Liberty Insurance Corporation v. New York Marine And General Insurance Company et al

Filing 44

MEMO ENDORSEMENT on re: 43 Letter Response in Opposition to Motion addressed to Judge Denise L. Cote from Florence Langer dated 9/15/22 denying 42 Letter Motion for Local Rule 37.2 Conference. ENDORSEMENT: Permission for Hudson Excess Insurance Company to move to quash the subpoena is denied. (Signed by Judge Denise L. Cote on 9/19/2022) (vfr)

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Case Case1:22-cv-01081-DLC 1:22-cv-01081-DLC Document Document44 43 Filed Filed09/19/22 09/15/22 Page Page11of of10 3 JAFFE & ASHER ATTORNEYS AT LAW 600 PLEASE RESPOND TO WHITE PLAINS OFFICE THIRD AVENUE I 00 I 6- I 90 I 2 I 2-68 7-3000 FREE 888-625-9895 ESTABLISHED NEW YORK, NY TOLL LLP I 974 445 HAM ILTON AVENUE, SUITE 405 I 060 I TEL 2 I 2-68 7-3000 FAX 9 I 4-437-8076 WHITE PLAINS, NY WWW . JAFFEANDASHER . COM September 15, 2022 VIAECF Hon. Denise L. Cote, U.S.D.J. Daniel Patrick Moynihan United States Courthouse 500 Pearl Street New York, NY 10007-1312 Re: Liberty Insurance Corporation v. New York Marine and General Insurance Company, American Empire Surplus Lines Insurance Company, and Hudson Excess Insurance Company 1:22-cv-01081-DLC Civil Action No. Dear Judge Cote: Our firm represents plaintiff Liberty Insurance Corporation ("Liberty") in the referenced matter. This letter is submitted pursuant to paragraph 2. C. of Your Honor's Individual Practices in Civil Cases, in opposition to the letter motion filed on September 13, 2022, by defendant Hudson Excess Insurance Company ("Hudson"), seeking permission to move to quash the subpoena that Liberty served on Hudson's insured, Skittles Service Corp. ("Skittles"). In this action, Liberty seeks recovery of co-insurance contribution from defendants for a common insured, 45 John NY LLC ("45 John"), for an underlying tort action entitled Juarez v. Primework Construction Corp .. Avacon Management LLC and 45 John NY LLC, Index Number 160728/2017, pending in New York Supreme Court, New York County (the "Underlying Action"). A key determinative issue as to whether Hudson owes coverage to 45 John is whether Hudson's Named Insured, Skittles, "agreed in writing in a contract or agreement" to include 45 John, as a additional insured. Attached, as Exhibit "A", is a copy of the written agreement that we believe satisfies this requirement. We attempted to authenticate this document via Notice to Admit, to no avail. We even offered to withdraw the Skittles subpoena if Hudson would stipulate to the authenticity of this document, that it was signed by A vacon and Skittles on the dates indicated, and that it applies to the project at issue. Hudson refused; as such, we need to move forward with discovery on this issue. We specifically issued the subpoena to address this issue. This deposition is not duplicative of any discovery in the Underlying Action. The individual deposed, Isaias Barrera Perez ("Barrera"), was a foreman and he was not involved in the contracts related to the Underlying Action. His testimony related to the tort issues - the CALIFORNIA FLORIDA GEORGIA NEW JERSEY TEXAS Case Case1:22-cv-01081-DLC 1:22-cv-01081-DLC Document Document44 43 Filed Filed09/19/22 09/15/22 Page Page22of of10 3 Hon. Denise L. Cote, U.S.D.J . September 15, 2022 Page2 cause of the alleged accident. Barrera did not testify on any subject related to the key coverage issues herein. Indeed, Barrera