NJ Supreme: Statute Allows Construction Defect Claim; Arbitration Clause Applies

Source: https://www.claimsjournal.com/, July 19, 2022
By: Jim Sams

New Jersey’s Direct Action Statute allows a condominium association’s construction defects claims against an insurer, but the plaintiff must comply with a binding arbitration clause in the policies, the state Supreme Court ruled Monday.

The unanimous decision overturns rulings by both the trial court and the state Appellate Division. The high court found that the Direct Action Statute applies to the Crystal Point Condominium Association’s claims against Kinsale Insurance Co., while the Hudson County Superior Court had ruled that it did not. But the court also found that an arbitration provision in the policies applies, while the Appellate Division had determined it did not. Read more.

Find a Broker or Underwriter

Search by product, location or name

Please Update Your Browser

Unfortunately Microsoft is no longer providing support or security fixes for your web browser. RT Specialty values the safety and security of its clients’ data, and as such this site requires the use of a modern web browser. To update your web browser, please see the links below. If you have any questions or would like additional information, please email info@rtspecialty.com or call (312) 784-6001.

Firefox Firefox Chrome Chrome IE Internet Explorer Edge Microsoft Edge