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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

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

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

Federal Judge Katherine Polk Failla of the Southern District of New York granted summary judgment in favor of Zurich American Insurance Company in connection with a contingent business interruption claim asserted by its insured, Lantheus Medical Imaging, Inc.  The insured claimed that it sustained a contingent business interruption (“CBI”) loss in excess of $75 million… Continue reading N.Y. Federal Court Grants Summary Judgment in Connection with a Contingent Business Interruption Claim

In addition to asserting a claim seeking coverage under its insurance policy, an insured frequently will assert a claim alleging that its insurer acted in bad faith in not paying the claim.  This often occurs in cases involving uninsured motorist (“UM”) and underinsured motorist (“UIM”) claims.  A UM claim is asserted by an insured against… Continue reading N.J. Appellate Court Once Again Holds Bad Faith Claim Should Be Severed and Stayed

In an unpublished decision, Judge Barry P. Sarkisian, of the Superior Court of New Jersey, Hudson County, held that the continuous trigger applied in a construction defect case involving a claim for coverage under a commercial general liability policy.  Because the policy at issue went into effect after the damage manifested itself, the court also… Continue reading N.J. Trial Court Holds Continuous Trigger Applies in Construction Defect Case

Here is a link to my most recent article, titled “Finding Coverage in the Absence of Actual Damage: The Continuing Erosion of the Physical Loss or Damage Requirement under First-Party Insurance Policies,” which appeared in the March issue of Covered Events, the newsletter of the DRI Insurance Law Committee: http://portal.criticalimpact.com/newsletter/newslettershow5.cfm?contentonly=1&content=22818&id=2772

On February 18, 2015, the New Jersey Supreme Court issued two bad faith decisions, Badiali v. New Jersey Manufacturers Insurance Group, (A-48-12) (071931), and Wadeer v. New Jersey Manufacturers Insurance Company, (A-54) (072010).  The cases both involved uninsured motorists (“UM”) claims asserted against New Jersey Manufacturers Insurance Company (“NJM”). UM coverage “insur[es] the policy holder,… Continue reading New Jersey Supreme Court Issues Two Insurance Bad Faith Decisions

The general statute of limitations for breach of contract actions in New Jersey is six years.  That statute generally applies to claims seeking recovery under an insurance policy.  Most first-party property insurance policies, however, contain an express contractual provision, known as a suit-limitation provision, that limits the time period within which an action seeking recovery… Continue reading N.J. Federal Court Holds Suit-Limitation Provision No Bar to Sandy Claim

Judge Travis L. Francis of the Superior Court of New Jersey, Middlesex County, denied a motion for reconsideration filed by Wakefern Food Corporation in a Hurricane Sandy insurance case.  The court had previously granted summary judgment in favor of Lexington Insurance Company and Wakefern asked the court to reconsider its prior decision. The primary issue… Continue reading Motion for Reconsideration Denied in NJ Hurricane Sandy Case