Francis X. Manning
Partner
Experience
Fidelity National Insurance Company Wins Appeal in the Third Circuit
The U.S. Court of Appeals for the Third Circuit affirmed summary judgment in favor of Stradley Ronon client Fidelity National Indemnity Insurance Company in this case involving a flood insurance claim. The lawsuit was filed after the plaintiff collected $90,000 on his flood insurance policy from Fidelity National Insurance following Hurricane Sandy. Months later, the plaintiff claimed $230,000 in additional losses. Fidelity denied coverage for the additional claim and responded to the plaintiff with a “rejection of proof of loss” letter. The plaintiff filed suit for the additional amount months later, but voluntarily dismissed the claim just over a year after Fidelity sent the rejection letter. The plaintiff refiled his complaint two years after Fidelity’s rejection letter.
In their summary judgment motion, Stradley Ronon’s litigation team successfully argued that Fidelity’s rejection letter constituted a written denial of the claim, thereby barring the plaintiff’s suit under the Standard Flood Insurance Policy’s one-year statute of limitations. The plaintiff appealed to the Third Circuit, arguing that the clear language in the rejection letter was not a denial and did not trigger the statute of limitations.
At oral argument, Stradley Ronon reasoned that, by failing to file an amended proof of loss or exercise any of his additional options under the contract, the plaintiff’s own conduct made it clear that he considered the rejection letter to be a denial of the claim. The Third Circuit judge agreed that the suit was barred under the statute of limitations, concluding that a written rejection of a proof of loss constitutes a denial if the policyholder treats it as such by filing suit.
Francis X. ManningThe Standard Fire Insurance Company Extinguishes Appeal in 3rd Circuit
Stradley secured the dismissal of an appeal by Standard Fire’s co-defendant, Chernoff Diamond & Co. LLC, of a summary judgment entered in Standard Fire’s favor by the United States District Court for the District of New Jersey. The Third Circuit Court of Appeals agreed with Stradley’s argument that Chernoff did not have standing to assert the rights of Plaintiff simply because Chernoff no longer had Standard Fire to share in any potential exposure, and issued a brief opinion quoting the argument in Stradley’s brief and dismissing Chernoff’s appeal for lack of standing. This win is a positive development for “Write Your Own” flood insurance carriers in National Flood Insurance Program jurisprudence because the Third Circuit’s opinion bolsters the important concept that a WYO carrier’s liability to a policyholder is separate and distinct from that of an insurance agent.
Francis X. Manning“United” For Decades of Success
For more than two decades Stradley Ronon has served as UnitedHealth’s mid-Atlantic regional counsel, effectively and efficiently handling more than 400 cases and claims for UnitedHealth and its subsidiaries and affiliates throughout the mid-Atlantic region and in other states (e.g., Ohio, New York, Michigan and Florida). The majority of these cases are healthcare/ERISA litigation, and involve, ERISA benefit claims; non-ERISA claims; Medicare/Medicaid; provider disputes; prompt pay claims; stop loss claims; termination of contractual arrangements; coordination of benefits and care; third-party administration of benefits, life and disability benefit disputes; and counterclaims for fraud or overpayment. These cases range from single plaintiff claims to large, complex class actions.
Francis X. Manning, Brian P. Seaman and Samuel J. Arena Jr.
