Archives for Business Litigation

The Effective Use of Mediation to Resolve Lawsuits for Insurance Companies

Mediation serves as an effective alternative dispute resolution mechanism for insurance companies, offering a cost-effective, time-efficient, and relationship-preserving method to resolve lawsuits, ultimately benefiting both insurers and policyholders. In an era where litigation costs continue to soar, and the legal system is often bogged down by lengthy court processes, the need for alternative dispute resolution (ADR) methods has never been more critical. Mediation, in particular, has emerged as a powerful tool for resolving lawsuits, especially in the insurance sector. This essay explores the affective use of mediation in resolving insurance lawsuits, highlighting its advantages over traditional litigation and emphasizing its
Read More

Injured Plaintiff’s Case Doomed by Failure To Provide Evidence that Business Owner Had Actual or Constructive Notice of Dangerous Condition

In Sharif v. Dominant Domain, the NJ Appellate Division upheld the trial court’s grant of summary judgment to a business owner who was sued by a plaintiff injured in a slip and fall. Finding that plaintiff failed to offer competent evidence to demonstrate actual or constructive notice of a dangerous condition, the Court held that there was no genuine issue of material fact regarding notice of any hazard prior to plaintiff’s fall. In her deposition, plaintiff testified that she slipped and fell on ice while descending exterior stairs at the rear entrance of defendant’s commercial building. She had not seen
Read More

NJ Court Applies “On-Going Storm Rule” to Affirm SJ to Landscaper and Reverse SJ to Community Association in Personal Injury Case

In Hanna v. Woodland Community Association, the New Jersey Appellate Division was asked to determine whether the trial court erred in granting summary judgment to a landscaper, a community association, and a property management company based on the “on-going storm rule” adopted by the New Jersey Supreme Court in Pareja v. Princeton Int’l Props. in 2021. Under this rule, commercial landowners do not have a duty to remove the accumulation of snow and ice until the conclusion of a winter storm. The Court agreed with the trial court that under the rule, the landscaper, community association and management company had
Read More

NJDC Deems Independent Contractor Delivery Drivers Employees Under the ABC Test in Summary Judgment Ruling

In Portillo v. National Freight, Inc. (“NFI”), a class of commercial truck drivers brought suit against NFI alleging that it misclassified them as independent contractors (“ICs”) and improperly deducted certain fees from their pay in violation of the New Jersey Wage Payment Law (“WPL”). The parties filed cross motions for summary judgment on the issue of whether the drivers were ICs or employees under New Jersey law. Utilizing the ABC Test, the court held that NFI misclassified the drivers as ICs when, in fact, they were actual employees of NFI. The class of drivers were truck owner operators that made
Read More

Philadelphia Court Refuses to Dismiss Bar’s COVID-19 Lawsuit Against Underwriters

Without providing a substantive rationale, a state court judge in Philadelphia has refused to preliminarily dismiss a bar’s COVID-19 business interruption lawsuit brought against certain London Market underwriters. In a two-page order, the court in Taps & Bourbon on Terrace LLC v. Certain Underwriters at Lloyd’s, London, No. 200700375 (Phila. C.C.P. Oct. 26, 2020) determined that it would be “premature” to address the insurer’s factual contentions. “Taking the factual allegations made [in] the plaintiff’s complaint as true, as this court must at this time, plaintiff has successfully pled to survive this stage of the proceedings. Moreover, the law and facts
Read More

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
Read More

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
Read More

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
Read More