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NJ Court Reaffirms Rule Against Coverage for Faulty Workmanship Claims and Finds Fraud Claims Inherently Intentional

Awarding summary judgment to an insurer under both liability and directors & officers (D&O) coverage parts, a New Jersey trial court reaffirmed the principle that claims of defective workmanship without resulting ‘property damage’ are not covered under a general liability policy, and further dismissed claims for fraud and breach of fiduciary duty, finding that such claims were inherently intentional and do not state a covered ‘occurrence.’
August 16, 2021 Liability Litigation New Jersey









Insurers Ordered To Pay Policy Limits Of $400M For Superstorm Sandy Flood Claim

The New Jersey Supreme Court has ordered several insurance companies to pay the amount owed to a public transportation agency related to trains damaged during Hurricane Sandy in 2012.<br /><br />The insurers are on the hook for about $300 million in payments, to cover for the remaining amount owed to the train operator.<br /><br />NJ Transit, the operator of the trains, had parked 343 locomotives and rail cars from its Meadowlands Maintenance Complex in Kearny prior to Sandy hitting the region. During a previous court proceeding, the agency had argued that the facility had not flooded in the past, hence it left the trains there.