The Supreme Court Upholds a Big Win for New Jersey Transit

New Jersey Transit Corp. v. Certain Underwriters at Lloyd’s London, ___ N.J. ___ (2021). As summarized here, this was an insurance coverage dispute arising out of Superstorm Sandy. New Jersey Transit sought coverage for damages up to the $400 million policy limit, rather than being limited to a $100 million sublimit in the policies. The Law Division, acting on cross-motions for summary judgment, held for New Jersey Transit. The Appellate Division affirmed in an opinion reported at 461 N.J. Super. 440 (App. Div. 2019).

The Supreme Court granted review, and today the Court unanimously affirmed the Appellate Division in a per curiam opinion. The Court “rel[ied] principally on the court’s analysis of the plain language of the relevant insurance policies.” The Appellate Division had also supported its decision by reference to Appleman’s Rule and the doctrine of contra proferentem, but the Supreme Court stated that its affirmance did not rely on those ideas.