November 27, 2019

Fishkin Lucks Obtains Dismissal of Coverage Action in the District of New Jersey

The United States District Court for the District of New Jersey (Arleo, J.) granted today the Firm’s motion to dismiss on behalf of its insurance carrier client. The case arose out of a premium dispute between the insured, a trade subcontractor, and different carrier,which issued the insured workers compensation insurance. That other carrier brought suit against the insured, alleging to be owed $1.4M in premiums. The insured argued in defense that the other carrier was improperly taking into account payroll for which workers’ compensation insurance was provided under an Owner Controlled Insurance Program (“OCIP”).  The insured filed a third-party complaint against the Firm’s client, an alleged OCIP carrier,claiming that the Firm’s client failed to report that payroll.  The District Court determined that the insured’s pleading failed both to state a cause of action against the Firm’s client or “specify what rights the Court must determine between the parties.”