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Corva v. United Services Automobile Association

Supreme Court of New York, Appellate Division, First Department
108 A.D. 2d 631, 485 N.Y.S.2d 264 (1985)

Written by Craig Conway, LLM

Facts

Corva (plaintiff) was a passenger in a vehicle when it was involved in an accident with a vehicle owned by Donald Sabia. Corva hired the law firm of Mangiatordi & Corpina (M&C) to represent her. Sabia was insured by United Services Automobile Association (USAA) (defendant) which employed Dahle Lassonde & Company, Inc. (Dahle) and attorney Jack Hall to represent it in settlement negotiations. The parties ultimately reached a settlement for $15,000, in part because Dahle and Hall represented to M&C that the amount was the limit of Sabia’s coverage. Corva brought suit against USAA, Dahle, and Hall alleging that they misrepresented Sabia’s coverage limit to M&C. USAA, Dahle, and Hall each filed a cross-complaint alleging M&C violated its duty to Corva by not independently verifying Sabia’s policy limits. The trial court dismissed each of the cross-complaints and USAA appealed.

Rule of Law

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Issue

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Holding and Reasoning (Memorandum Decision)

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A "yes" or "no" answer to the question framed in the issue section;
A summary of the majority or plurality opinion, using the CREAC method; and
The procedural disposition (e.g., reversed and remanded, affirmed, etc.).

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