Third Circuit Court of Appeals Holds Contractual Liability Exclusion Bars Coverage for Breach of Contract Claim

As a general rule, a liability insurance policy does not provide coverage for a breach of contract claim.  Such policies typically contain a contractual liability exclusion, which provides that there is no coverage for defense costs or liability arising out of the alleged breach of a contract or other agreement.  The reason behind such an… Continue reading Third Circuit Court of Appeals Holds Contractual Liability Exclusion Bars Coverage for Breach of Contract Claim

N.J. Appellate Division Holds No Coverage for Mold Damage

In Kavesh v. Franklin Mutual Insurance, No. A-5210-13T1 (App. Div. June 10, 2015), the Appellate Division affirmed a trial court’s ruling that there was no coverage for mold damage under a homeowner’s insurance policy issued to Sheldon and Shirley Kavesh by Franklin Mutual Insurance.  The policy contained a specific exclusion for loss or damage caused… Continue reading N.J. Appellate Division Holds No Coverage for Mold Damage

Recovery of Attorney’s Fees in Insurance Coverage Actions

As a general rule, the prevailing party in a litigation is not entitled to recover attorney’s fees from the losing party.  This is known as “the American rule.”  There are, however, several exceptions to this rule.  One such exception is that attorney’s fees may be recoverable “[i]n an action upon a liability or indemnity policy… Continue reading Recovery of Attorney’s Fees in Insurance Coverage Actions