The Insurance Council of New Jersey and the New Jersey Civil Justice Institute had submitted amici curiae briefs stating that "a third-party beneficiary seeking to pursue claims under the Direct Action Statute is subject to all terms of the insurance policy that it seeks to enforce, including any arbitration provision." (Credit: Shutterstock)
After obtaining default judgments for construction defects against a structural engineering firm and a construction inspection company, a New Jersey condominium association may directly sue those companies' insurer, the New Jersey Supreme Court ruled.
At the same time, the court reversed the Appellate Division's holding that those claims need not be arbitrated in keeping with the policy terms.
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