Archives for Insurance Law

NJ Appeals Court Continues its Rejection of Insurance Coverage Claims for Covid-19 Business Losses, But Allows Fraud Claims Against Insurers to Continue

In an unpublished opinion, the Appellate Division of the New Jersey Superior Court addressed yet another case in which an insured business owner sought coverage for losses allegedly suffered due to the presence of COVID-19 and Governor Murphy’s Executive Orders (“EOs”). In Fleming Ruvoldt PLLC v. Sentinel Insurance Company, Ltd. et. al., the plaintiff business owner filed multiple claims against the insurer, the insurer’s parent company, and the plaintiff’s insurance broker.  As set forth more fully below, the Court affirmed the trial court’s dismissal of the coverage claims against the insurers and professional negligence claims against the broker. The Court did, however,
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New York Trial Court Finds Policy’s Personal Liability Endorsement Excludes Insurer’s Duty to Defend Insured in Underlying PI Suit

In an insurance coverage action regarding an insurer’s duty to defend or indemnify defendant property owners in an underlying personal injury suit, the New York County Supreme Court determined that the suit was excluded from coverage and entered default judgment in favor of the insurer. Defendants, although properly served by the insurer, failed to enter appearances, so the insurer brought a motion pursuant to CPLR 3215 for default judgment and presented competent evidence that it had no duty under the facts of the case and language of the policy to defend or indemnify the defendants because the property where the
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New York Laborer Wins Summary Judgment Under Scaffolding Law for Injuries from Fall

A New York laborer won summary judgment against a property owner and general contractor under the “Scaffolding Law” (Labor Law § 240(1)) when he was injured after falling from a ladder. In Chornopyskyy v. 151 Ludlow Owner LLC, the Kings County Supreme Court entered summary judgment in plaintiff’s favor, holding that there was a violation of the Scaffolding Law that proximately caused plaintiff’s injuries. While the court noted that an accident alone does not establish a 240(1) violation, it found that plaintiff presented prima facie evidence to support his claim under the law. Plaintiff was working a construction project in
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Another NJ Insured Loses Coverage Fight for Economic Losses Caused by Business Suspensions During Covid Pandemic

In Antone’s, A Bar 401, LLC v. American Property Insurance Company, the insured filed a declaratory judgment action seeking coverage for business losses that arose after New Jersey’s governor declared a state of emergency for the Covid pandemic and issued Executive Orders suspending the operations of non-essential businesses. The insurance policy at issue had coverage provisions for business interruption and losses caused by civil authority, as well as a virus exclusion. Relying on its decision on Mac Property Group v. Selective Fire & Casualty Insurance Company, which involved similar facts and legal issues, the court affirmed summary judgment in the
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PAED Rules That Public Adjuster Not Qualified to Testify to Causation of Loss and Coverage Under the Insurance Policy

In Coates v. Metropolitan Property and Casualty Insurance Company, the District Court of the Eastern District of Pennsylvania addressed a situation where an insured attempted to name his public adjuster (“PA”) as an expert to testify to the cause of a property damage loss and coverage under the policy. In granting the insurer’s motion in limine to preclude the PA’s report and testimony, the judge found that while the PA meet the “qualification” prong under FRE 702, he failed to meet the “reliability” and “fit” prongs. Accordingly, the PA’s report and testimony were barred. The loss at issue in this
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USDC for New Jersey Grants Summary Judgment to Casualty Insurer in Property Coverage Dispute Stemming from Superstorm Sandy for Filing Suit After the Expirationof the Suit Limitations Provision

In G. Matts Hospitality, LLC t/a Sands Motel v. Scottsdale Insurance Company and John Doe 1-100, the Federal District Court of New Jersey addressed a case in which an Insured suedits commercial insurer for property damage caused by Superstorm Sandy. The action was brought more than three years after the Insured received a coverage determination letterfrom the Insurer that partially denied coverage. The Insured filed a Complaint against the Insurer asserting a cause of action for breach of contract seeking consequential damages due to the alleged failure to pay a covered loss. The Court found that the Insurance Policy’s suit
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New Jersey Appellate Division Reverses Grant of Summary Judgment to Allstate in Declaratory Judgment Action to Determine Liability Coverage Under an Auto Insurance Policy

In Allstate New Jersey Property & Casualty Insurance Company v. Estate of Sean McBride, the Appellate Division of the Superior Court reversed the trial court’s decision that summary judgment be granted to Allstate in a case seeking a declaration that Allstate was not obligated to provide liability insurance coverage to the Estate of McBride for claims arising from a car accident. The trial court had determined that no genuine issues of material fact existed and held that no coverage was available for McBride under the Allstate policy. The Appellate Division disagreed and found that there were genuine issues of material
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USDC for Western District of New York Grants Summary Judgment to Homeowner’s Insurer in Property Coverage Dispute and Finds that Demolition Costs Should Be the Responsibility of the Property Owner

In Porter v. State Farm Fire & Casualty Co., the District Court for the Western District of New York addressed a case in which Plaintiff brought suit against her homeowner’s insurer following a fire that destroyed the insured property. Plaintiff sought coverage under the policy for replacement cost, rental income, personal property coverage and debris removal. The matter was assigned to a Magistrate Judge, who analyzed the coverage issues and submitted a Report and Recommendation (“R&R”) that the Court grant State Farm’s Motion for Partial Summary Judgment on Plaintiff’s claims for replacement cost, rental income and personal property coverage and
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New Jersey Appellate Court Affirms Trial Court Ruling That A Tenant’s Insurer Has No Duty to Provide Coverage to a Landlord’s Real Estate Manager As An Additional Insured

In Diaz v. Chrys S. Norwood Family, LP, the New Jersey Appellate Division affirmed the trial court’s grant of summary judgment to an insurer in a personal injury suit that included a declaratory judgment cross-claim by one of the defendants for insurance coverage. In this case, the Plaintiff was an employee of a tenant who was injured when he slipped on ice and brought suit against the landlord, the landlord’s property manager, and another third party. The property manager sought defense and indemnification from the tenant’s insurer as an additional insured on the basis that the tenant’s policy included coverage
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Pennsylvania Supreme Court To Review Superior Court Decision Regarding the Payment of General Contractor Overhead and Profit

The Pennsylvania Supreme Court granted certiorari in Wintersteen v. Truck Insurance Exchange to examine the appellate court’s holding that general contractor overhead and profit (“GCOP”) was not required to be factored into two homeowners’ actual cash value payments from their insurer for property damage. The appellate court reversed the trial court’s holding that GCOP was required by state law to be included in actual cash value payments. The Supreme Court granted review to address one issue: whether the Superior Court erred as a matter of law in finding that the limitation of payment of GCOP from actual cash value in
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