Joseph Cardinal, Doing Business Under the Name of Cardinal Engineering Company, Appellant and Respondent v. State…

Summary

The New York Court of Appeals held that the State Insurance Fund breached its insurance contract by refusing to defend Cardinal Engineering Company and is liable for the settlement amount and attorney's fees. The Court reversed the Court of Claims judgment, remanded for entry of judgment in favor of Cardinal, and noted that the Fund's $25,000 limitation was invalid. The decision was contested by two dissenting opinions (Dye and Fuld) that argued the settlement was not covered.