Key Takeaway
NY court rules staged accident schemes void coverage regardless of innocent third party status - challenges Langan doctrine on intentional acts
Nationwide Gen. Ins. Co. v Pontoon, 2014 NY Slip Op 09001 (2d Dept. 2014)
“The referee incorrectly concluded that GEICO was required to submit evidence that Pontoon was involved in staging the collision in order to support a disclaimer of coverage. Contrary to the referee’s conclusion, if GEICO can prove that the collision was staged by Robinson, its insured, it would not be obligated to provide coverage under the policy regardless of whether Pontoon was an innocent third party (see Matter of Travelers Indem. Co. v Richards-Campbell, 73 AD3d 1076, 1077; Matter of Government Empls. Ins. Co. v Shaulskaya, 302 AD2d 522, 523; Morris v Allstate Ins. Co., 261 AD2d 457, 458; see also Matter of Liberty Mut. Ins. Co. v Goddard, 29 AD3d 698, 699; State Farm Mut. Auto Ins. Co. v Laguerre, 305 AD2d 490, 491)”
Perhaps we can call this the staged accident exception to Langan. I think this is wrong since under Langan, an intentional act is looked at through the perspective of the Claimant. Here, Pontoon said he had nothing to do with the staged accident. Under Langan, it would appear that Claimant would be entitled to a framed issue hearing to protest his innocence. Yet, the Court here is saying that where there is evidence of a staged accident scheme, anyone seeking coverage is barred (regardless of whether they were aware of it). All I can say is wow.
Related Articles
- Understanding when proof is insufficient to establish intentional accidents
- How staged accident allegations are handled in New York insurance claims
- When material misrepresentations matter more than intent in insurance coverage
- Court verdict upholding intentional loss determination
- New York No-Fault Insurance Law
Legal Update (February 2026): Since this 2014 post, New York courts may have further refined the application of intentional loss exclusions in staged accident scenarios and the interplay between the “Langan standard” and innocent third-party claims. Practitioners should verify current case law developments regarding coverage obligations when staged accidents involve potentially innocent claimants, as appellate decisions in the intervening decade may have clarified or modified these coverage principles.
