Insurance agency battles town for $3.13 million interest

State Supreme Court is expected to issue a decision within 30 to 60 days

Insurance agency battles town for $3.13 million interest

Insurance News

By Allie Sanchez

A legal dispute between the New York town of Amherst and its insurer has been elevated to the state Supreme Court.

The subject of the dispute is the $3.13 million remainder of an indemnity paid as settlement when a contractor fell from a building owned by the town of Amherst.

According to a report by The Buffalo News, the town and its insurance provider Granite State Insurance jointly funded the $23.4 million settlement awarded to the contractor after he won a personal injury judgment against the town. The insurer fielded $10 million, while the town paid the rest.

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The two then jointly pursued an indemnity claim against the roofing contractor’s insurer, State Insurance Fund, which paid them $31 million. According to the provisions of the settlement, the town got more than $17 million, while the insurer received more than $10 million, leaving a $3.13 million remainder.

This amount then became the subject of a legal dispute between Amherst and Granite State. Successive court decisions have failed to settle the matter, calling for further arbitration and review and ultimately reaching the New York Supreme Court.

The Court is expected to issue a decision on the matter within one to two months. 

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