Rochester Woodcraft Shop, Inc. v. General Accident Fire & Life Assurance Corp.

Plaintiff seeks indemnification under a liability insurance policy issued by defendants for an amount paid by it in settlement of a property damage claim and legal expenses incurred as a result of defendants’ alleged breach of their obligation to defend an action brought against plaintiff by a *187third party (herein “ Shay’s ”). Crucial here is the language of a so-called exclusionary clause in the policy which provided that as to certain coverages the policy did not apply to property “ in the care, custody or control ” of plaintiff.

Upon the trial the parties and the court failed to recognize…