Tuesday, August 13, 2013

Insurance Coverage Update April 2013

insurance

NEW JERSEY                                                                                                  April 2013
Priority of Coverage - Automobile Policies
Commercial Auto Insurer Does Not Owe Primary Coverage as Insured did not "Hire" Owner of Vehicle Involved in Accident
Nat'l Interstate Ins. Co. v. Champion Truck Lines, Inc., 2013 U.S. Dist. LEXIS 39795 (D.N.J. Mar. 21, 2013)
In this dispute over which insurer provides primary coverage for a tractor/trailer accident, the District of New Jersey finds that the insured trucker did not "hire" the vehicle in question and therefore, that trucker's commercial automobile policy provided excess coverage.

NEW YORK
Bad Faith -- Discovery
Court Finds Policyholder is Entitled to Documents in Claim that Insurer Intentionally Delayed Paying Attorneys' Fees
Estee Lauder Inc. v One Beacon Ins. Group, LLC, 2013 N.Y. Misc. LEXIS 1550 (N.Y. Sup. Ct. Apr. 12, 2013)
Estee Lauder sought defense and indemnity for two underlying claims alleging it dumped hazardous material at two landfills. It filed a declaratory judgment action against its insurer, who denied coverage based on late notice. The trial judge dismissed the complaint, finding the insurer timely disclaimed coverage based on untimely notice. The Appellate Division reversed, holding that the insured Estee Lauder entitled to "all post tender reasonable fees and expenses necessarily incurred in defense of [the second underlying claim], plus prejudgment interest accruing from the date of [the insurer's] repudiation of its duty to defend."

Jurisdiction -- Diversity
Federal District Court Determines Jurisdiction Exists Based on Diversity of Citizenship in Coverage Action; Rejects Insured Municipal Utilities Authority's Attempt to Remand.

Old Bridge Mun. Utils. Auth. v. Westchester Fire Ins. Co., 2013 U.S. Dist. LEXIS 40953 (D.N.J. Mar. 25, 2013)
The District of New Jersey ruled that an insurer's removal of a declaratory judgment action from state court was appropriate based on diversity of citizenship.



This newsletter contains summaries of New York and New Jersey insurance coverage decisions entered during the previous month. If you see a topic that interests you, click the link to read more and obtain a full copy of the case.
For further information, please contact the Newsletter Editors, Jonathan McHenry, Neil Mody and William P. Kraussat(973) 535-0500 or email us by clicking here.
The cases annexed to this newsletter have been reproduced by Connell Foley LLP with the permission of LexisNexis. Copyright 2013, LexisNexis, a division of Reed Elsevier Inc. No copyright is claimed as to any part of the original work prepared by a government officer or employee as part of that person's official duties.

©2013 Connell Foley.

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