Judge OK’s Discovery on Insurer’s Prompt Action in Rescinding Policy
Olshan clients Joseph Boughton Jr. and his company Northstar Investment Group won a ruling allowing limited discovery into whether Continental Casualty Co. sought to rescind an insurance policy issued to an accounting firm. In New York, Continental would forfeit its right to rescind a policy if it didn't act promptly after learning of conduct that would justify rescission. Mr. Boughton has been granted permission to intervene in the lawsuit based upon his claims against the accounting firm separate and apart from the facts at issue that purported underlie the insurers’ rescission case.
Continental was denied summary judgment, so it now must produce its files to prove whether or not it sought to rescind the policy without any unreasonable delay. Insurance Partner Jeremy King served as co-counsel, representing Boughton and Northstar. Law360 published further details on the matter.