Key Takeaway
New York appellate decision highlights critical issues with notice delivery in insurance cancellations and problematic attorney conduct during depositions in ATIC case.
Proper notice delivery remains one of the most contentious issues in insurance law, particularly when insurers deny receiving critical communications like cancellation notices. The complexities become even more pronounced when dealing with power of attorney arrangements and disputed mailing procedures. A recent New York appellate decision involving Arizona Premium Finance Company and American Transit Insurance Company illustrates these challenges while also highlighting concerning attorney conduct during depositions.
The case underscores the fundamental principle that insurance communications must be properly delivered to be effective. When disputes arise over whether notices were received, the burden often falls on the sender to prove delivery occurred. This becomes particularly complex when mailing procedures are called into question, as was the case here with incorrectly addressed correspondence.
Jason Tenenbaum’s Analysis:
Arizona Premium Fin. Co., Inc. v American Tr. Ins. Co., 2017 NY Slip Op 09263 (!st Dept, 2017)
I spent a few hours earlier this year reading the case file on this one. For starters, ATIC’s attorney at the deposition of the ATIC defendants violated the new rules in spirit and substance. I would have flipped out if I were Arizona’s attorney.
While an attorney at a deposition should not be a potted plant, they should not be actively interfering with the questioning. Substantively, the case involved claims of notices of cancellation that Arizona through the POA it possessed and invoked not being received by ATIC. Arizona was granted summary judgment on less than half the claims (it was clearly received). On the remainder, the mailroom gentleman ad his deposition admitted at his deposition that he would received incorrectly addressed envelopes (that was the issue of fact) requiring a jury trial on whether ATIC received the cancellations. Just amazing.
As a plaintiff, when ATIC denies receipt, you might want to read Louis Campbell’s deposition in this case.
Key Takeaway
This case demonstrates two critical points for insurance practitioners: proper deposition conduct is essential, and certified mail procedures may not guarantee successful notice delivery if addressing issues exist. The mailroom employee’s admission about receiving incorrectly addressed mail created a genuine issue of material fact, preventing summary judgment on those claims.
