Federal Insurance v. Cowen

OPINION OF THE COURT

David B. Saxe, J.

This action involves a claim by an insurer regarding its alleged right to a damaged Andy Warhol painting as "salvage”. The painting was owned by the defendants, who obtained insurance on the painting from the plaintiff in 1982, in the amount of $35,000. In December 1982, the painting was damaged while in transit. The defendants obtained an expert’s assessment of the damage, and based upon that assessment, the insurance broker recommended to the parent company that the full limit of liability be paid. Along with the insurer’s *993$35,000 draft a letter of…