Kevin Wolff and Tim Smith recently obtained an affirmance of a grant of summary judgment in favor of their client, an insurance company, in an indemnification action. Another insurer sued KLRW’s client, claiming that KLRW’s client had a duty to contribute to the defense and indemnification of the claimant’s insured in an underlying bodily-injury action. The claimant sought to recover the sums that it incurred to defend the insured and to settle the bodily-injury action.

Kevin Wolff won summary judgment for the client in the Law Division on the ground that the claim was time-barred. The motion court accepted the argument that the indemnity claim was not tolled while the settlement of the underlying bodily-injury action was finalized. The claimant appealed, and Tim Smith argued the appeal for KLRW’s client. The Appellate Division agreed with KLRW that the statute of limitations was not tolled. It therefore affirmed the grant of summary judgment, and ruled that KLRW’s client was not liable to the claimant for reimbursement of any defense costs or settlement payments.

If you have any questions about this matter or recovery of defense and indemnity costs in general, please contact Kevin Wolff or Tim Smith.