specifically testified that he had no knowledge of the written contracts related to the job. In contrast, in this action, we seek a deposition to address insurance issues, specifically the contracts related to the job, including the exhibit annexed hereto. As such, we served the subpoena on a principal of Skittles, Araceli Rivero. A copy of the Affidavit of Service is attached hereto as Exhibit "B". Hudson's argument that Liberty should not be allowed to depose a different Skittles witness to testify about the contract documents because it could elicit inconsistent testimony is completely frivolous. First, Barrera could not testify about the contract because he lacked knowledge. Second, there is no rule of law preventing discovery because it may elicit inconsistent testimony. The pending summary judgment motion in the Underlying Action should not preclude or delay discovery herein. We have a discovery deadline of October 28, 2022. The motion in State Court does not stay discovery herein. Hudson's assertion that Skittles was dissolved in 2020 is also not a legitimate reason to quash the Skittles subpoena. Even if Skittles was dissolved as a corporation in 2020, it still must respond to a subpoena concerning pre-dissolution activity. McCready v. at'l Credit Sys., Inc., No. 07 CIV. 7705 DAB/JCF, 2010 WL 815079 (S.D.N.Y. Mar. 9, 2010). Finally, Hudson's application for permission to move to quash and/or any motion to quash the Skittles subpoena should be denied because it is untimely. The subpoena was returnable September 12, 2022. Pursuant to Fed. R. Civ. P. 45(d)(3), in order to be timely, a motion to quash a subpoena generally must be filed before the return date of the subpoena. In re Rule 45 Subpoena Issued To JP Morgan Chase Bank. N.A., 319 F.R.D. 132 (S.D.N.Y. 2016). For the above reasons and law, Liberty respectfully submits that Hudson's application for permission to move to quash the Skittles subpoena should be denied. Moreover, Skittles did not appear on the date noticed in the Skittles subpoena. We received an email from counsel purporting to represent Skittles in connection with the subpoena, Jonathan Banks, Esq. Mr. Banks advised us that he was unavailable to go forward with Skittles' deposition on the date in the subpoena and would get back to us with an adjourned date. He did not. Liberty respectfully requests that this Court direct Skittles to appear for a deposition in compliance with the subpoena. Permission for Hudson Excess Insurance Company to move to quash the subpoena is denied. 9/19/22 Respectfully submitted, JAFFE & ASHER, LLP By: ~ Cl - ; ) , ~ Florence Langer, Esq~ Case Case1:22-cv-01081-DLC 1:22-cv-01081-DLC Document Document44 43 Filed Filed09/19/22 09/15/22 Page Page33of of10 3 Hon. Denise L. Cote, U.S.D.J. September 15, 2022 Page 3 FL:fl cc: William F. Stewart, Esq. (via ECF w/ exh.) Nancy Zangrilli (via ECF w/ exh.) Daniel F. McFaul, Jr., Esq. (via ECF w/ exh.) Michael Panayotou, Esq. (via ECF w/ exh.) Jonathan Banks, Esq. (via email w/ exh.) Case Case 1:22-cv-01081-DLC 1:22-cv-01081-DLC Document Document 43-1 44 Filed Filed09/19/22 09/15/22 Page Page4 1ofof105 Exhibit A Case Case 1:22-cv-01081-DLC 1:22-cv-01081-DLC Document Document 43-1 44 Filed Filed09/19/22 09/15/22 Page Page5 2ofof105 SUBCONTRACT AGREEMENT RIDER (CONTRACTOR/SUBCONTRACTOR) Indemnity. in consideration or the Controcf Aqreenient. 