After ignoring a prior order to pay fees, the insurer was ordered again to pay the total fees incurred without challenge to defense counsel’s hourly rates. Chelsea Piers, L.P. v. Colony Ins. Co., 2019 N.Y. Misc. LEXIS 6333 (N.Y. Sup. Ct. Nov. 25, 2019).
Chelsea Piers was an additional insured on policies issued by Colony to EPS Iron Works, Inc. The court previously denied Colony’s motion for summary judgment and granted summary judgment to Chelsea Piers, establishing Colony’s duty to defend and to reimburse for past defense costs. Colony, however, failed to reimburse Chelsea Piers for its defense costs.
Colony did not dispute that the prior order required it to reimburse Chelsea Piers for past defense costs and defense costs going forward. Nor did Colony challenge the reasonableness of the hours and tasks billed by defense counsel. Rather, Colony contested only the reasonableness of Rivkin Radler’s (defense counsel) hourly rates.
Colony, however, did not move for a reasonableness hearing on the hourly rates. And Colony did not put forth any evidence suggesting that Rivkin Radler’s hourly rates were unreasonably high – not merely higher than Colony would prefer to pay. The court determined that Colony was not entitled to disregard a court order from which it never sought to pay.
Colony waived any challenge to the reasonableness of Chelsea Piers’ defense costs incurred up to the date of this order. Colony was ordered to pay all defense costs that Chelsea Piers had incurred prior to the date of the order, and for which Chelsea Piers had already provided Colony with property documentation.