Nationwide Insurance v. New York Lighter Co.

On May 30, 2001 the home owned by Frank Maloney and Allison Maloney (hereinafter together the Maloneys) in Hopewell Junction was destroyed by a fire. According to Allison Maloney, the fire was accidentally started by the Maloneys’ then-four-*951year-old son, who allegedly obtained a beer-bottle-shaped lighter from her purse, and ignited the lighter in the living room.

Nationwide Insurance Company (hereinafter Nationwide) was the Maloneys’ casualty insurer at the time of the fire, and it reimbursed the Maloneys up to the limits of their policy. The Maloneys, however, allege that their losses exceed…