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YMCA of Plattsburgh v. Phila. Indem. Ins. Co.

United States District Court for the Northern District of New York

November 30, 2018, Filed

8:18-CV-0565 (LEK/DJS)

Opinion

MEMORANDUM-DECISION AND ORDER

I. INTRODUCTION

This insurance coverage dispute is before the Court following its removal from New York State court on diversity of citizenship pursuant to 28 U.S.C. §§ 1441(a), 1446, and 1331. Dkt. No. 1 ("Notice of Removal"). The former executive director of Plaintiff, the Young Men's Christian Association ("YMCA") of Plattsburgh, failed to properly implement its employee benefits program for approximately fifteen employees, resulting in underpayment to the YMCA Retirement Fund. Dkt. No. 2 ("Complaint") ¶¶ 7, 14. During the relevant period, Plaintiff had an employee benefits insurance policy with defendant Philadelphia Indemnity Insurance Company, which has largely denied coverage for the funds Plaintiff owes to the Retirement Fund. Id. ¶¶ 4-6, 9-16. Seeking declaratory relief and damages, Plaintiff alleges that [*2]  Defendant has violated its contract as well as certain state statutory duties. Id. ¶¶ 19-35.

Defendant now moves to dismiss the suit for failure to state a claim. Dkt. Nos. 6 ("Motion to Dismiss"), 6-2 ("Memorandum"), 17 ("Reply"). Plaintiff opposes the motion. Dkt. No. 14 ("Opposition"). For the following reasons, the Motion to Dismiss is granted in part and denied in part.

II. BACKGROUND

The following facts are taken from the allegations in the Complaint, which are assumed to be true when deciding a motion to dismiss. Bryant v. N.Y. State Educ. Dep't, 692 F.3d 202, 210 (2d Cir. 2012).

Plaintiff is a non-profit organization existing under the laws of New York State, with its principal place of business in Plattsburgh, New York. Compl. ¶ 1. Defendant is a corporation incorporated, and with its principal place of business in Pennsylvania. Id. ¶ 2.

In April 2015, Defendant issued to Plaintiff a "comprehensive Commercial Lines (insurance) Policy" ("CL Policy"), with a policy period of May 1, 2016 through May 1, 2017. Compl. ¶ 4. Among the endorsements included in the policy was one providing "Employee Benefits Administration Errors and Omissions Insurance" ("Benefits Insurance Policy"). Id. ¶ 5. Plaintiff paid an additional premium for this coverage. Id. [*3] 

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2018 U.S. Dist. LEXIS 202818 *; 2018 WL 6267923

YOUNG MEN'S CHRISTIAN ASSOCIATION OF PLATTSBURGH, Plaintiff, -against- PHILADELPHIA INDEMNITY INSURANCE COMPANY, Defendant.

CORE TERMS

coverage, insured, benefits, employee contribution, damages, allegations, employees, employee benefits, insurance policy, consequential damages, attorney's fees, contributions, parties, motion to dismiss, practices, bad faith, contracting, funds, reimbursement, Disclaimer, expenses, omission, pension, punitive damages, good will, contractual, legally obligated to pay, breach of contract, obligation to pay, cause of action