Sullivan and Graber Prevails in Appellate Division

Sullivan and Graber associate Rafael A. Llano successfully defended an appeal, which sought reversal of an order granting summary judgment to the firm's client. In the matter of Thomas v. Allstate New Jersey Insurance Company, the plaintiff filed a lawsuit seeking insurance coverage for her personal property that was damaged when a fire destroyed the insured house. She had lived in the house with a friend from 1984 to 2003. The friend was the only named insured on the homeowners’ policy. When the friend moved out of the house, the plaintiff remained and continued to pay policy premiums. However, she never contacted the insurer to have her name added to the policy.

The trial court granted Mr. Llano's motion for summary judgment, finding that the plaintiff was not entitled to insurance benefits because she was neither a named insured nor a resident relative. The court also found that plaintiff's cause of action was barred by the insurance policy's one year limitation on lawsuit provision.

On appeal, the plaintiff argued that the policy should be reformed because the insurance company accepted her premium payments. The Appellate Division rejected this argument, finding that plaintiff's negligence in failing to obtain proper coverage precluded reformation. Further, the court did not find any authority supporting plaintiff's argument that it was inequitable for the insurer to accept premium payments without checking whether plaintiff was an insured under the policy. (Click here for the full decision).