Valleybrook Country Club, LLC v. Hallmark Specialty Ins. Co.

Valleybrook Country Club, LLC v. Hallmark Specialty Ins. Co.

Opinion

STEVEN J. POLANSKY, P.J.Cv.

INTRODUCTION

Multiple defendants have filed the present Motion to Dismiss the Complaint pursuant to Rule 4:6-2.

Defendants, Arch Specialty Insurance Company, Axis Surplus Insurance Company, Everest Indemnity Insurance Company, Iron Shore Specialty Insurance Company, RSUI Indemnity Company, West Chester Surplus Lines Insurance Carrier, and Homeland Insurance Company of Delaware, have jointly filed a Motion to Dismiss the Complaint for failure to state a claim. Defendant Everest Insurance Company separately files a Motion to Dismiss the Complaint for Failure to State a Claim and joins in the motion filed by co-defendants.

Defendants [*3]  Certain Underwriters at Lloyds of London (Unique Market Reference B123019AWS1637), HDI Global SE, General Security Indemnity Company of Arizona, Crum & Foster Specialty Insurance Company, Western World Insurance Company and Safety Specialty Insurance Company, identifying themselves as second layer excess insurers, also cross move to dismiss plaintiff's Second Amended Complaint for failure to state a claim upon which relief can be granted.

PLAINTIFF'S SECOND AMENDED COMPLAINT

Plaintiffs allege that they own or manage 21 hotel, resort and recreation destinations in multiple jurisdictions, including New Jersey. They assert a loss in excess of $10,000,000 allegedly resulting from the Covid-19 pandemic. The aggregate coverage available is alleged to be $500,000,000,

The properties at which losses are alleged to have occurred include the States of New Jersey, Pennsylvania, North Carolina, Maryland, Florida, Colorado and West Virginia. It is claimed that the policy of insurance issued by Hallmark Specialty Insurance Company is part of the lead primary layer of $10,000,000 in coverage.

Plaintiffs assert they are entitled to coverage under the Hallmark policy for business interruption, extra expense, [*4]  order of civil/military authority, contingent time element coverage, extended period of indemnity coverage, booking reservation interruption coverage, decontamination costs and professional fees. They claim that all other insurance policies follow the terms of the Hallmark policy.

Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.