On a cold February 2011 morning, Frank Gunther was performing his security duties for the FDNY at a Staten Island firehouse when he allegedly slipped and fell on a temporary walkway. Gunther sued the City of New York, who tendered its defense to Security Fence Systems, Inc. who was responsible for snow removal, and Security Fence’s insurer, XL Catlin. The policy identified the City as an additional insured — but only for a single designated location: 9 Metro Tech Center, Brooklyn, NY. XL Catlin denied the tender, because that was not the location where the accident took place.

The City settled the underlying action with Gunther for $750,000 and filed a declaratory judgment action, seeking reimbursement for this settlement (plus interest) from XL Catlin and Security Fence.  WCM Partner Michael Bono and Counsel Steven Kaye moved for pre-discovery summary judgment, arguing that the additional insured endorsement limited coverage to a single location and because the accident occurred elsewhere, XL Catlin properly disclaimed coverage.  The City argued it was entitled to coverage because the named location was the FDNY’s headquarters — a location where Security Fence did not even perform services. The Court agreed and awarded XL Catlin summary judgment.

Thanks to Steve Kaye for his contribution to this post and please write to Mike Bono for more information.