May 7, 2018

Panel: Expert not required in Sandy insurance lawsuit

A two-judge panel of the Superior Court of New Jersey Appellate Division held that an affidavit of merit was not required in a lawsuit against an insurance producer when the claim involved a matter of common knowledge.

In the case of Linda Francese and Rocco R. Giordano (Francese) v. Conover Beyer Associates (CBA) Inc. et al., CBA sold a flood policy to Francese. Francese alleged that CBA repeatedly made claims that the flood insurance policy she purchased contained contents coverage for the first floor of her home. Francese’s home was subsequently damaged during Superstorm Sandy, including personal property located on the ground flood. Shortly after sustaining the damage, Francese was informed that her flood policy did not provide coverage for contents on the first floor of the home.

Francese brought a suit alleging breach of contract and related causes of action for damage to the home after Sandy. However, Francese failed to file an affidavit of merit. An AOM is required in cases of professional malpractice against producers in New Jersey. The AOM must be from a licensed insurance professional and state that the alleged conduct of the insurance producer deviated from professional standards.

The court in this case held that an AOM was not necessary as the issue in question was one of common knowledge, whether CBA had told Francese that the flood insurance policy they purchased contained contents coverage for the ground floor of the home. It was not one that required advanced or expert knowledge of the insurance industry. As such, a jury would be capable of deciding whether CBA did or did not make such a representation.