Appellate Division of the Supreme Court of the State of New York March 14, 1997, Appeal No. 3 (Potter v. National Grange Mutual Insurance)

Judgment unanimously affirmed without costs. Memorandum: Supreme Court erred in concluding that, by breaching its duty to defend, defendant, National Grange Mutual Insurance Company (National Grange), was collaterally estopped from contesting whether the loss is within the policy coverage (see, Servidone Constr. Corp. v Security Ins. Co., 64 NY2d 419, 423).