0'1d to tl:e fullest exterd perrnitted by law. thc-- Suhcontrocicr shall defend ana sroll •PdE'mnlfy and holo harrnress. at Subcontrocto,·s sc 1e exoeri~e. 1re CoPtroclo,. a,; enti•;es !he Contmc ror =s requirec1 ,nciern.riify and hold hormless. ·he Dwncr of H,e property. O'"lCJ tf1e• officer,;, d:reclors. oqenls. employees ,;uccessors and assigns of each ot then~ !ron, ond ogoinst oi! :1ob 1idy or cfc.1irPE:d iiobilily for bO(j::y :niuiy or deo~h to on·1 r,erson{s). and for any ar:d 01: oroperly domage or economic damage. including si! attorney fees, disbursements ord re!o!ec cosls. arising out or or resulting from !he Work covered by trfr; Contract Agreernenl to the extent such Work was perforrneo by rn contracted tt'lrouqn rt,e Subcontrccicr or by O"yorc for w11ose ads the Subcorwactcr may be he:d !iab'e. e;.ccfuding oniy riobr:ity created by the sole orni exclusive negEgenco of the Indemnified Parties. This indemni!y agreement sl1aH sc1rvive :he ccmo1ction of fhe Wort specified in !he Ccntmc:t Agreement. 2. Insurance. Tbe St ,bcontractcr s•10:i orocure O!:d s~all niolnfo•n until fino: 1cceotonce of the Work. such iP!>ururice as wilt oro!ed the Contractor, a!I entities ·ne Contracicr is requ:red :ndemni!y ond ho 1d harmls·ss. ihe Owner, and their .)i/icers. cfrectors. ager1Js cna ernployees. for clairns orisir'.g out of or resulting from :.lubcontract01 's Work un<jei P·us Con!rccl Aqreernert. whether oerformed by the Subcontractor. or by anyone dlfec:ly or indirectly emp!oyed by Subconlmctor. or by anyone for whose ads Subcontractor moy be liable. Such ins1.;ror.ce st,o:i be provided by on 1nsutorce corr'er roted "A-'' or betle• hy A.M. Best and lawruiiv nutr·orized to do busir:ess ;,. the jurisdiction where the Work. is being performed. :he S1-.,bcon•roc7or's insvor:cB .,f,u!l r:c 1ude conh.--v:'uo, Lab:F,y coverage ano additional insl.;!ed cove~0G!:· for rrA berrefit of ~he Con~ractor.. Own(:~r one anvone elc;E• the Own1;,·iswq1.;ired !O name (o::.s.e! fodhin !he sct,..adi;lt::H:>f~k>w}, ond sho'l spedficoliy inc:1.;dc- coverage for co'"l,pietec operot:ons. :r,e nsuro~,ce reou:red to be ccwie<J oy !he Subcontrac1or or,a ony S,;t;·•St,o Contractors shal! be PRIMARY ,\ND N0t-:--CON1RH3UTO!?Y With remect to eoci" ~ype of insurance ~oecihxi hc~cLndcr, the Contractor",; onrl Ownpr'c. '.rsc;rr,r:c~f:\ ~,10,=t be e.xcess tcJ Sc:t)t:J)r1~rocf(}r·~ fns.~1~(J0c,e~ -rr't: Scit)c;on:ractor ...,...,c,rrc1rt:,: t~1cJt tt~c~ covf:rc1gE~ orovj(:.jf!Cl t ,r-!rlt~r the~ corr'rnerool generoi i1ob,i,ty no:,cy 5hoH be wrntcm OP an "occurrenc(~ · oasis w,!h coverage as brcocJ o; tne p·~'Surance s~"crvice Offce Jnc · <; :o·n·, and :i--ono ociic y orovisions snal; re~tnct r1:::dLce. hn"'\it or o~herv,,;-se ir,-1p,:lir con hoc t1..,oi 'iobi 1dy coverage er •1·,e Conrroctor's. Owner,; (o' 01hers os required rJr'd as /isreo below) srotus a::. odrn:iono, :nsured. HUD-000022 Case Case 1:22-cv-01081-DLC 1:22-cv-01081-DLC Document Document 43-1 44 Filed Filed09/19/22 09/15/22 Page Page6 3ofof105 r; :~ 1css {Si t10y\ r)''(}r :t..: :: .JP. rn1::·r'"Ce'""Y'~0~ r;~ .. he vVor•: ~"P'.d ~~,:·t:: occeo,nnct: of :ht: V\l,.)rr;, Sut:::::ont•1.JC'er ',i,c•! provide Cor,trocror '•.(); tt···c)r• f\t(J ',n\:) 1 w!tf' c:ertific,o~efs) of ~r··,sur<Jnc:c c-v~dcnc· 1nr~ :!',r-; re(.lt;1r(;•j ~nsc;ror·:(~f:.C ·, 0vf-~rc1t1e w:!'"' ~re• firrit~: ~~-cJtea L~ehJ\V tH --..::~~ewt1ere in 7ne S\;!Jf:Or}t!(]t.:f dC')C\Jr!""'.cr~ts. The Sut)CO"iroc!or s,~oh rnovide Cor,:racior :hrty (:~OJ oovs written notice cf o -i~Qf'O"' .