One Million Dollar Limit for Lead Paint Policy Applies per Year

November 1, 2003

LVT Number: 16911

Tenants sued landlord for lead paint injuries to four children. Landlord's two insurers settled the case with tenants, agreeing to pay $2.8 million. One insurer later sued the other, claiming that the second insurer refused to pay its share of the settlement. The second insurer claimed that its lead paint liability was limited to $1 million. The court ruled against second insurer. The $1 million limit should be interpreted as a one-year policy period. Since landlord had the policy for two years, the second insurer was responsible for up to $2 million.

Tenants sued landlord for lead paint injuries to four children. Landlord's two insurers settled the case with tenants, agreeing to pay $2.8 million. One insurer later sued the other, claiming that the second insurer refused to pay its share of the settlement. The second insurer claimed that its lead paint liability was limited to $1 million. The court ruled against second insurer. The $1 million limit should be interpreted as a one-year policy period. Since landlord had the policy for two years, the second insurer was responsible for up to $2 million.

National Union Fire Ins. Co. v. Farmington Casualty Co.: NYLJ, 10/22/03, p. 22, col. 1 (Sup. Ct. NY; Lehner, J)

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