O'Dowd v. American Surety Co.

Plaintiff and defendant-respondent are general contractors. They entered into a contract with the New York City Housing Authority (hereinafter called the Authority) to perform certain improvements at the Jacob Biis Houses in New York City. In connection therewith, they procured from appellant insurer’s predecessor a liability insurance policy which provided that the insurer would “ pay on behalf of the insured all sums which the insured shall become obligated to pay by reason of the liability imposed upon him by law for damages ” (emphasis supplied). The policy excluded “ liability assumed by…