East Coast CM Report of Recent Decisions – 2018 Vol. 3

November 12, 2018 / CM Reports

Defending A Claim For Attorney’s Fees In Bad Faith Actions: Third Circuit Court Of Appeals Affirms Decision To Deny Outrageously Excessive Claim For Attorney’s Fees

In a contested Bad Faith lawsuit brought by the named insureds against their insurance carrier, the United States Third Circuit Court of Appeals, in the case of Clemens v. New York Central Mutual Fire Insurance Company, 2018 U.S. App. LEXIS 25803 (3d Cir. Sept. 12, 2018), heard arguments as to whether the claimants were entitled to attorney’s fees pursuant to Pennsylvania’s Bad Faith Statute, 42 Pa. Cons. Stat. § 8371.

A Policyholder’s Willful Misrepresentations And Failure To Cooperate Merits Dismissal Of Its Claim

A New York Federal Court granted summary judgment to an insurer following a fire loss based upon its finding that the insured breached the Policy’s concealment or fraud condition by making willful and material misrepresentations with the intent to defraud the insurer regarding the deed and mortgage at the time the fire loss occurred.

Twenty-Five Years Later, Daubert Finally Comes To New Jersey

On August 1, 2018, the New Jersey Supreme Court reconciled the State’s standard under N.J.R.E. 702, and 703, with the Daubert standard adopted by the Federal Courts in 1993 and by many State Courts thereafter, with the exception of New Jersey and others in its decision.

New York Appellate Court Holds That Even Though There Was No Negligence, Broad Indemnification Clause Required Indemnification Of Defendant’s Costs Related To The Defense Of The Action

In Robinson v. Brooks Shopping Center, LLC, et. al., 2017 N.Y. App. Div. LEXIS 1929, 2017 NY Slip Op 01972, Plaintiff tripped and fell over an alleged defect in the sidewalk, which she described as an “uneven spot” which “wasn’t as level as the other side” of a “little ridge” of concrete in the ground.

New Jersey Joins Growing Trend Of Mandatory Paid Sick Leave And Strengthens Anti-Discriminatory Pay Practice Laws

This year, New Jersey has taken additional steps to protect employees by bolstering measures to prevent discriminatory pay and ensuring paid leave to all employees. To that end, Governor Phil Murphy amended the New Jersey Law Against Discrimination (“LAD”) to broaden its protection against discriminatory pay practices and adopted a statewide paid sick leave law.

Pennsylvania Supreme Court Applies Vehicle Liability Exception To Governmental Immunity When Driver Outside Vehicle

In Balentine v. Chester Water Authority, 2018 Pa. LEXIS 4299 (Aug. 21, 2018), the Supreme Court of Pennsylvania, Middle District eliminated over 30 years of case law precedent on the vehicle liability exception to governmental immunity.

Res Ipsa Loquitur Inference Permitted Against Condominium Association And Property Management Company For Malfunctioning Elevator Door

The Supreme Court of New Jersey recently held that a plaintiff can utilize res ipsa loquitur, an equitable doctrine that allows a permissive inference of negligence, in suit against a condominium association, the condominium’s property management company, and an elevator-maintenance provider.

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