A federal appeals court has declared that New York law prevents Lloyd’s from recovering some loss payments from Zurich American because Zurich’s insured was also an insured of Lloyd’s in a case involving a construction project at LaGuardia Airport.
The Second Circuit Court of Appeals affirmed that New York’s anti-subrogation law provides that an insurer has no right of subrogation against its own insured for a claim arising from the very risk for which the insured was covered.
The insured, Skansa USA Building