LexisNexis® Legal Newsroom
Mealey's Insurance - Panel: Subcontractors' Faulty Work Constitutes 'Occurrence' Under Insurance Policies

TRENTON, N.J. - Consequential damages caused by subcontractors' defective work that were unintended and unexpected constitute "property damage" and an "occurrence" under commercial general liability insurance policies, a New Jersey appeals panel ruled July 21, applying the subcontractor exception to the "your work" exclusion (Bob Meyer Communities Inc. v. James R. Slim Plastering Inc., et al., No. A-5581-12T1, N.J. Super., App. Div.; 2015 N.J. Super. Unpub. LEXIS 1754).

Mealey's PI/Product Liability - Insurer Has No Duty To Defend Negligent Supervision Claim, Panel Says, Reverses

TRENTON, N.J. - A New Jersey appeals panel on July 20 reversed a lower court's ruling that a homeowners insurer has a duty to defend its insureds against a negligent supervision claim stemming from sexual molestation claims against their teenage son, vacating the court's award of $44,656.32 in attorney fees to the insureds (P.D and J.D., individually and on behalf of M.D. v. The Germantown Insurance Co., et al., No. A-3829-12T2, N.J. Super., App. Div.; 2015 N.J. Super. Unpub. LEXIS 1731).

Mealey's Insurance - Consequential Damage Is An 'Occurrence' Under Insurance Policy, Panel Says

TRENTON, N.J. - Unintended and unexpected consequential damages caused by faulty work of subcontractors constitute "property damage" and an "occurrence" under commercial general liability insurance policies, a New Jersey appeals panel ruled July 21 (Belmont Condominium Association Inc. v. Arrowpoint Capital Corp., et al., No. A-4187-12T4, N.J. Super., App. Div.; 2015 N.J. Super. Unpub. LEXIS 1749).

Mealey's Insurance - Insurer's Denial Of Coverage Letter Was Ambiguous, Judge Rules

CAMDEN, N.J. - A federal judge in New Jersey on July 17 denied an insurer's motion for summary judgment in an insurance bad faith lawsuit, ruling that the insurer's letter partially denying coverage on a homeowners insurance policy was ambiguous (Joseph Liguori, et al. v. Certain Underwriters at Lloyds London Subscribing to Policy #AJD8955, No. 14-5898, D. N.J.; 2015 U.S. Dist. LEXIS 93090).

Mealey's Insurance - Insurer Has No Duty To Defend Negligent Supervision Claim, Panel Says, Reverses

TRENTON, N.J. - A New Jersey appeals panel on July 20 reversed a lower court's ruling that a homeowners insurer has a duty to defend its insureds against a negligent supervision claim stemming from sexual molestation claims against their teenage son, vacating the court's award of $44,656.32 in attorney fees to the insureds (P.D and J.D., individually and on behalf of M.D. v. The Germantown Insurance Co., et al., No. A-3829-12T2, N.J. Super., App. Div.; 2015 N.J. Super. Unpub. LEXIS 1731).

Mealey's Insurance - New Jersey High Court: Insurance Fraud Defendants Have Right To Jury Trial

TRENTON, N.J. - Defendants accused of being involved in an $8.1 million scheme to defraud an insurance company in violation of the Insurance Fraud Prevention Act (IFPA) have the right to a jury trial, the New Jersey Supreme Court ruled July 16, holding that the state's Legislature intended the statute to conform with the New Jersey Constitution (Allstate New Jersey Insurance Company, et al. v. Gregorio Lajara, et al., No. A-70 September Term 2013, 073511, N.J. Sup.; 2015 N.J. LEXIS 797).

Mealey's PI/Product Liability - New Jersey Supreme Court Strikes Restrictions On Whistle-Blower Claims

TRENTON, N.J. - The New Jersey Supreme Court on July 15 said that "watchdog" employees are protected by the state's whistle-blower law while performing their regular duties and that an appeals court erred in creating a standard for evaluating claims by watchdogs (Joel S. Lippman, M.D. v. Ethicon, Inc., et al., Nos. A65-13 and A-66-13 September Term 2013, 073324, N.J. Sup.; 2015 N.J. LEXIS 791).

Mealey's Toxic Tort/Environmental - New Jersey Property Owner Loses Bid For Reconsideration Of Ruling For Flintkote

WILMINGTON, Del. - A Delaware federal judge on July 14 declined to reconsider his affirmation of a bankruptcy court's grant of summary judgment to Chapter 11 debtor The Flintkote Co. on a corporate property owner's bid for relief from the bankruptcy stay to pursue state and federal environmental claims against Flintkote (8 E. Frederick Place LLC v. The Flintkote Co., et al., No. 12-1176, D. Del.; 2015 U.S. Dist. LEXIS 91005).

