The New York Court of Appeals recently reaffirmed the "no-prejudice" rule within the primary liability context in Great Canal Realty Corp. v. Seneca Ins. Co. Inc.  Justice Catterson from the Appellate Division, First Department went out on a limb in the concurring opinion below, stating that an insurer company must demonstrate that it was prejudiced by an insured’s late notice of claim or occurrence before a disclaimer on that basis will be upheld (see First Department decision here and prior post on that decision).  Notably, Justice Catterson also wrote a decision about the no-prejudice rule before joining the First Department (see decision Download 510029155199814SCIV.pdf and prior post).

The Court of Appeals rejected the abandonment of the no-prejudice rule in the primary liability context, upholding its recent decision in Argo Corp. v. Greater New York Mut. Ins. Co.