New York CM Report of Recent Decisions (2010v4)
2010 Volume 4
A summary of significant recent developments in the law focusing on substantive issues of litigation and featuring analysis and commentary on special points of interest.
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Articles in this report
Court Finds An Issue Of Fact Regarding Whether Damage To A Structural Foundation Wall Constitutes “Collapse”
Susan C. Khuns brought a breach of contract action against her property insurer, Bay State Insurance Company, seeking coverage under her homeowner's policy for damage to a structural foundation wall in her home that she claimed collapsed. Bay State previously denied the claim by letter, finding that the loss did not constitute a "collapse" under the Policy and thus no coverage was available.
Insured Purchased, But “Stranger-Owned” Life Insurance Policies Are Acceptable
New York's highest court answered in the affirmative the question of whether an individual may, under New York's insurable interest law, take out an insurance policy on his/her own life and immediately transfer the policy to a person without an insurable interest in the insured's life, in a "stranger-owned life insurance" ("SOLI") scheme.
Insured’s Failure To Provide Reasonable Excuse For Late Notice May Serve As Basis To Disclaim Coverage Under A Commercial General Liability Policy
Commercial general liability policies generally require an insured to notify its insurer of an occurrence "as soon as practicable." If the insured fails to do so, and the insurer subsequently disclaims coverage on the grounds of late notice, the courts usually allow the insured to present a reason for the delay. The reasonableness of the delay is generally an issue of fact to be determined at trial.
New Jersey Supreme Court Clarifies The Economic Loss And Integrated Product Doctrines
In New Jersey, the economic loss doctrine typically bars recovery under the Product Liability Act (the "Act"), for damages to the product itself. In Dean v. Barrett Homes, Inc., 204 N.J. 286 (November 15, 2010), the issue involved whether the Act would preclude recovery for damage to a home caused by defective synthetic stucco siding.
Oral Agreement To Procure Insurance May Trigger Additional Insured Coverage Despite “Written” Requirement In Additional Insured Endorsement
The Appellate Court held that a premises owner and a construction manager were not additional insureds under a liability policy's additional insured endorsement which provided additional insured coverage to a person or organization whom the named insured is required to add as an additional insured under a "written contract, agreement or permit" which must be executed prior to the loss.
Removal From State Court May Be Timely Even After 30 Days From Service Of A Complaint
In Moltner v. Starbucks Coffee Co., (No. 094943-cv (2d Cir., November 2, 2010)), a 76 year old female plaintiff, Rachel Moltner, purchased a "venti" sized cup of tea at a Starbucks Coffee Co. ("Starbucks") location. Ms. Moltner had difficulty removing the lid to add sugar, and in the course of her efforts spilled the tea on herself, causing burn injuries which required a skin graft and an extended hospital stay with secondary injuries.
