Stephen B. Genzer, Chair of the Utility Practice Group, filed an Amicus Curiae brief on behalf of the New Jersey Utilities Association in a case before the New Jersey Supreme Court involving whether insurers should continue to pay the bill when a utility stops providing services and policyholders suffer.
This article covers the case before the N.J. Supreme Court involving Franklin Mutual Insurance Company v. N.J. Central Power & Light Co. The insurer paid the claim filed by a food market for food spoiled after the power went out during Hurricane Floyd. After paying the claim, however, the insurer sued the utility company.
The Court relied on its 1987 decision in Weinberg v. Dinger, ruling that the "subrogation carve-out" of Weinberg should be held, and ruled in favor of the utility.