East Coast CM Report of Recent Decisions – 2021 Volume 4

January 26, 2022 / CM Reports

Judge Grants Insurers Motion To Compel Arbitration By Enforcing Arbitration Clause In Insurance Policy

In 299 N. Federal Master LLC v. General Security Indemnity Co. of Arizona et al., case number 0:21-cv-62349, in the U.S. District Court for the Southern District of Florida, the Plaintiff, owner of The Dalmar Hotel in Fort Lauderdale, Florida filed a breach of contract lawsuit against its insurers, including General Security Indemnity Company of Arizona, based on their failure to pay out the required damages per the insurance policy.

Second Circuit Declined To Assign A Specialized Or Industry-Specific Definition To The Term “Broadcasting,” As Used In An Insurance Policy, Where The Policy Did Not Explicitly Indicate That A Specialized Meaning Was Assigned 

The New Jersey Appellate Division recently affirmed a lower court holding that Plaintiff’s business was not entitled to compensation from the State as a result of shutdown orders and restrictions in 2020. In JWC Fitness, LLC v. Philip D. Murphy, in his capacity as the Governor of the State of New Jersey, Docket No. A-0639-20 (N.J. October 18, 2021), the Court determined the statutory standard for compensation was not met, and the Executive Orders did not effectuate a taking of Plaintiff’s property within the meaning of both the state and federal constitutions.

Executive Orders Restricting Businesses Do Not Amount To Compensatory Regulatory Taking

The New Jersey Appellate Division recently affirmed a lower court holding that Plaintiff’s business was not entitled to compensation from the State as a result from shutdown orders and restrictions in 2020. In JWC Fitness, LLC v. Philip D. Murphy, in his capacity as the Governor of the State of New Jersey, Docket No. A-0639-20 (N.J. October 18, 2021), the Court determined the statutory standard for compensation was not met, and the Executive Orders did not effectuate a taking of Plaintiff’s property within the meaning of both the state and federal constitutions.

Summary Judgment Granted For Defendant Property Owner Due To Strong Lack Of Notice Defense 

Recently, the New York Supreme Court, Second Department reversed an order of the lower court that denied a defendant’s summary judgment motion utilizing a lack of notice defense in an action that involved a ceiling collapse. Matson v. Dermer Management, Inc., 2021 NY Slip Op 06842 (2d Dep’t, December 8, 2021). This is a significant decision because it demonstrates the importance of strong and thorough discovery, specifically relating to notice, in premises liability matters.

N.J. Appellate Division Decision Shines Spotlight On Burden Of Proof In Third-Party Actions For Negligent Spoliation Of Evidence

An integral component of placing a potential target on notice of a pending claim is an admonition to preserve evidence. Whenever possession or control of evidence is transferred between parties (or non-parties) of an ongoing investigation or litigation, plaintiff’s and defense attorneys know well that whenever ceding evidence, they must secure a written agreement concerning the preservation of evidence from the party to whom the evidence is transferred. 

GA Court Of Appeals Denies Employee’s Claim To Subrogation Settlement Proceeds

The Georgia Court of Appeals has knocked down an attempt by the estate of a worker injured in a truck collision to claim a piece of an insurance settlement secured through a subrogation action. 

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