We begin this month’s column by noting that, with the state Senate’s confirmation of Governor Andrew Cuomo’s nomination of Appellate Division Justices Leslie Stein and Eugene Fahey to the court, the court is now back at full strength. This month we discuss cases applying the defamation privilege to pre-litigation statements and addressing the application of collateral estoppel in attorney disciplinary actions. We also discuss a case construing an “ensuing loss” clause in an insurance coverage dispute concerning damage resulting from broken water pipes. Stein and Fahey did not take part in any of the three decisions we discuss.
Collateral Estoppel
The court’s unanimous per curiam opinion in Matter of Jill A. Dunn arises out of an action brought by the Securities and Exchange Commission (SEC) against various defendants, including David Smith and his investment services firm McGinn, Smith & Co., for violation of federal securities laws. In that action the SEC obtained a temporary restraining order against Smith and others freezing their assets, including a trust Smith and his wife had allegedly created for the benefit of their children.