Mealey's Bankruptcy - New Jersey Property Owner Loses Bid For Reconsideration Of Ruling For Flintkote

WILMINGTON, Del. - A Delaware federal judge on July 14 declined to reconsider his affirmation of a bankruptcy court's grant of summary judgment to Chapter 11 debtor The Flintkote Co. on a corporate property owner's bid for relief from the bankruptcy stay to pursue state and federal environmental claims against Flintkote (8 E. Frederick Place LLC v. The Flintkote Co., et al., No. 12-1176, D. Del.; 2015 U.S. Dist. LEXIS 91005).

Mealey's Insurance - Alleged Conduct Falls Outside Scope Of Public Adjuster Definition, Panel Affirms

TRENTON, N.J. - Finding that there is no substantial nexus between underlying allegations against an insured and the professional services performed by the insured as public adjuster, a New Jersey appeals panel on July 9 affirmed a lower court's ruling that the insurer has no duty to defend against underlying negligence claims (North Jersey Public Adjusters Inc. v. Philadelphia Insurance Company, No. A-5835-11T2, N.J. Super., App. Div.; 2015 N.J. Super. Unpub. LEXIS 1662).

Mealey's Toxic Tort/Environmental - Residents: Core Claims Not Preempted In Case Of Train Derailment Chemical Spill

CAMDEN, N.J. - A group of New Jersey residents who sued railroad companies seeking damages related to a chemical spill caused by the derailment of a train crossing the bridge over Mantua Creek on July 13 filed a brief in New Jersey federal court contending that the defendants cannot argue that preemption bars the plaintiffs' claims (In re: Paulsboro Derailment Cases, No. 13-784, D. N.J.).

Mealey's Insurance - Consequential Damages Are 'Property Damage' Under Insurance Policies, Panel Says

TRENTON, N.J. - The unintended and unexpected consequential damages caused by subcontractors' defective work constitute "property damage" and an "occurrence" under commercial general liability insurance policies, a New Jersey appeals panel ruled July 9 (Cypress Point Condominium Association Inc. v. Adria Towers LLC, et al., No. A-2767-13T1, N.J. Super. App. Div.; 2015 N.J. Super. LEXIS 114).

Mealey's Litigation Procedure - Helmet Maker Cites Ruling By 4th Circuit In Seeking Dismissal Of New Jersey Suit

CAMDEN, N.J. - A June 19 ruling by the Fourth Circuit U.S. Court of Appeals provides support for dismissal of a suit alleging that Riddell Inc. falsely markets its Revolution-brand football helmet as safer than others, the manufacturer says in a July 7 letter to a federal judge in New Jersey (In re Riddell Concussion Reduction Litigation, No. 13-7585, D. N.J.).

Mealey's PI/Product Liability - Helmet Maker Cites Ruling By 4th Circuit In Seeking Dismissal Of New Jersey Suit

CAMDEN, N.J. - A June 19 ruling by the Fourth Circuit U.S. Court of Appeals provides support for dismissal of a suit alleging that Riddell Inc. falsely markets its Revolution-brand football helmet as safer than others, the manufacturer says in a July 7 letter to a federal judge in New Jersey (In re Riddell Concussion Reduction Litigation, No. 13-7585, D. N.J.).

Mealey's Insurance - New Jersey Federal Judge Adopts Recommendation, Grants Dismissal Of Insurer's Suit

NEWARK, N.J. - A New Jersey federal judge on July 1 adopted a federal magistrate's recommendation to dismiss an insurer's complaint because the insurer failed to meet its burden of proving that the New Jersey federal court has jurisdiction over its suit seeking a declaratory judgment regarding coverage for underlying personal injury suits arising out of asbestos cleanup work after the Sept. 11, 2001, terrorist attacks (Hudson Insurance Co. v. Greenwich Insurance Co., et al., No. 14-7326, D. N.J.).

Mealey's Insurance - Judge: Insurance Settlement Agreement Barred Future Claims

CAMDEN, N.J. - Summary judgment in an insurance bad faith lawsuit is warranted, a federal judge in New Jersey ruled June 29, because insureds' signing of a settlement agreement barred all future claims under a commercial lines policy (Antonio Giaccone, et al. v. Canopius US Insurance Co., No. 14-6939, D. N.J.; 2015 U.S. Dist. LEXIS 83682).

Mealey's Toxic Tort/Environmental - Railroad Company Denies Liability For Vinyl Chloride Spill From Train Derailment

CAMDEN, N.J. - Consolidated Rail Corp. (CONRAIL), one of the railroad defendants being sued in New Jersey federal court by residents who seek damages related to a chemical spill caused by the derailment of a train crossing the bridge over Mantua Creek filed an answer on June 29 in which it admits only that certain cars on the train derailed, and it "specifically" denies that the bridge collapsed. Moreover, the defendant says it admits that one of the train cars was breached and "released a limited quantity of vinyl chloride," but it denies that the event caused harm to people or property (In re: Paulsboro Derailment Cases, No. 13-784, D. N.J.).

