RECENT INSURANCE & PROPERTY DAMAGE CLAIM CASES OF INTEREST

Eight Ave v. Tower - Following a major fire and an insurance claim, client filed suit for property damages attributed to the fire, and for which the insurance company denied liability. The attorneys at Greenblatt & Agulnick, P.C. pursued a claim for breach of contract and bad faith against the insurance carrier. With the assistance of expert testimony, the unpaid portion of the insurance claim and the lawsuit was settled prior to significant discovery for $225,000.00.

M. v. Allstate - Following the collapse of a portion of ceiling in the insured’s home, Allstate denied the claim by alleging that the loss was caused by faulty design and workmanship. While true that the deterioration was due to faulty design of the basement floor joist components, Allstate disregarded the coverage for collapse due to hidden deterioration. Furthermore, upon initially inspecting the loss, the claim representative negligently instructed the insured to immediately tear down the remainder of the collapsed ceiling, failing to properly advise that mold containment was necessary to prevent further damage. As a result of the removal of the remainder of the ceiling without mold containment, mold was spread throughout, requiring complete demolition of the basement. Lawsuit was commenced based upon breach of contract and negligence against the insurance carrier. Case settled prior to trial for approximately $75,000.00.

Die Corp v. Landlord - In a commercial building, a sprinkler head froze and broke due to the failure to maintain heat in one of the units located directly above the client. An insurance claim was submitted by the client and the client received payment up to the limits of its policy. A lawsuit was commenced to recover the excess damages above the insurance policy limits. A suit was commenced against the l the tenant (who was uninsured and since went out of business) landlord for breach of contract and negligent contracting and. Following depositions, the lawsuit was settled for $50,000.00 with the landlord’s insurance carrier.

Restaurant Corp. v. Brokerage - Client sustained a major fire at a well known Manhattan restaurant. While the property damage claim was being adjusted, it was discovered that the client’s insurance broker failed to procure the coverage that was requested for business interruption coverage, and a large coinsurance penalty was assessed. A claim was filed against the insurance broker’s Errors & Omissions carrier by the attorneys at Greenblatt & Agulnick, P.C. The “failure to procure” claim was settled prior to suit for $60,000.00.

Nunez v. US Underwriters - After a fire broke out in a unit above a retail store, the store sustained damages from water used by the FDNY. The insurance company denied the claim based upon the store's alleged failure to have a smoke detector, as was required by the Protective Safeguard provision of their insurance policy. Greenblatt & Agulnick, P.C. argued that the failure was immaterial to the loss and there was no increased risk as a matter of law. The Court agreed. Case settled prior to depositions for $55,000.00.
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Kwon v. Tower - Following a severe windstorm, the roof of the insured's commercial building sustained damage which resulted in water damage to the interior. The insured's claim was denied based upon no alleged evidence of windstorm damage. After being retained, Greenblatt & Agulnick, PC successfully reopened the claim and through the use of photographic evidence and expert reports settled the claim prior to litigation for $155,000.00.

Step by Step Center v. Pool Company & Philadelphia Insurance - Immediately follow the start up of a new swimming pool filtration system at a school facility a Muriatic acid leak occurred which was not immediately addressed by the pool company, despite numerous complaints of acid smell. The acid quickly corroded A/C and HVAC systems, along with electrical components. Insurer denied the claim citing pollutant exclusions. Litigation commenced against the pool company for product liability and negligence and against the insurer for breach of contract. Case settled with both defendants following the completion of discovery for $200,000.00.

Hert v. Castlepoint Insurance Company - After the insurance company denied payment for a major fire claim on the basis of the assertion that the insured property was a 5 family home rather than a 4 family home, Greenblatt & Agulnick, P.C. was hired to pursue the claim.  The insurance company was contacted regarding the denied claim and a letter brief on the subject of the property's actual usage and containing relevant caselaw was submitted to the Claims Department.  The insurance company actually reversed its decision prior to the initiation of a lawsuit.  Claim settled for $82,000.00

E.R. v. Hudson  - Lawsuit was commenced against defendant landlord as a result of Plaintiff's goods being stolen from a loading dock.  The Plaintiff did not have their own insurance on the property.  A case was made against on the theory that a bailment existed for the benefit of the landlord.  Significant investigation was undertaken by Greenblatt & Agulnick, P.C. to establish negligence on the part of the complex security and an alleged coverup by the defendant.  Case settled early in litigation for $75,000.00