In Kambousi Rest., Inc. v. Burlington Ins. Co. , Burlington Insurance Company refused to defend and indemnify its insured, Kambousi Restaurant -- doing business as Royal Coach Diner -- on the grounds the insurer hadn't been given timely notice of the incident.
When the Bronx County Supreme Court granted Burlington's dismissal request, Kambousi appealed to the Appellate Division, First Department, which reversed.
Upon learning a woman had fallen in the parking lot, the establishment's manager inquired if the individual needed assistance and was supposedly told by that person's spouse not to "worry" since his wife was "clumsy" and had tripped over her own shoelaces.
The couple then left the area, leaving the manager to believe the restaurant wasn't going to be held responsible for the mishap.
That, according to the AD1, established a "good-faith belief of nonliability," which excused Kambousi's late notice.
We're thinking any other result would have been real awkward.
To download a copy of the Appellate Division's decision, please use this link: Kambousi Rest., Inc. v. Burlington Ins. Co.