Hill Rivkins Prevails in Untimely Action on Cargo Policy
June 28, 2011
Hill Rivkins’ New York office obtained a dismissal of an action commenced by Franco Apparel against National Liability & Fire Insurance Company, on the basis that the action was barred by the applicable contractual limitations period. The action sought damages arising out of a breach of an insurance contract. Anthony J. Pruzinsky and Lauren E. Komsa successfully argued that the action was time barred, based upon a provision in the cargo policy that required actions on the policy to be commenced, “within one year from the date of the happening of the loss out of which the said claim arose.” Relying upon the Second Circuit’s recent opinion in Fabozzi v. Lexington Ins. Co., 601 F.3d 88, 90-91 (2d Cir. 2010), District Judge Richard Sullivan of the Southern District of New York found that the policy language was sufficiently precise, and concluded that Franco Apparel, having failed to commence its action within one year from the date of loss, was barred from suing its insurer. Franco Apparel, Inc. v. National Fire Ins. Co., 10 Civ. 8205 (RJS), 2011 WL 2565287 (S.D.N.Y. 2011).