Mound Cotton’s clients were dismissed from a coverage claim involving the application of a “Shelter Deductible” provision. The plaintiff, ABCNY Inc., brought a claim for a fire loss at one of its properties, the Hotel Artel, and challenged the application of the “Shelter Deductible,” claiming that the Hotel was not a shelter within the meaning of the policy.

Mound Cotton moved to dismiss the plaintiff’s complaint arguing that the “Shelter Deductible” was an unambiguous provision, and the Hotel Artel was indeed operating as a shelter. The court agreed, as it granted the motion to dismiss. The court ruled that the term “shelter” within the meaning of the policy was unambiguous and found that the Hotel Artel “comfortably qualified” as a “shelter” during the policy period based on the allegations in the complaint and the agreement entered into between the Hotel and the city of New York.

The case is ABCNY, Inc. v. Axis Surplus Ins. Co., No. 23-CV-9094 (JMF), 2024 WL 3157080 (S.D.N.Y. June 25, 2024).

Partners Wayne R. Glaubinger and Guyon H. Knight represented Axis Surplus Insurance Company, Landmark American Insurance Company, and StarStone Specialty Insurance Company.

ABCNY MTD Decision and Order (6-25-24)


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