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Piraeus Jewelry, Inc. v. Interested Underwriters at Lloyd's

Appellate Division of the Supreme Court of New York, First Department
Jan 15, 1998
246 A.D.2d 386 (N.Y. App. Div. 1998)

Opinion

January 15, 1998


Defendant insurer's motion for summary judgment was properly denied since it failed to demonstrate that plaintiff breached the warranty provision of the insurance contract as a matter of law. The warranty provision required, as a condition precedent to liability for theft, that all showcases and safes containing stock "be locked and keys removed therefrom, other than during the process of items being removed by a responsible authorized person." Plaintiff jewelry store filed two separate claims with defendant for alleged robberies of its inventory on September 23, 1994 and December 26, 1994. Based on the deposition testimony of plaintiffs principal, Giladi, that he kept the two safes in his store unlocked during the day, defendant disclaimed coverage. Subsequently, Giladi submitted an affidavit stating that he had misunderstood the question asked at the deposition, and that the safes were generally locked with a key, although the combination lock was not reset. Giladi further stated that at the time of each theft, he or his employees were removing or replacing goods from one of the safes.

The IAS Court properly determined that triable issues of fact existed as to whether plaintiff's professed practice of locking the safes only with a key complied with the warranty, whether goods were in the process of being removed or replaced during the robberies and whether it was reasonable for both safes to be open during such time ( cf., Fabrikant Sons v. Overton Co. Customs Brokers, 209 A.D.2d 206, 207). Since credibility issues are properly left for trial of the action, Giladi's affidavit was sufficient to create triable issues despite defendant's assertion that it is inconsistent with his prior deposition testimony ( see, Butler v. Helmsley-Spear, Inc., 198 A.D.2d 131, 132).

Although it would not alter the result, we agree with defendant that the court should have considered the evidence offered in its reply papers. Defendant's submissions offered no new arguments, but were relevant to refute the claims raised in Giladi's affidavit ( cf., Ritt v. Lenox Hill Hosp., 182 A.D.2d 560, 562).

Concur — Ellerin, J.P., Wallach, Mazzarelli, Andrias and Colabella, JJ.


Summaries of

Piraeus Jewelry, Inc. v. Interested Underwriters at Lloyd's

Appellate Division of the Supreme Court of New York, First Department
Jan 15, 1998
246 A.D.2d 386 (N.Y. App. Div. 1998)
Case details for

Piraeus Jewelry, Inc. v. Interested Underwriters at Lloyd's

Case Details

Full title:PIRAEUS JEWELRY, INC., Respondent, v. INTERESTED UNDERWRITERS AT LLOYD'S…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Jan 15, 1998

Citations

246 A.D.2d 386 (N.Y. App. Div. 1998)
667 N.Y.S.2d 721

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