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Public Service Mutual Insurance Co. v. Goldfarb

Court of Appeals of New York
425 N.E.2d 810 (1981)

Facts

Goldfarb (defendant) purchased professional liability coverage under a policy offered by Public Service Mutual Insurance Company (Public Service Mutual) (plaintiff) to members of the Dental Society of the State of New York. While covered under the policy, Goldfarb was accused of sexual abuse by a patient and convicted on criminal charges. The victim also pursued a civil suit, seeking compensatory and punitive damages. Public Service Mutual initiated a declaratory judgment action seeking a determination of its obligation to provide coverage for damages arising out of the civil lawsuit. The declaratory judgment action came under review by the state supreme court.

Rule of Law

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Issue

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Holding and Reasoning (Jasen, J.)

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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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