83 A.D.2d 919 | N.Y. App. Div. | 1981
Order, Supreme Court, New York County (Scott, J.), entered December 15,1980, which, inter alia, granted plaintiff-respondent’s motion to disqualify certain attorneys (the aggrieved party, Abrams and Martin) from representing defendant-appellant (Unigard), unanimously reversed, on the law and the facts and in the exercise of discretion, and motion denied, without costs. Appeal from the order, Supreme Court, New York County (Scott, J.), entered February 5,1981, which denied defendant’s motion for renewal of the prior order, entered December 15,1980, treated as one for reargument, dismissed as nonappealable, without costs. This is an action instituted by the Superintendent of Insurance as liquidator of Resources Insurance Company (R.I.C.) to recover damages from Unigard on certain reinsurance treaties. R.I.C. had serious financial problems which culminated in an apparent impairment of minimum surplus in violation of section 311 of the Insurance Law. The New York State Department of Insurance conducted a special examination of the financial condition of R.I.C., which resulted in a rehabilitation order, consented to by R.I.C. Subsequently, in 1975, R.I.C. was liquidated. Abrams and Martin have represented Unigard since 1972. In October of 1974, with knowledge that Abrams and Martin