properly denied coverage as its insured admitted to fraudulently causing the fire, thus neither Motorvations, nor Cog-Net were entitled to payment under the policy’s loss payee provisions. The court found defendants demonstrated a prima facie entitlement to judgment finding neither Motorvations, nor Cog-Net ever requested that Cog-net be named an additional insured in the property damage endorsement. Even assuming RPM was negligent, the court noted it breached a duty to Motorvations, not Cog-Net. Thus, the complaint was dismissed.
