Policy Language Not Defamatory – 470 4th Ave. Fee Owner V. Wesco Insurance

Defamation

470 4th Ave. Fee Owner, LLC et al v. Wesco Ins. Co., 2021 WL 6097478 (N.Y.Sup.), 2021 N.Y. Slip Op. 32780(U) (Trial Order) (Sup. Ct. NY Co. Dec. 23, 2021)

Plaintiffs alleged over $6.1M in damages for the insurance company's denial of coverage for a new residential apartment building in New York that suffered ongoing water infiltration. Plaintiffs sued not only the insurance company that issued the policy but also its parent company.

Plaintiffs alleged that the letter denying coverage was defamatory because it was sent to the Plaintiffs mortgage company and stated that, to the extent a false date of loss was intentionally provided in the first notice of loss, the claim is barred by the policy's fraud provision. The court held that such statements were not defamatory. The court reasoned: "defendant merely quoted the portions of the policy justifying its disclaimer and cited the facts upon which it relied thereupon. The truth of the terms of the policy