In Berg v. Nationwide Mut. Ins. Co., the Pennsylvania Superior Court examined a lengthy dispute arising from a first-party automobile insurance claim. After an accident, the initial damage estimate determined that the insured vehicle should be declared a total loss. The insurer subsequently concluded that the vehicle was repairable and directed a collision facility to undertake repairs. The plaintiff policyholders alleged that the repairs were insufficient and that the vehicle was left with permanent frame damage rendering it unable to withstand a collision. The policyholders filed suit against the insurer and repair facility, asserting claims for breach of contract, insurance
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Monthly Archives April 2018
New Jersey Appellate Court Holds That Life Insurer is Not Equitably Estopped From Declining to Reinstate Policy When Policyholder Died Before Satisfying Policy Requirements for Reinstatement
In Nationwide Life Ins. Co. v. Thompson, the Superior Court of New Jersey, Appellate Division, considered a dispute over life insurance policy proceeds. The subject policy had been cancelled for non-payment of premium after two notices and the expiration of a sixty-one day grace period. Shortly after receiving notice of the cancellation, the policyholder contacted the insurer to request reinstatement. The policy language stated that the policy could be reinstated while the policyholder was alive if the policyholder applied for reinstatement within three years of cancellation, provided satisfactory evidence of insurability, and paid three months of premiums. The policyholder satisfied
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New Jersey Appellate Division Affirms Summary Judgment for Defendant in Premises Liability Action Due to Absence of Actual or Constructive Knowledge of Dangerous Condition
In Kurc v. All Star One, the Appellate Division of the New Jersey Superior Court analyzed a lawsuit arising from an accident at a cheerleading practice. While walking to meet her granddaughter at the end of the practice, the plaintiff stepped on a mat in order to avoid a child sitting on another mat in the walkway. The mat moved as the plaintiff was stepping off it, causing her to fall and injure her wrist. The plaintiff brought a negligence action against several parties connected with the facility where the accident occurred. The defendants filed a motion for summary judgment,
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Statutory Cause of Action for Insurance Bad Faith Remains Under Consideration by New Jersey Legislature
In a recent note, we discussed the New Jersey Legislature’s consideration of the Insurance Fair Conduct Act, which would establish a statutory cause of action for the bad faith handling of insurance claims. On April 12, 2018, the New Jersey Senate approved an amendment of the bill to exclude insurance producers and public entities. The bill remains under consideration before the Legislature. We will continue to monitor the progress of the bill and advise of further developments.
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New Jersey Legislature to Consider Statutory Bad Faith Cause of Action for Insurance Claims
The New Jersey Senate will soon vote on a bill that would establish a statutory cause of action for the bad faith handling of insurance claims. If enacted, the New Jersey Insurance Fair Conduct Act would create a private cause of action for “an unreasonable delay or unreasonable denial of a claim for payment of benefits under an insurance policy.” The Insurance Fair Conduct Act would also create a private cause of action for any insurance unfair trade practices prohibited by N.J. Stat. 17:29B-4, including: misrepresentations of policy contracts; false advertising; defamation; unfair discrimination; and unfair claim settlement practices. The
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New York Federal Court Holds That Arbitrators Must Decide Whether Party Waived Right to Arbitrate
In Syngenta Crop Protection, LLC v. Ins. Co. of North America, the United States District Court for the Southern District of New York addressed an action against a liability insurer for coverage for asbestos claims. The policyholder first notified the insurer of the claims in 1999. The insurer responded with a reservation of rights letter explaining why the claims may not be covered. However, the insurer took no further action on the claims. In 2008, the policyholder made a formal demand for indemnification. In 2017, the insurer finally issued a denial of coverage. In its denial, the insurer asserted for
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New Jersey Appellate Court Holds That There is No Coverage for Domestic Violence Under a Standard Liability Policy
In D.G. v. B.E.A., the New Jersey Superior Court, Appellate Division addressed a demand for a homeowners’ liability insurer to provide defense and indemnification of a lawsuit raising allegations of domestic violence. The insurer denied coverage on the grounds that the lawsuit did not raise allegations of an “occurrence” as required by the policy, and also because the lawsuit fell within an exclusion for injuries “expected” or “Intended” by the policyholder. The policyholder claimed that the lawsuit should be covered because he was extremely intoxicated at the time of the incident and was unable to form an intent to cause
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New Jersey Appellate Court Holds That Insurer’s Decision to Provide “Courtesy Defense” of Non-Covered Action Does Not Constitute Estoppel
In Northfield Ins. Co. v. Mt. Hawley Ins. Co., the New Jersey Superior Court, Appellate Division, examined a declaratory judgment action brought by a property owner’s insurer against a contractor’s liability insurer. The case arose from a roof installation performed by the contractor and a subcontractor at a hotel in the summer of 2012. Shortly after the work was completed, Superstorm Sandy struck the property, causing roof damage and water damage to the hotel’s interior. The hotel’s property insurer advised the contractor’s insurer of a potential claim. The contractor’s insurer rejected the claim, determining that the damage at issue was
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