North Star Reinsurance Corporation, Respondent-Appellant v. Continental Insurance Company, Respondent, and U.S…

Summary

The Court rejected the doctrine of preindemnification and affirmed the Appellate Division orders, holding that the owners' right to common‑law indemnification was not waived by the contractors' purchase of owners' insurance and that the antisubrogation rule bars subrogation claims in Prince and Valentin but not in North Star where the GCL policy was excluded. Justice Simons dissented, arguing that the issues should be remanded to determine whether owners waived indemnification and that the antisubrogation rule should not apply.