New York Court of Appeals Interprets Applicability of Vendor's Endorsement

The New York Court of Appeals recently held that the vendor's endorsement in a commercial general liability policy in Raymond Corp. v. National Union Fire Ins. Co. of Pittsburgh, Pa. only covered claims stemming from a defective product.  The Majority, lead by Judge Read, held that the endorsement most naturally read to describe the vendor's activities with respect to Raymond Corp.'s products, not to indemnify the vendor for its negligent performance of repair, service, demonstration, installation or rental of Raymond Corp.'s products.  In explaining some of the exclusions to the endorsement, the Majority relied on a United States Court of Appeals for the Seventh Circuit opinion in Hartford Fire Ins. v. St. Paul Surplus Lines, Ins. Co.

Judge Robert Smith in a straight-forward dissenting opinion completely disagreed with the Court's interpretation of the endorsement and its exclusion.  He observed that the Majority's interpretation rendered the exclusions superfluous.