Peterson v. New York State Electric & Gas Corp.

Appeal from an order of the Supreme Court (O’Shea, J), entered June 6, 2012 in Chemung County, which denied Erie Insurance Company’s motion to sever its property damage subrogation claim from plaintiffs’ personal injury action.

In December 2005, plaintiffs and their two children resided in a home located at 714 Fox Street in the Village of Horseheads, Chemung County, and plaintiff Kenneth E. Peterson, an auto mechanic, operated a business next door known as Pete’s Garage. At approximately 5:00 a.m. on December 10, 2005, while the family was asleep in the residence, plaintiffs’ home exploded…