Justice Cynthia Kern


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Plaintiffs National Union Fire Insurance Co. of Pittsburgh, PA and Illinois National Insurance Company commenced an action to recover over $24 million they paid to defend and settle a lawsuit brought against the City of New York and three foster care agencies affiliated with The Roman Catholic Diocese of Brooklyn and others (“the agencies”). Plaintiffs subsequently brought the instant motion for partial summary jugdment seeking a declaration that the $24 million they paid to defend the City and defend and indemify the agencies in the underlying lawsuit must be allocated pro rata to the 22 annual periods of potential exposure between 1985 and 2007, the years in which the claimants alleged that they were abused. Plaintiffs further sought a declaration that, after the required pro rata allocation, the Diocese must satisfy a $250,000 self-insured retention (“SIR”) for each occurrence that resulted in bodily injury to each claimant during a particular policy period. The court granted plaintiffs’ motion, determining that plaintiffs are not required to prove that the abuse alleged in the underlying action actually occurred or that there were, in fact, multiple acts of abuse over many years.