Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: April 30, 2015
The Firm
201-896-4100 info@sh-law.comIn Torre v. Liberty Mutual Fire Insurance Company, the appeals court held that New Jersey homeowners were not entitled to reimbursement for the costs associated with removing non-owned debris that accumulated in their yard during Hurricane Sandy.
Michael and Geraldine Torre (collectively, the Torres) held a Standard Flood Insurance Policy (“SFIP”) issued by Liberty Mutual Fire Insurance Company (Liberty) under the National Flood Insurance Act of 1968. After sustaining significant damage from Hurricane Sandy, the Torres submitted claims under the SFIP.
The Hurricane Sandy insurance dispute concerns whether the policy covers the cost of removing storm-generated debris not owned by the Torres from portions of their land. Liberty paid the Torres a total of $235,751.68, which included the cost of removing debris from their house. However, the insurance company denied a second claim related to the cost of removing sand and other debris deposited on the property around their house. According to the Liberty, such damage was not covered under the insurance policy.
The SFIP’s debris-removal provision states that “[w]e will pay the expense to remove non-owned debris that is on or in insured property and debris of insured property anywhere.” The parties disagree on the meaning of the term “insured property.” The Torres argued that “insured property” means not only the specific structures and items of property that are insured by the SFIP (such as their house) but their entire parcel of land. Meanwhile, Liberty maintained that “insured property” means only the property insured under the SFIP, and that the SFIP does not cover land.
The Third Circuit upheld the district court’s decision
In reaching its decision, the Third Circuit panel focused on the language of the SFIP. As explained by the court:
In sum, the SFIP provides coverage for certain structures and other items of property but not for an entire parcel of land. The entire parcel of land thus cannot constitute “insured property” because it is not insured by the SFIP at all. And because the entire parcel of land does not constitute “insured property,” the provision of the SFIP requiring Liberty to pay for the removal of non-owned debris that is “on or in insured property” does not apply to the expenses the Torres incurred in removing non-owned debris from their land outside their home.
The court rejected all of the Torres’ arguments to the contrary. It disagreed that the term “property” should be given its ordinary meaning, which they argued includes land. The Third Circuit also rejected the argument that term “insured property” refers to the Torres’ land because that is the property listed on the Declarations Page and thus is the “property” that is insured.
From a policyholder’s perspective, the Third Circuit’s decision appears to be hyper-technical and clearly in error. It is only the first circuit to interpret the term “insured property” this way.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!