$119,922

Additional Notes

Attorneys represent Continental Casualty Company and its Marine Manager, Boat US in an insurance fraud matter in Monmouth County, New Jersey captioned Continental Casualty Company v Gary M. Hochschild, consolidated with Gary M. Hochschild v Boat Owners Association of the United States d/b/a Boat U.S. and Continental Casualty Company Docket No. MON-L-5910-09. Judge Joseph P. Quinn sitting in Monmouth County, in a series of opinions and Orders on March 26, 2013 and May 9, 2013, found that the policyholder made material factual misrepresentations in his application for insurance by misrepresenting the purchase price, damage history, claim history, and insurance coverage history when he applied for coverage on a 42’ Uniflite Double Cabin Yacht subsequently destroyed by fire while docked near the policyholder’s home. As a result of these material misrepresentations, Judge Quinn agreed that Continental Casualty was entitled to rescind the policy from its inception under the terms of the insurance contract, the doctrine of equitable fraud, and the admiralty doctrine of uberrimae fidei. In addition, Judge Quinn found that for the same reasons that rescission was appropriate the policyholder’s conduct violated New Jersey’s Insurance Fraud Prevention Act, N.J.S.A. 17:33A-1, and ordered the policyholder to pay compensatory damages to Continental Casualty in the amount of $119,992 for the expenses and attorneys’ fees incurred in investigating and litigating the claim. The policyholder is seeking appellate review.