D.F. Realty LLC, Lawrence C. Foster, Individually, and Lawrence C. Foster and Carol J. Guiton, as Executors of the Estate of Joan F. Dorsey, Deceased, Plaintiffs,
Security Mutual Insurance Company, Haylor, Freyer Coon, Inc., as successor in interest by merger to The Falvo Insurance Agency as agent for Security Mutual Insurance Company, and Steve Falvo, Individually and as agent for Security Mutual Insurance Company, Defendants.
This case is not published in a printed volume and its disposition appears in a table in the reporter.
Counsel for Plaintiffs: McDonough Artz, P.C., By: Philip J. Artz, Esq., of Counsel
Counsel for Defendant Security Mutual Insurance Company: Williamson, Clune Stevens By: John H. Hanrahan, 3D, Esq., of Counsel
Counsel for Defendants Haylor, Freyer Coon, Inc., The Falvo Insurance Agency And Steve Falvo, Individually: Lustig Brown, LLP By: David J. Sleight, Esq., of
Counsel, Centerpointe Corporate Park
Ferris D. Lebous, J.
Plaintiffs commenced this action alleging four theories of liability including negligence, reformation, breach of contract, and unjust enrichment arising from defendants' alleged failure to change the named insured on an insurance policy. Defendants each seek an order granting summary judgment dismissing plaintiffs' complaint and their co-defendants' respective cross-claims.
The court heard oral argument on November 7, 2007. The parties were granted permission to file post-argument submissions within two weeks from said date.
On February 19, 1997, Joan F. Dorsey purchased residential rental property located at 3 Thorpe Street, Binghamton, New York (hereinafter sometimes the "Premises"). On that same date, Ms. Dorsey also secured a landlord's fire and liability insurance policy insuring said Premises with herself as the named insured for a three year term starting on February 19, 1997 and running through February 19, 2000 (hereinafter the "Policy").  Ms. Dorsey purchased said Policy from The Falvo Insurance Agency as agent for defendant Security Mutual Insurance Company. 
Sometime in November 1997, Joan F. Dorsey and her son Lawrence C. Foster formed D.F. Realty, LLC (hereinafter sometimes the "LLC"). The ownership of the LLC was divided between Joan F. Dorsey as the majority owner and Lawrence C. Foster as the minority owner.
On December 19, 1997, Joan F. Dorsey transferred 3 Thorpe Street to the LLC by way of warranty deed.
In late 1997 and early 1998, the LLC encountered insurance problems relating to the necessity for continuing to carry workers' compensation coverage. According to plaintiffs, there were numerous written and oral discussions between Joan F. Dorsey, her agent Steve Falvo, her attorney Phillip J. Artz, and workers' compensation officials through ...