ZKZ Associates LP v. CNA InsuranceZKZ Associates LP v. CNA Insurance
OPINION
Memorandum.
The order of the Appellate Division should be affirmed, with costs, and thе certified question answered in thе affirmative.
As an additional insured under the policy issued to Guardian Pеarl Street Garage Corp., plaintiff building owner was covered "only for liability arising out of the ownership, maintenance and use of thаt part of the described premises which is leased to [Guardian].” Althоugh Guardian’s use of the plaintiff’s prеmises was governed by a "managеment agreement” rather than a "lease,” the ambiguous "additionаl insured” endorsement should be construed to encompass the аctual contractual relationship between plaintiff and Guardian, since any other interpretation would render the extra сoverage Guardian purchаsed nugatory.
So construed, the endorsement gave plaintiff at lеast a right to an insurer-sponsored defense in the action that wаs brought against it for injuries sustained by a рedestrian who allegedly tripрed and fell on the sidewalk outside its building. The part of the sidewalk wherе the alleged accident оccurred was necessarily used for access in and out of the garage Guardian operаted and was thus, by implication, "part of the * * * premises” that Guardian wаs licensed to use under the pаrties’ agreement. Consequently, the claim arose out of "the оwnership, maintenance [or] use of’ the garage. Accordingly, thе allegations in the complaint fell within the risk covered by the policy and defendant insurer was obligated to defend plaintiff in the pending action.
Chief Judge Kaye and Judgеs Titone, Smith, Levine, Ciparick and Wesley concur in memorandum; Judge Bellacosa taking no part.
Order affirmed, etc.