In a case I litigated in the Southern District of New York, the court applied the de facto merger doctrine and held US Liability (Mount Vernon)was obligated to reimburse the New York State Insurance Fund for 20% of the verdict in the underlying action up to its $1 million policy limit. The underlying action involved injuries to one Yong Hwan Chae and the relationship betweeen the US Liabilty insured, Master Duct, and another company owned by the same principal, who operated from the same address, performing the same work.