Joe Murphy

One of the potential coverage disputes that could arise from named storms and have been the subject of litigation, is sewer backup and the causal connection to flooding from the storm. A New Jersey federal court decision this summer (G.E.M.S. Partners LLC v. AmGUARD Ins. Co., — F.Supp. 3d —, No. CV 22-1664, 2024 WL 3568932 (D.N.J. July 29, 2024)) can shed some light on the importance of how flooding is defined in a policy and the application of a flood exclusion when it is related to a sewer backup claim. The insured in this case suffered property damage due to leakage from plumbing fixtures. Intense rainfall from Hurricane Ida overwhelmed the city's drainage system and the carrier took the position that the cause was flooding and therefore, the flood exclusion would apply, notwithstanding the affirmative grant of coverage for sewer backup. The court ruled in favor of the insured by distinguishing this case from another one involving a similar suit in which the insurer prevailed. The distinction lay in the definition of flood. One policy included "the accumulation of surface water, ... [or the] overflow of streams or other bodies of water" in the definition of flood whereas the other policy defined it as the "overflow of surface water, waves, tides, tidal waves, streams, or other bodies of water." Since the latter only defined it as an overflow of a body of water (and did not include accumulation of surface water), the court separated and distinguished it from an overflow of a sewer system. If an insured encounters a denial for sewer backup due to a flood exclusion, particularly in the most recent storms, it's good to be aware of some of the case law that could support an argument in favor of coverage.

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In our latest #FMG blog, Megan Gallagher covers a New Jersey appellate court decision on NJ residents' ability to sue municipalities for issuing contaminated public water. The ruling examines the relationship between government services and implied contracts, raising important questions about liability under the New Jersey Torts Claims Act. Click the link below to learn more. https://lnkd.in/epi5-qnz #FMGLaw #TortandCatastrophicLoss #NewJerseyLaw #NJ #TCA

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Opposition to #WrongfulDeath legislation a hot topic in today's POLITICO New York Playbook. https://lnkd.in/epBngprz. #Physicians, take action now to urge that any renewed legislation be balanced to address the extraordinary medical liability costs in #NewYork. https://p2a.co/FEYuad4

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Connecticut’s federal courts are experiencing a significant surge in labor and employment litigation, with a 60% increase in cases filed in July alone. High-profile cases involving allegations of sexual harassment and retaliation underscore the critical workplace challenges many are facing. As the legal landscape shifts, it’s more important than ever for employers and employees to stay informed. FLB Law is here to help clients navigate these complexities, offering guidance on mitigating risks and providing strong representation when litigation arises. Stay ahead—visit FLB Law's website for updates on new employment laws that could impact your business. #EmploymentLaw #ConnecticutLegal #WorkplaceCompliance

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