James Morgan v. Greater New York Taxpayers Mutual Insurance Association

Summary

The New York Court of Appeals held that the assault exclusion in an owners, landlords and tenants public liability policy does not preclude coverage for an assured’s liability when the assault is committed by another assured (a partner) who did not act on the assured’s behalf. The court reasoned that the exclusion is intended to bar coverage only for the assailant’s own liability, not to strip coverage from other assureds under the same policy. Accordingly, the insurer must indemnify Murray Cronin for the judgment against him. Justice Dye dissented, arguing that the plain language of the policy excludes coverage for any partner acting within the scope of duties.