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Kensington Insurance loses bid to undo default in breach case
New York’s appellate court said the insurer missed repeated discovery deadlines and offered only a conclusory explanation of law office failure, leaving the default intact.
Kensington Insurance Company lost its attempt to reopen a breach-of-contract case after New York’s Appellate Division, Second Department refused to undo a default tied to missed discovery deadlines, according to Insurance Business.
The policyholders sued in Kings County alleging Kensington failed to pay a covered loss under the insurance policy. After the insurer filed its answer, the case moved into discovery, where the process stalled.
In November 2023, the trial court ordered Kensington to answer outstanding discovery requests within 20 days and warned that sanctions would follow without good cause. The insurer did not comply, and in February 2024 the court struck Kensington’s answer by default after the policyholders sought that penalty.
Kensington later asked in March 2024 to reopen the matter, citing “law office failure” by its lawyers. The trial court denied the motion and the appeals court agreed, saying Kensington did not show a reasonable excuse or a defense worth hearing, and it also dismissed a separate appeal because the order arose from the insurer’s own default, affirming the decision and awarding costs to the policyholders.