Mealey's Antitrust/Unfair Competition - 3rd Circuit Vacates, Remands Dismissal Of Antitrust Complaint

PHILADELPHIA - A holding by a New Jersey federal judge that a settlement of patent litigation that involves only an agreement to relinquish the right to produce an "authorized generic" (no-AG agreement) did not implicate federal antitrust law was vacated by the Third Circuit U.S. Court of Appeals on June 26 (King Drug Company of Florence Inc. et al. v. GlaxoSmithKline LLC et al., No. 14-1243, 3rd Cir.; 2015 U.S. App. LEXIS 10859).

Mealey's IP/Tech - 3rd Circuit Vacates, Remands Dismissal Of Antitrust Complaint

PHILADELPHIA - A holding by a New Jersey federal judge that a settlement of patent litigation that involves only an agreement to relinquish the right to produce an "authorized generic" (no-AG agreement) did not implicate federal antitrust law was vacated by the Third Circuit U.S. Court of Appeals on June 26 (King Drug Company of Florence Inc. et al. v. GlaxoSmithKline LLC et al., No. 14-1243, 3rd Cir.; 2015 U.S. App. LEXIS 10859).

Mealey's PI/Product Liability - Judge Applies Maritime Law To Asbestos Case, Finds Bare Metal Defense Bars Claims

NEWARK, N.J. - Maritime law governs cases arising from dry dock work, and the bare metal defense bars the negligence and strict liability claims, a federal judge in New Jersey held June 24 (Kenneth T. Shearer and Barbara Shearer v. A.W. Chesterton Co., et al., No. 13-5887, D. N.J.; 2015 U.S. Dist. LEXIS 81828).

Mealey's Insurance - Judge Grants Insured's Voluntarily Dismissal Of Superstorm Sandy Dispute

CAMDEN, N.J. - A New Jersey federal judge on June 23 granted an insured's motion for voluntarily dismissal of his breach of contract lawsuit against his federal flood insurer in a Superstorm Sandy coverage dispute (Ernie Giordano v. Philadelphia Contributionship Insurance Co., No. 14-0904, D. N.J.; 2015 U.S. Dist. LEXIS 80859).

Mealey's Toxic Tort/Environmental - Judge Applies Maritime Law To Asbestos Case, Finds Bare Metal Defense Bars Claims

NEWARK, N.J. - Maritime law governs cases arising from dry dock work, and the bare metal defense bars the negligence and strict liability claims, a federal judge in New Jersey held June 24 (Kenneth T. Shearer and Barbara Shearer v. A.W. Chesterton Co., et al., No. 13-5887, D. N.J.; 2015 U.S. Dist. LEXIS 81828).

Mealey's Litigation Procedure - Faxed Ads Class Suit Survives Summary Judgment Motion

TRENTON, N.J. - A New Jersey federal judge on June 19 denied a motion for summary judgment filed by the organizations responsible for sending faxed advertisements that allegedly violated the Telephone Consumer Protection Act (TCPA) (Physicians Healthsource, Inc., et al. v. Janssen Pharmaceuticals, Inc., et al., No. 12-2132, D. N.J.; 2015 U.S. Dist. LEXIS 79712).

Mealey's Toxic Tort/Environmental - Appeals Panel Finds New Jersey Agency Did Not Err When Renewing Permit

TRENTON, N.J. - A New Jersey Superior Court Appellate Division panel on June 23 ruled that the New Jersey Department of Environmental Protection (NJDEP) did not act arbitrarily or capriciously when granting RC Cape May Holdings LLC's application to renew its permit to operate a coal- and oil-powered steam electric-generating facility in June 2013, holding that U.S. Environmental Protection Agency regulations that would require the company to construct a new cooling tower were not implemented until 2014 (In re: New Jersey Pollutant Discharge Elimination System Permit Number NJ0000544 Final Consolidated Renewal Permit Action, No. A-5840-12T2, N.J. Super., App. Div.; 2015 N.J. Super. Unpub. LEXIS 1514).

Mealey's Litigation Procedure - Federal Judge Finds FDCPA Claim Is Time-Barred, Dismisses Case

NEWARK, N.J. - After finding that a claim for violation of the Fair Debt Collection Practices Act (FDCPA) was time-barred and that it lacked jurisdiction over Truth in Lending Act (TILA) claims, a New Jersey federal judge on June 22 granted a bank's motion to dismiss (Loretta Thomas, et al. v. Wells Fargo Bank, N.A., et al., No. 15-871, D. N.J.; 2015 U.S. Dist. LEXIS 80863).