Resmac 2 LLC v. Madison Realty Capital, L.P.

Plaintiffs failure to notify defendant of the adversary proceeding commenced in the bankruptcy court is not excused by the fact that defendant received notice of the pending litigation from another source (see Travelers Ins. Co. v Volmar Constr. Co., 300 AD2d 40, 43 [2002]). However, defendant did not establish that it was prejudiced by plaintiffs failure, and thus, pursu*441ant to the terms of the policy, plaintiffs failure “shall” not prejudice plaintiff’s rights under the policy. Defendant received notice from plaintiff of its potential liability under the policy, as well as a copy of the…