Clausen Miller's East Coast Coverage Group Obtains Summary Judgment
July 14, 2009
On July 9, 2009, the Appellate Division of the Superior Court of New Jersey affirmed the grant of summary judgment obtained by CM Partner Ruth V. Simon (New Jersey Office), in a coverage action in which the insured sought business interruption coverage for the collapse of its dock. The Insured, an oil storage terminal, initially claimed that it had a flood loss and sought $2.1 million from its Insurer (CM's client).
CM's client is a member insurer of one of the largest insurance groups in the world. After the claim was denied, the Insured filed suit against CM's client and its broker, alleging that it was entitled to $2.1 million dollars in damages for business interruption. The Insured then changed its theory and sought damages for a collapse caused by hidden decay. Ultimately, the trial court agreed with Ms. Simon that the question of policy interpretation was a question of law and the policy was clear and unambiguous. Relying on Ms. Simon's presentation and her engineering expert's opinion, the trial court found that the cause of the loss was not hidden decay but was visible, and that the loss was excluded under CM's client's Policy. The Insured appealed this decision. The appeal was handled and argued by Kimberly Hartman of CM's Appellate Group, with Ms. Simon assisting in the appellate briefing. The Appellate Court agreed with CM's arguments, affirmed the trial court's holding, and thus CM's client paid nothing to its Insured on the $2.1 million business interruption claim.
If you would like to learn more about business interruption or other coverage matters, please feel free to e-mail Ruth V. Simon (rsimon@clausen.com) or call her at 973/401-0470, ext. 3410.
