Corva v. United Services Automobile Association
Supreme Court of New York, Appellate Division, First Department
485 N.Y.S.2d 264 (1985)
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
Holding and Reasoning (Memorandum Decision)
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