~, ~-a•· ·"Pi'at,,~" .~ ~_.\.,J,.-,-,VC''"'"'e <'i' :nSG'")<,c•:.• •·\(\:;,;e,,; sr,··J): !,___, t;~-: •<.J; • ,__.,,~_. .., ,. ,..-. ' ' '"dO:.:,_,i ~J ' ' ~\, .. , i;ro~e that the insurer wi;t prov:de Corilroco· o,,ny !.:<O} days or:or wntte'l 11ot1ci::: {_, 1_. I . )II;_~~.- : -, '..¥• ·' {f' -~·t •I' '._, "' •- ... ..,.,,_, _,, ,~ ' I. of o chur:9e or com::c~::n~:on in ccveroge. ?.4. Uniess oH,erw,se st,pu:ated in the Contract A9reemen+. tre Subcomractor s!ioii -na,r1tcJ~r·i n(; fess :r. ,or\ +he ;,rnt~(, <iOer:i~ea fer f.?Ot,;:~: ()f tflE? f'oHc)wiP~J inst,rance coverages: q) Cornrr:e.rc:c' Gt:'"!gJ_ojJjqbiiity v:;:ng ori ;r1d1..rsfry s~tJr~<jo•d unrrx1dihmi coverage rorm inciud1ng comrac:uol liability witn minimum limits of S ! JJOD.COO ec:d\ ccc,.J1ence. $2.GC0.000 aggrego:e cir:o $2.lXX>.OOO Products corno!eted operations oggrego~P wifh either per project or oer ,ocotior endorsemen~ for oropeny oornor.;,?. ond bodily injury: qJ Corl'}PJ~l1E:!f'St1/t'; 6-v.tqrnobi!e liqt?Jlity :n'>uronce witr~ min.mum iirrn:s of 3 i .000.000 cofr'b••~ed ·;ingic l:m:t each occident. inc!uding booiiy injt,ry ard orooerty dafl'!age :iab:':ty; cJ Y,.,g_r<.1:=rs:. Coi:r:p~_i:15qr:00 and disooi!dy benefr: fn<:uronce including Occupational Disease in lhe minimum amounh o<. required by the jurisdiclion where the Work is perform.ed. dJ Umbrella '..;o0: 1i1y ir,s.;roncc wfth o l:rni: of i, .cno.oco oor occur:ence anci generoi OfJQrega;e of $ l .000,0CO. Scaf!oiding. demofilion. ono excavolion confrocto,s. reqi;lre Ln:b~t:i!a UabHity insurance wiH, a i,rr1:: o' 52.000.000 oer Occiyrf:ncc and geP(:rol oggregote o" $2.CX:X>.OOO. 7.5.. fhe Si.il)cs()nifocror ond h,s instlfer ~r,aH v1a\,e oa r~~Jhfs of sub~·ogorlon cgo:nst tne Controctor. Owner or,d any oth_er 1nciH,-,1nified r..~c~iy. 0.•.:::e;:: os resnec-, Worl.:e•·:• Comoensofon in'.>urancc. ; n :f S.)t)Cr)!·. ·,~-fCJ(:fof en~:JcfJf?'S c St)tJ . Sut:')cor_!rac!o~ i., is !he cff!rrr.~a•ive d·uty oi thl:: Subcrx1!roctor in -'~nsure !rot ony Sub Subcon~roc•or complies with the ir1svrance ar·(J ;rrt:!~·;-rY'\•·1ffr(:c1ftor1 rt~QL'ren1t::r\~~ of tr1i5, Cl.;r~~r-cJc~ Agrcerne•·:: HUD-000023 Case Case 1:22-cv-01081-DLC 1:22-cv-01081-DLC Document Document 43-1 44 Filed Filed09/19/22 09/15/22 Page Page7 4ofof105 HUD-000024 I Case Case 1:22-cv-01081-DLC 1:22-cv-01081-DLC Document Document 43-1 44 Filed Filed09/19/22 09/15/22 Page Page8 5ofof105 ACORD® CERTIFICATE OF LIABILITY INSURANCE DATE (MINOO/YYYY) 05/24/2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. • ">ORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER 1.,UNIRv I NAME: JEM GENERAL AGENCY. INC. 14204 BAYSIDE AVE STE 10UA KATHERINE HUNG (718) 283-4068 ~hs: !NFO@JEMINSURE.COM fl/gN,io Extl: FLUSHING NY 11354-2331 INSURED (718) 747-8484 INSURER(S) AFFORDING COVERAGE INSURER A: NAIC# HUDSON EXCESS INSURANCE COMPANY 14484 ACE PROPERTY & CASUALTY INSURANCE CO NEW YORK STATE INSURANCE FUND INSURERO: STANDARD SECURITY LIFE INSURANCE INSURER B : SKITTLES SERVICES CORP 20699 INSURERC: 377 SHARON AVE STATEN ISLAND NY 10301-1414 COVERAGES 1r..c2 Nol: CERTIFICATE NUMBER: 69078 INSURERE: INSURERF: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR A X - TYPE OF INSURANCE I CLAIMS-MADE IZI POLICY NUMBER INSD WVD COMMERCIAL GENERAL LIABILITY IMWODIYYYYl ,~.1lb't,)y'Wv1 1./t\MJ\C>t: IOr<Cl'llt:.IJ OCCUR PREMISES /Ea occurrence\ y y MED EXP (Any ono person) HXMP100996 05/08/2017 05/08/2018 PERSONAL & ADV INJURY GEN'L AGGREGATE LIMIT APPLIES PER POLICY OLoc JECT OTHER: AUTOMOBILE LIABILITY ,,,--ANY AUTO - ALLOWNED AUTOS rHIRED AUTOS B X EXCESSLIAB OED C 1,000,000 50,000 $ 5,000 s 1,000,000 GENERAL AGGREGATE $ 2,000,000 PRODUCTS • COMP/OP AGG $ 2,000,000 ~MBINEDt~INGLE LIMIT a accident BODILY INJURY (Per person} SCHEDULED AUTOS NON-OWNED AUTOS - UMBRELLA LIAB $ s $ - - LIMITS EACH OCCURRENCE $ $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE $ /Per accident) $ ix!OCCUR CLAIMS.MADE y I I RETENTION s l/1/0RKERS COMPENSATION ANO EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? (Mandatory in NH) ~ · describe under SCRIP110N OF OPERATIONS below y UMBNYD390945512 EACH OCCURRENCE 05/08/2017 05/08/2018 AGGREGATE I ~f~TUTE IX! ~~H- m YIN N/A D DISABILITY BENEFITS 23119662 R72493-000 11106/2016 11/06/2017 E L. EACH ACCIDENT s 1,000,000 $ 1,000,000 $ s 1,000,000 E,L DISEASE • EA EMPLOYEE $ 1,000,000 E.L. DISEASE· POLICY LIMIT 1,000,000 $ 11/06/2016 11/06/2017 STATUTORY DESCRIPTION OF OPERATIONS I LOCATIONS/ VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached If more space is required) Additional insured: Avacon Management LLC DBAAvacon Builders 345 Roule 17 South Upper Saddle River, NJ 07458; 45 John NY LLC 150 Broadway, Suite 900 New York, NY 10038 CERTIFICATE HOLDER CANCELLATION tl..vacon Management LLC OBA Avacon Builders 345 Route 17 South JppPr Saddle River, NJ 07458 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE I ACORD 25 (2014/01) © 1988-2014 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD HUD-000025 Case Case 1:22-cv-01081-DLC 1:22-cv-01081-DLC Document Document 43-2 44 Filed Filed09/19/22 09/15/22 Page Page9 1ofof102 Exhibit B Case Case 1:22-cv-01081-DLC 1:22-cv-01081-DLC Document Document 44 43-2Filed Filed 09/19/22 09/15/22Page Page 102ofof10 2 14.1 Index Number: 1:22-CV-0 1081(DLC) UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK Court Date: 09/12/2022 LIBERTY INSURANCE CORPORATION Plaintiff vs NEW YORK MARINE AND GENERAL INSURANCE COMPANY ET AL Defendant STATE OF NEW YORK , COUNTY OF RICHMOND , SS.: AFFIDAVIT OF SERVICE Joseph P.F. Donovan . be ing sworn deposes and states that, th e Deponent is not a party herein, is over the age of 18 years and resides in the State of New York. That on 9/1/2022. at 6:29 PM at 377 SHARON AVENUE APT 2F, STATEN ISLAND, NY 1030·1. Deponent served the within Subpoena to Testify at a Deposition in a Civil Action . On: SKITTLES SERVICES CORP . ~ therein named, ( hereinafter referred to as "subject"). By delivering to and leaving with Araceli Rivero said individual to be President who specificall~, stated he/she was authorized to accept service on behalf of the Corporation/Government Agency/Entity. A description of Araceli Rivero is as follows : Sex: Female Color of skin : Brown Color of hair: Gray Age: 55 Height: 5ft0in-5ft3in Weight: 100-130 Lbs . Other : glasses Sworn to before me on September 2, 2022 ~z: 2 - --faraoonovan Notary Public - State of New York • ~: .~ ;o • [!f... -~ No. 01006210234 Qualified in Richmond County My Commission Expires 08-10-2025 Client's File No.: 2230602 ( ~I~Process Server, Please Sign Joseph P.F. Donovan Lie# 1292936 Job#: 2228871 & CO.IIP.<.v}·. J,vc : SERl'/Ct' JJ/STR/Bl 'TEV Bl' , ., TE'R Coc,n J i ,'l>l('HL SCRl'J('H LLC 6115/ JERJClln TUISPlliC. S /'I TE JI/{). SI/J.HF.T .Y J' /1 79 / LICE.VS£# / J:-1 771 Au-:.,.,,.,nCR PUULC

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