In an unpublished opinion, the Appellate Division of the New Jersey Superior Court found in favor a commercial tenant and against the landlord in an action that focused on the interpretation of the lease between the two parties to determine which party was responsible for maintenance and insurance of the common area sidewalk. In Senatore v. Kmart Inc., plaintiff brought suit against Kmart after falling on an allegedly defective portion of the sidewalk. Kmart, the tenant, tendered its defense to Belmont, the landlord, as an additional insured under Belmont’s policy. When Belmont’s insurer rejected the tender because Belmont had neglected
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Insurer’s Claims for Negligent Misrepresentation, Fraud and Civil Conspiracy Against Adjusters and Attorneys May Proceed
The United States District Court for the Eastern District of Pennsylvania ruled Monday that Church Mutual Ins. Co.’s lawsuit against a public adjusting firm and licensed public adjuster may proceed for claims of negligent misrepresentation, fraud and civil conspiracy. Church Mutual’s claims for civil conspiracy against two attorneys also survived. The action arose from two claims presented by a public adjusting firm on behalf of Church Mutual’s insured, African Episcopal Church of St. Thomas (AEC), for alleged water damage caused by frozen pipes in a chiller system and roof damage caused by hurricane Irene. Investigation into the claims and testimony
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New York Appellate Court Continues Expansive Interpretation of Additional Insured Endorsement
A New York Appellate Court recently reinforced a trend in New York to provide coverage to additional insureds under the standard Additional Insured Endorsement. In Burlington Ins. Co. v. NYC Transit Auth., the court held that the standard AI Endorsement provides additional insured coverage where there is a causal link between the named insured’s conduct and the injury, regardless of whether the named insured was negligent or otherwise at fault for causing the accident. This decision follows holdings in other cases over the past several years that broadly construed the AI Endorsement to provide coverage even when the named insured
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New Jersey Appellate Court Finds Lack of Specificity in Causation of Negligence Claim Does Not Bar Suit
A New Jersey Appellate Court ruled that a plaintiff’s lack of specificity as to what caused her bicycle accident did not support the trial court’s finding that the plaintiff presented no evidence of causation to support her negligence claim. In Walter v. California Avenue Ventures LLC, the Appellate Court reversed the trial court’s summary judgment in favor of the defendants and found that the record established a triable issue of fact on whether the condition of the sidewalk caused plaintiff’s fall and subsequent injuries. In Walter, plaintiff was injured while riding her bike when she hit an object on the
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Third Circuit Holds ERISA Plan Administrator Must Inform Claimant of Plan-Imposed Deadline for Judicial Review in Notification Denying Benefits
In Mirza v. Insurance Administrator of America, Inc., 2015 WL 5024159, (3d Cir. Aug. 26, 2015), the Court of Appeals addressed the principal question of whether under the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq. plan administrators must inform claimants of plan-imposed deadlines for judicial review in their notifications denying benefits. 29 C.F.R. § 2560.503-1(g)(1)(iv) provides that when a plan administrator denies a request for benefits, it must set forth a “description of the plan’s review procedures and the time limits applicable to such procedures, including a statement of the claimant’s right to
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NJ Supreme Court Clarifies Amount Owed to Innocent Third Party for Bodily Injury Payment Under Voided “Basic” Auto Policy
The NJ Supreme Court recently examined the amount an insurer issuing a “basic” insurance policy, which was subsequently voided for material misrepresentation in the application for insurance, must pay for a bodily injury claim of an innocent third party. In Citizens United Reciprocal Exchange v. Perez, the Court determined that under New Jersey’s compulsory system of auto insurance, the auto insurer is liable to the innocent third party only for the statutory minimum bodily injury payment in circumstances where the insured elects to add the “basic” policy’s $10,000.00 coverage for third-party bodily injury. Notably, the Court also held that the
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NY Court Holds Injured Third Party Has No Cause of Action for Unfair Claims Practices and Bad Faith in Suit Against Insurer and Claims Examiner
A New York trial court dismissed an action for unfair claims practices and insurer bad faith against an insurer and a claims examiner that was brought by a third-party claimant injured in an auto accident. In Hunter v. Hereford Ins. Co., the Civil Court of Queens County held that plaintiff failed to state a cause of action against the insurer and additionally, as a third party, lacked privity to sue the insurer of the driver that had injured her. The court also dismissed the action against the claim examiner on the basis that she was acting as an agent of
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NJ Supreme Court Declines to Extend Residential Public-Sidewalk Immunity to Homewoners Association (HOA) Privately Owned Sidewalks
Under New Jersey law, commercial property owners have a duty to maintain the sidewalks abutting their properties and can be held liable for injuries occurring on those sidewalks. Residential landowners, on the other hand, do not have the same responsibilities and are immune from claims for personal injuries on residential sidewalks. In the 2011 case of Luchejko v. City of Hoboken, the New Jersey Supreme Court extended residential sidewalk immunity to Homeowners Associations (“HOAs”) for injuries occurring on public sidewalks adjoining residential condominium communities. Recently, the Court addressed the issue of whether this immunity also applies to claims for personal
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New Jersey Appellate Division Says When Dealing With Discovery Dispute Between Insureds and Insurers Over Privileged Documents, In-Camera Review Must Be Conducted and Discovery as to Breach of Contract and Bad Faith Claim Bifurcated
On July 27, 2015, in Alden Leeds v. QBE Specialty Ins. Co., unpublished, No. A-2034-14T1 (App. 2015), the New Jersey Appellate Division rendered an important decision addressing discovery disputes between insureds and insurers over privileged documents. Alden Leeds involved a coverage dispute with QBE Specialty and Certain Underwriters at Lloyd’s, London over whether a fire that destroyed Alden Leeds’s warehouse was a covered fire loss or an excluded flood loss. Alden Leeds, a manufacturer and seller of pool chemicals, stored chemicals in a warehouse insured by QBE and Underwriters. The warehouse was damaged by fire during Super Storm Sandy. The
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NJ Court Permits Jury Trial To Insureds In Fraud Cases
Court OKs Jury Trials for Private Insurance Fraud Defendants Michael Booth, New Jersey Law Journal July 21, 2015 | 0 Comments SHARE PRINT REPRINTS Barry Albin Barry Albin Carmen Natale The New Jersey Supreme Court has ruled that defendants in civil actions brought under the state’s Insurance Fraud Prevention Act (IFPA) have the right to a jury trial. In a unanimous ruling in Allstate Insurance v. Lajara, the court disagreed with two lower courts that said private claims brought under the IFPA are equitable and, therefore, there is no right to a trial by jury. Justice Barry Albin, writing for
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