Aetna Casualty and Surety Co. v. Murphy

Facts

George A. Murphy III (Plaintiff), a dentist, terminated a lease in a building insured by Aetna Casualty and Surety Co. (Aetna). In dismantling his office, Plaintiff caused damage to the building. Plaintiff personally possessed comprehensive liability insurance provided by Federal Insurance Company, Chubb Group of Insurance Companies (Defendant). Plaintiff’s contract with Defendant required him to give notice to the company of insured incidents “as soon as practicable,” and notice of any claims or suits brought against him “immediately.” Aetna suedPlaintiff for the building damages in 1983, but Plaintiff did not forward this information to Defendant until 1986. At this time, Plaintiff successfully impleaded Defendant as a third party defendant in his suit with Aetna. Defendant moved for summary judgment on the ground that it was not liable to provide coverage for Plaintiff because Plaintiff violated the notice provisions of his insurance contract by unreasonably delaying to inform Defendant of the insured incident. The trial court granted Defendant’s motion for summary judgment. Plaintiff appealed on the ground that despite his inexcusable and unreasonable delay in giving notice, he is still entitled to insurance coverage because Defendant failed to allege or show prejudice due to the late notice.