Stradford v. Zurich Insurance Co.

2002 WL 31027517 (S.D.N.Y. 2002)


Northern (D) issued an insurance policy on Stradford’s (P) dental office effective August 18, 1999. The premises were insured until August 19, 2000. P failed to pay the required insurance premiums, and D canceled the policy from October 10, 1999, to December 13, 1999. On December 6, 1999, P submitted a no claims letter certifying that he had no losses from October 19, 1999, to that date. P also resumed paying premiums and D reinstated the policy on or about December 14, 1999. P was notified of the reinstatement on or about January 9, 2000. Ten days later, P filed a claim on the policy and notified D that on January 17, 2000, he returned to his office and found water dripping from frozen pipes and extensive water damages. P submitted a claim under the policy for $151,154,74, and D made payments to him in that amount. After getting the payments, P submitted a revised claim for $1,385,456.70 for $168,000 in property damage and $1,209,456.70 in business interruption. D seriously investigated the losses and concluded that the damage had occurred during the period when the insurance had lapsed. P then sued D seeking $1,234,301.96. D counterclaimed for fraud and false pretenses, seeking the return of the monies paid and punitive damages. P moved to dismiss the fraud claims in that they were not pled with sufficient particularity under Rule 9(b).