Weber Gallagher Simpson Stapleton Fires & Newby LLP

March 27, 2009 : Richard K. Tavani Wins Coverage Dispute Before New York Comp Board

A New York judge dismissed an employer's claim against the Maryland Injured Workers Insurance Fund where the workers' compensation policy at issue did not cover the employer in New York State.

The IWIF was the workers' compensation carrier for Atlantic Fine Arts, a Maryland company that was insured with the IWIF from 2002 until 2006. In 2006, the IWIF cancelled the policy when it discovered that the Atlantic had no Maryland employees.

In a proceeding before the State of New York Workers' Compensation Board, counsel for Atlantic Fine Arts maintained that the IWIF policy was unclear whether it precluded coverage in New York and that the policy was not properly cancelled.

The IWIF, represented by partner Richard K. Tavani, presented the testimony of the insurer's legal director, who testified that the policy only provided workers compensation coverage in Maryland and the policy was properly cancelled pursuant to Maryland law.

On March 5, 2009, Judge Scott Avidon determined that the policy did not cover the employer in New York and discharged IWIF from the action.