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
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Combating Fraud: Strategies for Insurance Companies to Reduce Fraudulent Claims
To effectively reduce fraudulent claims, insurance companies must implement a multifaceted approach that includes leveraging advanced technology, enhancing employee training, and fostering a culture of transparency and accountability within the industry. In the insurance industry, fraudulent claims pose a significant threat to profitability and sustainability. Estimates suggest that fraud accounts for billions of dollars in losses each year, which ultimately leads to higher premiums for consumers and a strain on resources. Therefore, it is imperative for insurance companies to adopt innovative strategies that not only detect but also prevent fraudulent activities. By leveraging technology, enhancing training programs, and promoting a
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Court Reverses Dismissal in Slip and Fall Case: When Missing Railings Matter
In an unpublished decision, the New Jersey Appellate Division reversed the dismissal of a premises liability lawsuit in Pippis v. PDC 16-20 Hudson Place Realty, LLC, et al. The case centers on whether a missing handrail at the bottom of a staircase, coupled with inadequate lighting, could constitute negligence by a property owner and its tenant, contributing to a slip and fall accident. Nicolette Pippis, the plaintiff, filed a lawsuit after she slipped and fell while exiting a building owned by PDC 16-20 Hudson Place Realty, LLC. Pippis had just visited MKG Mundial, LLC, a tenant in the building, when
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Slip and Fall on Black Ice: New Jersey Appellate Court Revives Case Against Wawa
In a recent unpublished decision, the New Jersey Appellate Division revived a negligence lawsuit filed by Plaintiff Jamie Sterlacci against Wawa Food Market. Sterlacci, who slipped and fell on black ice in Wawa’s parking lot, challenged the trial court’s dismissal of her case. The appellate court ruled that there were enough factual disputes to warrant a trial, particularly on whether Wawa had constructive notice of the hazardous condition. Sterlacci visited a Wawa store in Rahway, New Jersey, around midnight on February 17, 2021. Although the main roads were clear, remnants of a snowstorm from two days earlier left black ice in the parking
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Tenant’s Fall on Defective Staircase: NJ Appellate Court Focuses on Landlord’s Duty to Inspect Common Areas
In Vargas v. Orosco (unpublished), a personal injury case involving a slip and fall on a staircase at a leased property, the Appellate Division of the New Jersey Superior Court remanded the trial court’s grant of summary judgment to the landlords on the basis that a question of material fact existed as to whether the location of the incident was a common area under the landlords’ control or an area in the exclusive control of the tenant. The trial court found that the cause of the plaintiff’s fall was a latent defect unknown to the parties, so no liability could be
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NJ’s Appeals Court Upholds Personal Liability Exclusion Denying Coverage for Injuries to Person “Living With” Insured
The Appellate Division of New Jersey’s Superior Court recently addressed a case involving insurance liability coverage for personal injuries suffered by a person who lived with the policyholder. Finding that an exclusion in the policy barring liability coverage for a person who lives with the insured was unambiguous and clearly written, the Court affirmed the trial court’s summary judgment in favor of the insurer. In Iaeck v. Barnaba and Federal Insurance Company (unpublished), plaintiff brought suit after falling down a stairway in the condominium she was living in with defendant Barnaba, who owned the house. Plaintiff had lived with Barnaba
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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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NJ Appeals Court Applies Holding of Baldwin Shields v. Ramslee to Oral Lease Between Landlord and Tenant in Premises Liability Action for Slip and Fall on Snow and Ice
In a personal injury negligence case involving a slip and fall on leased property, the Appellate Division of the New Jersey Superior Court, relying on the precedential decision of Baldwin Shields v. Ramslee Motors, affirmed the trial court’s grant of summary judgment to a property owner on the basis that a commercial property owner can properly delegate the duty to remove snow and ice to a tenant. Clark & Fox was instrumental in obtaining the important holding in Ramslee by taking the case all the way to the New Jersey Supreme Court to secure liability protection for commercial landowners who
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NJ Trial Court Commits Plain Error in Failing to Make a Merits-Based Coverage Decision in Declaratory Judgment Claims Airing Out of Dog Bite Case
In a non-published opinion, the Appellate Division of the New Jersey Superior Court vacated a trial court’s dismissal of a plaintiff’s declaratory judgment against an insurer after conducting a de novo review and finding that the trial court committed plain error in entering summary judgment in favor of the insurer. As set forth below, the procedural background of Sanchez v. Fernandez is quite convoluted, but at the end of the day, the Appellate Court found that the trial court committed plain error in granting summary judgment to the insurer regarding coverage when issues of material fact existed. Plaintiff was injured
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NJ Appeals Court Confirms ACC Clause Excludes Coverage for Loss Caused by Water Seepage and Earth Movement
In Headley v. Stillwater Insurance Group (unreported), the trial court granted summary judgment to an insurer in a case involving coverage for the collapse of a home foundation. The policy at issue contained water and earth movement exclusions with an anti-concurrent clause (“ACC”). Such a clause precludes coverage for losses resulting in any manner from and excluded cause. The lower court held that the water and earth movement exclusions barred coverage for the loss due to the ACC clause. On appeal, the Appellate Division affirmed the decision and the insured’s case was dismissed. The insured’s home suffered property damage after
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