Interrelated Acts Constitute a Single Claim
Post 5165
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In Yonah Rothman v. Complete Packaging & Shipping Supplies, Inc. and Mitchell Mankosa, Complete Packaging & Shipping Supplies, Inc. v. Arch Insurance Company, No. 22-CV-2821-SJB-ST, United States District Court, E.D. New York (August 4, 2025) dealt with the issue of parties seeking a partial judgment to be resolved on appeal.
Complete Packaging & Shipping Supplies, Inc. (“Complete”) and Arch Insurance Company (“Arch”) litigated disputes about coverage in relation to the Rothman employment discrimination action.
THE KEY ISSUES
Background:
Yonah Rothman filed a lawsuit against Complete and Mitchell Mankosa, alleging employment discrimination, underpayment, and wrongful termination. Rothman claims he was retaliated against for participating in a separate lawsuit brought by another employee.
Insurance Coverage Dispute:
Complete sought defense and indemnification from Arch based on their insurance policy. The policy covers conduct between December 5, 2021, and December 5, 2022, and includes an “interrelated claims” provision.
Court’s Decision:
The court dismissed Complete’s third-party complaint seeking defense and indemnity from Arch. The dismissal was based on the finding that the Rothman Actions arose from the same interrelated acts, constituting a single claim made in 2020, which was outside the policy’s coverage period.
Rule 54(b) Motion:
Complete filed a motion for entry of a partial judgment under Rule 54(b) to appeal the dismissal order.
Judicial Concerns:
The court highlighted concerns about the immediate appeal of indemnity issues, which are related to liability and may require the appellate court to address factual issues still being litigated.
ANALYSIS
Complete filed a Third-Party Complaint against Arch, seeking defense and indemnification in the Rothman Action based on an insurance policy between them (the “Policy”). The Policy provides coverage to Complete for conduct between December 5, 2021, to December 5, 2022.
The Policy also contains an “interrelated claims” provision that provides that all claims arising from the same facts are considered a single claim and deemed to have been brought on the date of the earlier claim.
The USDC noted that the employment discrimination actions arose from the same interrelated acts-the alleged retaliation by Complete against Rothman for his assistance with another lawsuit against Complete. Judge Merchant held that the two Actions constituted a single claim made in 2020, outside of the Policy’s coverage. Judge Merchant, therefore, granted Arch’s motion to dismiss.
The USDC concluded that the long-standing policy against piecemeal appeals required that the court’s power to enter such a final judgment before the entire case is concluded. The USDC noted that permitting an aggrieved party to take an immediate appeal, must be exercised sparingly.
Complete offers no alleged hardship or injustice for the Court to consider. Complete seeks judgment on both parts of the Arch dismissal, i.e., a resolution of both defense and indemnity obligations under the contract. The district court certified as final judgments its orders holding the insurers liable to provide a defense and allocating defense costs amongst the insurers. Final judgment was not entered with respect to the insurers’ duty to indemnify, however.
Although indemnity and liability issues are in some sense separate and distinct, they are nevertheless related. Indeed, by its very nature indemnity is collateral to and dependent upon a finding of liability. But even as to defense obligations, there is no blanket requirement that such issues be certified for partial appeal. Rule 54(b) judgment (and appeal) imposes a more demanding standard than the parties’ own assessment that it would be efficient to allow these appeals.
To that end, a defense claim (even against a third-party insurer) must be extricable and separate from the other claims being litigated. Were the Court to certify the dismissal for appeal, the Second Circuit could be forced to make an insurance coverage decision that would be undermined or superseded by a subsequent ruling in the underlying litigation.
Piecemeal litigation is not only inefficient but raises the risk of inconsistent judgments in coverage litigation that is appealed while underlying merits are resolved.
The motion for entry of a partial judgment under Rule 54(b) was denied.
ZALMA OPINION
Insurance coverage disputes are seldom easy. In this case the court found a duty to defend one part of the litigation seeking defense from the insurer, Arch, but found that both cases were based on a single cause that occurred before the Arch policy became effective. Seeking an Appeal of the issue of duty to defend or the duty to indemnify before a decision was made on the one issue sought to piecemeal the appeals, stretching the litigation beyond efficiency, which was properly refused.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
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The Professional Claims Handler
Post 5218
Read the full article at https://www.linkedin.com/pulse/zalma-philosophy-claims-handling-part-8-barry-zalma-esq-cfe-zdwsc, see the full video at https://rumble.com/v70zl4s-the-zalma-philosophy-of-claims-handling-part-8.html and at https://youtu.be/MIYcF71ffRQ, and at https://zalma.com/blog plus more than 5200 posts.
Claims Commandment X – Thou Shall Not Pretend to be a Lawyer
Some experienced and professional claims people know the law in their area of expertise better than most lawyers.
Adjusters should be adjusters and leave lawyering to lawyers. Similarly, lawyers should be lawyers and never try to be adjusters.
Claims Commandment XI – Thou Shall Empathize With the Claimant
Everyone presenting a claim is unhappy, disturbed, shocked, injured and needs help.
Empathy is identification with and understanding of another’s situation, feelings, and motives. It is the ability to understand another person’s circumstances, point of view, thoughts, and feelings....
HOW TO CREATE AN EXCELLENCE IN CLAIMS HANDLING PROGRAM
See the full video at https://rumble.com/v70wb2i-the-zalma-philosophy-of-claims-handling-part-6.html and at https://youtu.be/tL5nDKPEs40 and at https://zalma.com/blog plus more than 5200 posts.
Post 5217
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry.
An Excellence in Claims Handling program begins with a statement in the insurer’s claims manual or statement of professionalism that it is dedicated to providing excellence in claims handling to every insured who presents a claim.
The excellence in claims handling program should include, at a minimum:
A series of lectures supported by text materials explaining:
A definition of insurance.
How to read and understand an insurance policy.
How to interview an insured, witness, or claimant.
How to assist an insured in the insured’s obligation to ...
The Professional Claims Handler
Post 5216
Read the full article at https://www.linkedin.com/pulse/zalma-philosophy-claims-handling-part-5-barry-zalma-esq-cfe-jde8c, see the full video at https://rumble.com/v70q4x8-the-zalma-philosophy-of-claims-handling-part-5.html and at https://youtu.be/6b9tZQsEkB4, and at https://zalma.com/blog plus more than 5200 posts.
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry.
Standards to be a Professional Claims Adjuster
The Insurance claims professional should be a person who:
1. Can read and understand the insurance policies issued by the insurer.
2. Understands the promises made by the policy.
3. Understand their obligation, as an insurer’s claims staff, to fulfill the promises made.
4. Are competent investigators.
5. Have empathy and recognize the difference between empathy and sympathy.
6. ...
The Professional Claims Handler
Post 5219
Posted on October 31, 2025 by Barry Zalma
An Insurance claims professionals should be a person who:
Can read and understand the insurance policies issued by the insurer.
Understands the promises made by the policy.
Understand their obligation, as an insurer’s claims staff, to fulfill the promises made.
Are competent investigators.
Have empathy and recognize the difference between empathy and sympathy.
Understand medicine relating to traumatic injuries and are sufficiently versed in tort law to deal with lawyers as equals.
Understand how to repair damage to real and personal property and the value of the repairs or the property.
Understand how to negotiate a fair and reasonable settlement with the insured that is fair and reasonable to both the insured and the insurer.
How to Create Claims Professionals
To avoid fraudulent claims, claims of breach of contract, bad faith, punitive damages, unresolved losses, and to make a profit, insurers ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
