Policy Changes Must Be Agreed to by Both Parties

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Plaintiff Pilkington North America, Inc. (“Pilkington”), a Delaware manufacturer, moved to dismiss counterclaims brought by Defendant Mitsui Sumitomo Insurance Company of America (“MSI” or “MSI-US”), a New York insurance company. In Pilkington North America, Inc. v. Mitsui Sumitomo Insurance Company Of America and AON Risk Services Central, Inc., No. 18 Civ. 8152 (JFK), USDC, District Of New York (November 10, 2020) the USDC was called upon to resolve competing claims for declaratory relief.

ZALMA OPINION

Declaratory relief is an important tool used by insurers and insureds to resolve disputes over coverage. In this case both parties sought declaratory relief concerning the $15 million windstorm sub-limit. The USDC, with a Solomon-like decision found that it did not need to deal with two competing claims for declaratory relief when one was sufficient to allow the insurer and the insured to resolve the dispute.