Daily Archive for December 26th, 2014
In Continental Casualty Co. v. Hochschild, an insured sought coverage for damage to his boat, and the insurer claimed that no coverage was due because of misrepresentations in the insurance application. The Appellate Division found that the policy was to be voided on the basis of equitable fraud, and affirmed the trial court’s decision to void the policy solely on that basis.
It vacated the trial court’s finding that the insured violated New Jersey’s Insurance Fraud Prevention Act (IFPA), because a trial was required to address the factual issues concerning that claim. The appellate court was specifically concerned about the “stringent state-of-mind requirements that an insurer must prove to obtain affirmative relief under the IFPA”, and directed that the trial “shall focus on whether the insured ‘knowingly’ made false or misleading statements to the insurer, as required by” the IFPA.
Date of Decision: November 20, 2014
Cont’l Cas. Co. v. Hochschild, DOCKET NO. A-2267-13T1, SUPERIOR COURT OF NEW JERSEY, 2014 N.J. Super. Unpub. LEXIS 2753 (App. Div. September 22, 2014) (Sabatino and Guadagno, JJ.)
In Federal Insurance company v. Von Windherburg-Cordeiro, the insurer had denied a disability claim. The insured pursued the matter in a AAA arbitration, where the insurer counterclaimed for fraud. The insurer successfully defeated the insured’s affirmative claims, and prevailed on its counterclaim, and was awarded attorney’s fees. The arbitrator had concluded that the insured’s injuries were largely or entirely feigned.
The insurer then brought a claim in federal court for violation of the IFPA. The court rendered judgment on the pleadings in the insurer’s favor.
Date of Decision: November 24, 2014
Federal Insurance Co. v. Von Windherburg-Cordeiro, Civil Action No. 12-2491 (JAP), 2014 U.S. Dist. LEXIS 163828 (D.N.J. November 24, 2014) (Pisano, J.)
