Partner Bob Cosgrove and associate Eric Clendening obtained additional insured coverage and recovered $700,000 in the Superior Court of New Jersey, Ocean County, in the case of Nautilus Insurance Company v. National Fire Insurance Company of Hartford.

The case arose out of a denial of coverage by National Fire Insurance Company of Hartford (“CNA”) in a construction accident case entitled Andrei Savon and Donna Savon v. Trinity Construction, Inc., JDB Equipment Company, Inc., Skyjack Equipment, Inc., Linamar USA, Inc. and Sexton’s Equipment Rental, Inc. In that case, CNA’s insured Trinity Construction, Inc (“Trinity”) leased equipment from Nautilus’ insured JDB Equipment Company, Inc. (“JDB”). The lease required Trinity to procure additional insurance coverage for JDB for claims arising out of the use of the equipment. While using the equipment, Andrei Savon, suffered significant injuries. When Nautilus tendered JDB’s defense and indemnity CNA, CNA refused to accept the tender. The case was thereafter settled for $1,700,000 and Nautilus sought to recover $700,000.

Judge E. David Millard held that, as Nautilus had contended all along, JDB was in fact an additional insured under the CNA Policy issued to Trinity. The Court therefore ordered CNA to reimburse Nautilus $700,000.