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\\nMulti-Unit Construction Exclusion Eliminates Coverage\\n\\nMidvale Indemnity Company (\\u201cMidvale\\u201d) sued Arevalos Construction Corp. \\n(\\u201cArevalos\\u201d), Victor Siguenza Zuniga (\\u201cZuniga\\u201d), 625 Halsey LLC \\n(\\u201cHalsey\\u201d), D&G Construction NY Inc. (\\u201cD&G\\u201d), and RM \\nConstruction and Development Corp. (\\u201cRM\\u201d) seeking a declaratory judgment\\n relating to a commercial general liability insurance policy Midvale \\nissued to Arevalos and an underlying lawsuit in New York state court, \\ncaptioned Victor Siguenza Zuniga v. 625 Halsey LLC, Index No. \\n525911/2018 (the \\u201cUnderlying Action\\u201d).\\n\\nIn Midvale Indemnity Company v. Arevalos Construction Corp., et al, No. \\n22-CV-97 (FB) (RML), United States District Court, E.D. New York (July \\n5, 2023) was asked to overturn the report and recommendations of the \\nMagistrate Judge to acknowledge the default and order no coverage for \\ndefense or indemnity of anyone named in the Underlying action.\\n\\nFACTS\\n\\nD&G and Zuniga timely objected to the report of the Magistrate \\njudge. These objections triggered the US District Judge\'s de novo \\nreview.\\n\\nD&G, a subcontractor of Arevalos claiming coverage and a right to \\nindemnification by Arevalos\' insurer Midvale, and Zuniga, the injured \\ntort claimant in the Underlying Action, has been named as defendants in \\nthis declaratory action by Midvale. D&G and Zuniga object to the \\nMagistrate\'s finding that none of the named defendants was owed coverage under the policy.\\n\\nDISCUSSION\\n\\nD&G and Zuniga object to the conclusion that they lack standing to \\noppose Midvale\'s motion, its finding that none of the named defendants \\nwere entitled to coverage, and the scope of its declaratory relief.\\n\\nThe Magistrate recommended finding that D&G\'s subcontractor \\nagreement with Arevalos imposed no duty on Midvale, a \\u201cstranger to that contract,\\u201d to D&G. He also found that \\u201cD&G does not claim to be a\\n third-party beneficiary of the Policy,\\u201d that \\u201cthe Policy does not \\nindicate an intent to confer a benefit upon D&G or any other \\nindividual or entity other than Arevalos,\\u201d and that \\u201cZuniga is not a \\nnamed insured or third-party beneficiary under the Policy.\\u201d\\n