Oct 2, 2015

Firm Wins Summary Judgment in NJ Construction Defect Coverage Action

Recently, the Firm obtained summary judgment defeating efforts by a NJ condominium and developer for insurance coverage relating to claims of property damage caused by defective construction. Falcon Ridge Condominium Association v. Silver Fox, LLC, Docket No. L-860-2011 (Superior Court of New Jersey, Sussex County). Our client, Mt. Hawley Insurance Company, issued a commercial general liability policy to Silver Fox, who brought a third-party action seeking defense and indemnification. Falcon Ridge, the underlying claimant, moved for sumamry judgment seeking a declaration that Mt. Hawley owed a duty to defend Silver Fox in the underlying action. We cross-moved on behalf of Mt. Hawley against Silver Fox for a declaration of no coverage. The Court denied Falcon Ridge’s motion and granted Mt. Hawley’s motion for summary judgment declaring that Mt. Hawley does not owe coverage for the underlying claims. Citing the New Jersey Supreme Court’s decision in Weedo v. Stone-E-Brick, 81 N.J. 233 (1979). The Court accepted our arguments that all of the alleged property damage arose out of Silver Fox’s “work” as the developer, and therefore coverage was barred under the terms of the policy.

By, Joseph D’Ambrosio