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.