Archives for Business Litigation

Contractor seeking indemnity in a construction defect litigation survives summary judgment, court dismisses bad faith and promissory estoppel claims against insurer

A Federal District Court judge in South Carolina has determined that material questions remain for trial in a complex insurance matter tied to an underlying construction defect class action against Dan Ryan Builders, LLC. Dan Ryan Builders West Virginia, LLC et al. v. Main Street America Assurance Co., No. 2:18-cv-00589-SCN (D.S.C.), arose from a dispute between Dan Ryan Builders and a class of homeowners living in allegedly damaged houses in a South Carolina subdivision known as Foxbank. The construction company hired several subcontractors to construct Foxbank, and the subcontractors’ insurers are the defendants ultimately sued to defend and indemnify Dan
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New York Trial Court Applies Flood Exclusion to Superstorm Sandy Business Interruption/Food Spoilage Claim

In Northern Spy Food Co., LLC v. Tower Nat’l Ins. Co., an insured restaurant challenged its insured’s denial of a business interruption/food spoilage claim with regard to a power outage occurring during Superstorm Sandy. In denying the claims, the insurer contended that the policy’s flood exclusion applied, as the power outage was caused by extensive flooding at a power station. In analyzing coverage, the Supreme Court of New York County noted that the business interruption policy language provided coverage for a suspension in operations resulting from a “direct physical loss” that is “caused by or result[ed] from a Covered Cause
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New Jersey Implements Complex Business Litigation Program on State-Wide Basis That May Impact Some Insurance Cases

On November 13, 2014, the New Jersey Supreme Court issued an Order implementing the Complex Business Litigation Program on a state-wide basis. The Program, which has been operating in Bergen and Essex counties since 1996, will now encompass all cases filed in New Jersey on or after January 1, 2015 satisfying the criteria summarized below. The language in the Order may be interpreted to exclude insurance coverage matters filed by individual policyholders, including bad faith claims. However, the Program is likely to encompass many commercial insurance lawsuits, as well as construction defect matters wherein insurers are defending contractors. Cases under
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