CONSUMER PROTECTION
09-3-5116 Reeves v. Peak Development Corporation, Law Div. (Bergen County) (Polifroni, P.J. Cv.) (19 pp.) In this action arising out of a contract for home renovation, plaintiffs allege that defendant’s work contained multiple construction and structural deficiencies and they seek damages, counsel fees and costs for violations of the Consumer Fraud Act and the Contractor’s Registration Act. Defendant’s counterclaim seeks damages for breach of contract and unjust enrichment/quantum meruit. Defendant’s third-party complaint against Alexander’s Construction, the subcontractor it hired to do certain stucco, masonry and stonework, alleges Alexander failed to perform its work in a proper manor. Peak’s third-party claims against Essex Insurance, which insured Alexander, and Universal Financial Consultants, Alexander’s insurance broker, allege that Peak was to be named as an additional insured on Alexander’s policy and that Universal gave Peak a Certificate of Liability Insurance that listed Peak as an additional insured on Alexander’s Essex policy and that Peak relied upon Universal to take the steps necessary for Peak to be covered by said policy. Peak seeks a declaratory judgment that it is covered under the Essex policy and is entitled to a defense and indemnification. It also asserts a claim against Essex for breach of contract and against Universal for professional negligence. The court finds that Essex is entitled to summary judgment because there is no evidence that Peak was added as an insured on the subject policy and no evidence of apparent authority on the part of Universal to bind Essex, and further discovery will not provide any such evidence. Universal’s motion for summary judgment, based on its argument that no reasonable jury could find it proximately caused Peak’s alleged damages because Peak’s alleged conduct is not covered under the policy regardless of whether Universal added Peak as an additional insured, is denied without prejudice because discovery is not completed on whether Peak’s conduct is covered under the policy, causation and damages. [Filed August 19, 2014]
