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 policy by refusing to defend Cardinal and by imposing an unjustified $25,000 limitation, and therefore must reimburse Cardinal for the $87,000 settlement paid to the United States and the $14,000 attorney fees. The Court reversed the Court of Claims judgment, remanded for entry of judgment in favor of Cardinal, and affirmed the Appellate Division’s modification granting attorney fees. Two dissenting opinions argued that the settlement was not covered by the policy.