Court of Appeals of New York.
J. Herbert GRIMSEY et al., Respondents,
v.
LAWYERS TITLE INSURANCE CORPORATION, Defendant-Appellant and Third-Party
Plaintiff, Thomas P. Lynch, Third-Party Defendant. (And Another Title.)
Dec. 29, 1972.
Action was brought for breach of contract of title insurance. The Supreme
Court, Rockland County, entered judgment in favor of plaintiffs against title
insurance company, and the company appealed. The Supreme Court, Appellate
Division, Second Department, modified, affirmed and remanded, 38 A.D.2d 572, 328
N.Y.S.2d 474, and leave to appeal was granted. The Court of Appeals held that
award for amount of plaintiffs' counsel fees was proper insofar as it embraced
the cost of services rendered in defense of the claim of title interposed
against them, but was unauthorized to the extent that it included fees incurred
in prosecuting the instant action against the title insurance company and on
appeal in that action.
Order of Appellate Division modified and affirmed.
West Headnotes
Insurance 3375
217k3375 Most Cited Cases
(Formerly 217k675)
In action for breach of contract of title insurance in which plaintiffs
recovered to the extent of their interest, award for amount of plaintiffs'
counsel fees was proper insofar as it embraced the cost of services rendered in
defense of the claim of title interposed against them, but was unauthorized to
the extent that it included fees incurred in prosecuting the action against the
title insurance company and on appeal in that action.
***101 **250 *955 Samuel Kirschenbaum and Arthur Winoker, New York City, for
appellant.
Krashes, Leyden & Lessinger, Spring Valley, for respondents.
No appearance for third-party defendant.
MEMORANDUM.
The award for the amount of plaintiffs' counsel fees was proper insofar as it
embraced the cost of services rendered in defense of the claim of title
interposed against the plaintiffs but was unauthorized to the extent that it
included attorneys' fees incurred in prosecuting the action brought against the
title insurance company and now before us (Doyle v. Allstate Ins. Co., 1 N.Y.2d
439, 154 N.Y.S.2d 10, 136 N.E.2d 484); and remand is necessary for determination
of the amount of the attorneys' fees properly incurred in the defense of the
title action and for modification of the judgment accordingly. Otherwise, the
order of the Appellate Division, 328 N.Y.S.2d 474, to the extent that it is
before us pursuant to the Appellate Division's grant of leave, is correct.
The order appealed from should be modified so as to provide that the case be
remitted to the Supreme Court, Rockland County, for further proceedings in
accordance with this memorandum and, as so modified, affirmed, without costs.
FULD, C.J., and BURKE, SCILEPPI, BERGAN, BREITEL, JASEN and GIBSON, JJ.,
concur.
Ordered accordingly.
341 N.Y.S.2d 100, 31 N.Y.2d 953, 293 N.E.2d 249
END OF DOCUMENT
Court of Appeals of New York.J. Herbert GRIMSEY et al., Respondents,v.LAWYERS TITLE INSURANCE CORPORATION, Defendant-Appellant and Third-PartyPlaintiff, Thomas P. Lynch, Third-Party Defendant. (And Another Title.)
Dec. 29, 1972.
Action was brought for breach of contract of title insurance. The Supreme Court, Rockland County, entered judgment in favor of plaintiffs against title insurance company, and the company appealed. The Supreme Court, Appellate Division, Second Department, modified, affirmed and remanded, 38 A.D.2d 572, 328 N.Y.S.2d 474, and leave to appeal was granted. The Court of Appeals held that award for amount of plaintiffs' counsel fees was proper insofar as it embraced the cost of services rendered in defense of the claim of title interposed against them, but was unauthorized to the extent that it included fees incurred in prosecuting the instant action against the title insurance company and on appeal in that action.
Order of Appellate Division modified and affirmed.
West Headnotes
Insurance 3375217k3375 Most Cited Cases (Formerly 217k675)
In action for breach of contract of title insurance in which plaintiffs recovered to the extent of their interest, award for amount of plaintiffs' counsel fees was proper insofar as it embraced the cost of services rendered in defense of the claim of title interposed against them, but was unauthorized to the extent that it included fees incurred in prosecuting the action against the title insurance company and on appeal in that action. ***101 **250 *955 Samuel Kirschenbaum and Arthur Winoker, New York City, for appellant.
Krashes, Leyden & Lessinger, Spring Valley, for respondents.
No appearance for third-party defendant.
MEMORANDUM.
The award for the amount of plaintiffs' counsel fees was proper insofar as it embraced the cost of services rendered in defense of the claim of title interposed against the plaintiffs but was unauthorized to the extent that it included attorneys' fees incurred in prosecuting the action brought against the title insurance company and now before us (Doyle v. Allstate Ins. Co., 1 N.Y.2d 439, 154 N.Y.S.2d 10, 136 N.E.2d 484); and remand is necessary for determination of the amount of the attorneys' fees properly incurred in the defense of the title action and for modification of the judgment accordingly. Otherwise, the order of the Appellate Division, 328 N.Y.S.2d 474, to the extent that it is before us pursuant to the Appellate Division's grant of leave, is correct.
The order appealed from should be modified so as to provide that the case be remitted to the Supreme Court, Rockland County, for further proceedings in accordance with this memorandum and, as so modified, affirmed, without costs.
FULD, C.J., and BURKE, SCILEPPI, BERGAN, BREITEL, JASEN and GIBSON, JJ., concur.
Ordered accordingly.
341 N.Y.S.2d 100, 31 N.Y.2d 953, 293 N.E.2d 249
END OF DOCUMENT