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Farm Family Mut. Ins. Co. v. Moore Business Forms

Supreme Court of New York, Albany County

January 3, 1995, Decided

INDEX NO.534-91


 [*657]  [**798]   Joseph Harris, J.

Plaintiff moves pursuant to CPLR 3212 for an order granting it summary judgment on its first cause of action for breach of certain express and implied warranties and representations made by defendant to plaintiff. Defendant opposes the motion and cross-moves pursuant to CPLR 3212 for an order granting it summary judgment dismissing plaintiff's complaint in its entirety. Plaintiff opposes defendant's cross motion as it relates to the first cause of action set forth in plaintiff's complaint, but consents to an order granting defendant summary judgment dismissing the second, third, and fourth causes of action set forth in plaintiff's complaint. Accordingly, defendant's cross motion for summary judgment with respect to the second, third and fourth causes of action set forth in plaintiff's complaint is hereby granted upon plaintiff's consent.

 [***2]   [**799]  Plaintiff ordered various insurance forms, including defendant's New York cancellation notice form NYOP-31, from defendant for use in conjunction with its policies of insurance. In conjunction with the sale of forms, defendant agreed to keep advised of State laws and regulations relating to insurance forms and further agreed to notify plaintiff of same. Form NYOP-31 conformed with applicable State laws and regulation at the time of sale. However, thereafter said form did not comply with section 313 (1) (a) of the Vehicle and Traffic Law which requires that the form include a statement that proof of financial security must be maintained throughout the registration. Because of this omission, the form was determined to be ineffective (see, Barile v Kavanaugh, 67 NY2d 392 [1986]).

As a result, policies of insurance issued by plaintiff which plaintiff had intended and attempted to cancel by service of defendant's New York cancellation notice form NYOP-31 (April 1984 and November 1984 editions) were not cancelled and remained in full force and effect. Consequently, plaintiff has been compelled to make payments on said policies.

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164 Misc. 2d 656 *; 625 N.Y.S.2d 798 **; 1995 N.Y. Misc. LEXIS 161 ***

Farm Family Mutual Insurance Company, Plaintiff, v. Moore Business Forms, Inc., Defendant.


Prior History: (RJI No.0191 025264). (Justice Joseph Harris, Presiding).


WARRANTY, consequential damages, implied warranty, summary judgment, conspicuous, first cause, unconscionable, cancellation

Business & Corporate Compliance, Types of Damages, Consequential Damages, Actions for Price, Commercial Law (UCC), Buyer Remedies, Damages, General Overview, Sales (Article 2), Remedies, Limitations & Modifications, Buyer's Damages & Remedies, Application & Construction, Damages, Torts, Consequential & Incidental Damages, Unconscionable Limitations, Limitation & Modification, Seller's Damages & Remedies, Contracts Law, Defenses, Unconscionability, Contract Provisions, Contract Terms, Unconscionable Terms, Subject Matter, Warranties, Exclusions & Modifications, General Provisions (Article 1), Definitions & Interpretation, Inferences & Presumptions, Sales of Goods, Merchantability, Conspicuous, General Provisions