Troisi and Jones Win Summary Judgment in NJ Property Insurance Coverage Case

Michael Troisi and Michael Jones won summary judgment in a suit filed by the owner of a commercial building. The court found that plaintiff’s suit, in which the owner sought insurance coverage under a property insurance policy issued by our client, was barred by the contractual suit limitation provision in the insurance policy. The insured was seeking coverage in connection with a loss allegedly due to a prior tenant’s use of corrosive chemicals in its manufacturing operations that damaged the sprinkler system and roof beams above the ceiling.

We argued that the suit was barred by the contractual suit limitation provision because the suit was filed after the time allowed. The insured argued that New Jersey’s discovery rule should apply to toll the contractual suit limitation period until the insured discovered the loss. The insured alleged that it did not discover the loss until approximately three years after the tenant had vacated the premises because the damage to the property was hidden.

We successfully argued to the court that New Jersey’s discovery rule only applies to toll statute of limitations and that applying it to the contractual suit limitation provision would circumvent the clear and unambiguous language agreed to in the policy. Accepting our arguments, the court granted summary judgment in favor of our client.