Peleus Insurance Company v. Atlantic State Development Corp.
- John Cronan
- 1:20-cv-02971
- U.S. District Court · Southern District of New York
- 1
In Peleus Insurance v. Atlantic State, Judge Cronan granted Peleus summary judgment, ruling no coverage duty existed and allowing it to withdraw its defense.
Peleus Insurance Company obtained judgment on its insurance-coverage obligations. Atlantic State Development Corp. was found not to have coverage for the New York case, and Peleus was allowed to stop defending it. The judgment also names Lauran Walk and Michael Winters as defendants, but it does not specify a separate effect on them.
What happened
Peleus Insurance Company sued Atlantic State Development Corp., Lauran Walk, and Michael Winters over insurance coverage. The court entered judgment for Peleus based on the reasons in its February 24, 2022 Opinion and Order.
The court found that the undisputed facts showed no reasonable possibility that the insurance policy covered the New York case. Atlantic did not establish any reason preventing Peleus from refusing coverage.
Judge John Cronan’s ruling granted summary judgment for Peleus. The court held that Peleus had no duty to defend or indemnify Atlantic in the New York case, allowed Peleus to withdraw its defense, and closed the case.
The detailed version
- Peleus Insurance Company v. Atlantic State Development Corp. · No. 1:20-cv-02971
- John Cronan
- Feb. 24, 2022
Background
Peleus Insurance Company brought this insurance-coverage case against Atlantic State Development Corp., Lauran Walk, and Michael Winters. The judgment refers to an insurance policy between Peleus and Atlantic and to a separate New York case in which Peleus had been providing a defense.
Ruling
The court granted summary judgment for Peleus. Summary judgment is a decision entered when the undisputed facts show that one party is entitled to judgment without a trial. The court stated that the undisputed facts demonstrated no reasonable possibility of coverage under the policy for the New York case.
The court also stated that Atlantic had raised no grounds barring Peleus from disclaiming coverage. It therefore held that Peleus had no duty to defend or indemnify Atlantic in the New York case. The court allowed Peleus to withdraw its defense in that case and ordered that this case be closed.
Read the full 1-page opinion on CourtListener, the free public archive maintained by the Free Law Project.