Westchester Fire v. Northwest Airlines

I. Background

Defendant Phil Mendez owned and operated an aircraft maintenance business under the name Professional Aircraft Line Services (“PALS”).1 Mendez provided maintenance ser- vices for aircraft at the McCarran International Airport in Las Vegas. Northwest Airlines was one of his customers, under a contract that required Mendez to purchase and maintain com- mercial general liability insurance.

Mendez was insured under an Airport Owners and Opera- tors General Liability Policy issued by Westchester. As is commonly the case, the policy provided that Mendez was required to give prompt notice of any possible claim:

You must see to it that we are notified as soon as practicable of an “occurrence” or an offense which may result in a claim. . . If a claim is made or “suit” is brought against any insured, you must (1) Immedi- ately record the specifics of the claim or “suit” and the date received; and (2) Notify us as soon as practi- cable. . . . You and any other involved insured must: (1) Immediately send us copies of any demands, notices, summonses or legal papers received in con- nection with the claim or “suit” . . . .

This action arises out of an incident on…