Zurich Insurance Company, Respondent v. Shearson Lehman Hutton, Inc., Formerly Known as Shearson Lehman Brothers…

Summary

The New York Court of Appeals held that New York's public policy barring indemnification for punitive damages applies to out-of-state judgments, but because the Georgia award contained a compensatory component it is covered, whereas the Texas award, being solely punitive, is not. The Court applied a grouping‑of‑contacts analysis to determine that New York law governs the insurance contract.