East Coast CM Report of Recent Decisions – 2018 Vol.1

“Can We Lower Our Flood Coverage?” Insurance Broker Negligent After Being Found To Have Unilaterally Lowered Flood Coverage

The Second Circuit Court of Appeals has refused to overturn two jury verdicts that found an insurance broker negligent for reducing the flood sublimit on a New York property owner’s policy prior to Hurricane Sandy, resulting in the insurance broker being found liable for $20 million.

New York Federal Court Excludes Coverage While Applying Flood Exclusion

The Eastern District Court of New York recently held that Great Northern Insurance Company’s (“Great Northern”) Policy issued to Madelaine Chocolate Novelties (“Madelaine”) unambiguously excludes storm surge in its flood exclusion.

NJ Appellate Division Affirms Finding Of Gross Negligence For . . . Failure To Plow Snow!

In a contested coverage and indemnification lawsuit arising from an underlying personal injury action, the Appellate Division of New Jersey, in the case of Moran- Alvardo v. Nev. Court Realty, LLC, 2018 N.J. Super. Unpub. LEXIS 483 (decided on March 1, 2018), heard arguments as to whether a carrier is bound to extend coverage under its additional insured endorsement despite a finding of grossly negligent conduct on the part of the additional insured.

Labor Law 240(1): ALL FACTS MATTER

New York’s Labor Law Section 240(1) is unique; no other State has a similar statute. Section 240(1) imposes a nondelegable, absolute liability on owners and general contractors for construction-related injuries, even when the party found liable does not perform or supervise the work, and does not employ the injured worker.

An Open, Obvious And Known To Plaintiff Condition Can Be Deemed As Inherently Dangerous In Certain Circumstances

In Farrugia v. 1440 Broadway Assoc., 2018 NY Slip Op 00347, Plaintiff sued the Building Owner and the Contractor for personal injuries, which he allegedly sustained while working in the basement of the building.

Restatement Of The Law Of Liability Insurance Makes Its Mark Prior To Approval

As we reported last issue, Clausen Miller’s Restatement of Liability Insurance Law Task Force assists insurers in understanding, monitoring, and responding to the Restatement’s unprecedented “rewriting” of the common law on liability insurance on a broad array of issues.

Absence Of A Handrail As A Proximate Cause Of An Accident Is Speculative Without An Expert’s Opinion And Insufficient To Defeat Summary Judgment

In Morchyk v.. Acadia 3780-3858 Nostrand Avenue, LLC, 2018 NY Slip Op 01032 (2d Dep’t February 28, 2018), the Appellate Division, Second Department affirmed an order from the trial court granting Defendant building owner’s motion for summary judgment.

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