Chubb Refused To Cover Landlord's Losses Over Hidden Camera: Suit

PORT CHESTER, NY — A landlord is suing its insurance provider for refusing to pay out after an employee used a hidden camera to spy on women in a restroom at a Port Chester building, according to court documents.

181 Westchester Avenue LLC sued insurer Chubb North America on March 30, seeking to force Chubb to defend it against legal claims by former tenant Caro Home LLC. Twelve people are currently suing the landlord for infliction of emotional distress over the hidden camera, but the insurer has refused to defend the property management company in court, according to legal papers.

In March 2018, Port Chester police arrested a maintenance worker who had installed a hidden camera in a restroom on the fourth floor of 181 Westchester Ave. The device was used to videotape women as they changed and used the toilet, according to investigators.

Caro Home LLC, a bathroom and bedroom decor business with offices in the building, sued 181 Westchester Avenue LLC over the incident.

The landlord didn't tell tenants in the building about the arrest until four days later. By July, the landlord termed the matter "a misunderstanding" and tenants were told the employee would be returning to work, according to the Caro lawsuit.

But in December of that same year, the maintenance employee entered a guilty plea to unlawful surveillance and possession of cocaine, according to a report from the Westchester Business Journal's Bill Heltzel.

The insurer argued that because "the allegations allege intentional acts resulting in intended damages, there is not coverage" for the damage.

Lawyers for the landlord disputed this contention in court.

"Plaintiff requests a declaration by this Court that Chubb is obligated to pay all defense costs that plaintiff has incurred to date and will incur in the future with respect to each of the claims asserted in the Underlying Action," the landlord petitioned in the court filings. "Plaintiff requests a declaration by this Court that Chubb has a duty to indemnify plaintiff pursuant to the terms of the Policy."