HAKIM INTERNATIONAL TRADING v. THE STANDARD FIRE INSURANCE COMPANY

CourtDistrict Court, D. New Jersey
DecidedNovember 30, 2021
Docket2:17-cv-02874
StatusUnknown

This text of HAKIM INTERNATIONAL TRADING v. THE STANDARD FIRE INSURANCE COMPANY (HAKIM INTERNATIONAL TRADING v. THE STANDARD FIRE INSURANCE COMPANY) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HAKIM INTERNATIONAL TRADING v. THE STANDARD FIRE INSURANCE COMPANY, (D.N.J. 2021).

Opinion

NOT FOR PUBLICATION UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY . HAKIM INTERNATIONAL TRADING, Civil Action No.: 17-cv-02874 ET AL., Plaintiffs, ! OPINION : THE STANDARD FIRE INSURANCE CO., TRAVELERS, OSHIN GROUP, ! LLC, LAWRENCE F, OSHINSKY, AND ABC CORP., Defendants, ! CECCHLI, District Judge. L INTRODUCTION This matter comes before the Court on the motions to dismiss plaintiffs Hakim International Trading and Hakim International Enterprises’ (“Platntiffs”) First Amended Complaint (ECF No. 35, “FAC”) filed by defendants Oshin Group, LLC and Lawrence F. Oshinsky (““Oshinsky Defendants”) (ECF No. 39) and The Standard Fire Insurance Company (“Standard Fire”) (ECF No. 40)! (collectively, “Defendants”) pursuant to Federal Rule of Civil Procedure 12(b)(6). Plaintiffs opposed Defendants’ motions (ECF Nos, 41, 43), and Defendants replied (ECF Nos. 42, 44). The Court has considered the submissions made in support of and in

' Should the Court determine that it cannot consider the documents attached to and cited in the FAC, Standard Fire requests that the Court treat its motion as a motion for summary judgment pursuant to Federal Rule of Civil Procedure 56. ECF No. 40-9 at 9-10. However, as the documents attached to and cited in the FAC are “integral to or explicitly relied upon in the complaint , . . [they] may be considered without converting the motion to dismiss into one for summary judgment.” Boisvert v. State Farm Fire & Cas. Co., No. 14-5760, 2015 WL 5771797, at *2 (D.N.J. Sept. 29, 2015) (citations omitted),

opposition to the motions and decides this matter without oral argument pursuant to Federal Rule of Civil Procedure 78(b). For the reasons set forth below, Standard Fire’s motion to dismiss (ECF No. 40) is granted and the Court dismisses the Oshinsky Defendants from this case due a lack of subject matter jurisdiction. Ik. BACKGROUND

a. Factual Background Plaintiffs’ claims arise out of allegations that Standard Fire, Plaintiffs’ insurer, wrongfully denied Plaintiffs’ claims under its Standard Flood Insurance Policy (the “SFIP”) in connection with flood damage incurred at Plaintiffs’ property. Plaintiffs further claim that the Oshinsky Defendants, Plaintiffs’ independent adjusters, breached their duties owed to Plaintiffs concerning their attempt to aid Plaintiffs in recovering such insurance funds under the SFIP. Standard Fire issued the SFIP to Plaintiffs on October 13, 2013, for the property located at 533 Whiteheads Road, Hamilton, New Jersey (the “Property”). FAC at 411. The SFIP provides contents coverage of $500,000 per loss and $500,000 building damage per loss, with a $25,000 deductible. Jd at § 12. The SFIP also provides that any claims brought by Plaintiff against Standard Fire concerning a disputed denial of coverage under the SFIP must be filed within one year of the date that Standard Fire issues the denial of coverage at issue. /d. at 914. As SFIPs are regulated by the Federal Emergency Management Agency (“FEMA”), only FEMA, and not Plaintiffs or Standard Fire, may waive any provision within the SFIP, including this statute of limitations provision. See Suopys vy, Omaha Prop. & Cas., 404 F.3d 805, 807 (3d Cir. 2005) (citing 44 CFR. Pt. 61, App. (A)(1), Art. VIICD)). On May 1, 2014, while the SFIP was in effect, the Property was flooded by overflow from an adjacent creek. FAC at { 16. The next day, Plaintiffs allege that they notified Standard Fire of

ry

the flood and the consequent damage to the Property. Jd at 19. Plaintiffs estimate that the Property sustained building damages of over $250,000 and contents damage of over $4,000,0000—in excess of the SFIP’s $500,000 limit. Jd. at $4] 20-21. Two weeks later, Plaintiffs retained the services of the Oshinsky Defendants under a wiitten contract (the “Services Contract”)—-wholly separate from the SFIP contract—in which the Oshinsky Defendants agreed to act as Plaintiffs’ adjuster in connection with any insurance claims made under the SFIP. id. at § 22-24. (citing ECF No. 30-2, Ex. B (Plaintiffs’ contract with the Oshinsky Defendants)). Under the Services Contract, for example, the Oshinsky Defendants agreed to review Plaintiffs’ insurance coverage and assist Plaintiffs in complying with the SFIP’s terms and conditions, Jd. Thereafter, following Plaintiffs’ submission of claims under the SFIP, Standard Fire submitted a partial building damage payment to Plaintiffs in the amount of $79,964.57 on October 20, 2015. fd. at 7 34. In this same correspondence, however, as well as in a previous June 23, 2014 correspondence, Standard Fire denied Plaintiffs’ other claims for flood damage on the grounds that Plaintiffs “have not cooperated in [Standard Fire’s] investigation of the claim.” Jd. at { 35 (citing ECF No. 30-2, Ex. C (Standard Fire’s “denial letter” issued to Plaintiffs on October 20, 2015)). Plaintiffs allege that the Oshinsky Defendants’ carelessness in assisting with their claims submissions contributed to these denials. fd. at { 66. In the subsequent months, as Plaintiffs appealed Standard Fire’s denials of their claims, further negotiations ensued between the parties, id, at [§ 37-48. For instance, Plaintiffs allege that, following a re-inspection of the Property by Standard Fire’s independent adjuster, Plaintiffs submitted a proof of loss with Standard Fire regarding its “contents claim” on March 11, 2016. Jd. Nevertheless, Plaintiffs allege that on May 6, 2016, Standard Fire rejected Plaintiffs’ proof of loss

pending further review “of the current damages, prior loss damages and documentation submitted.” Jd (citing ECF No. 30-2, Ex. E (Standard Fire letter to Plaintiffs)). Then, on May 11, 2016, FEMA wrote a letter to Plaintiffs’ representative in which FEMA acknowledged that Standard Fire continued to review its previous denials of coverage under the SFIP. ECF No 30, Ex. I. Specifically, in this letter, while FEMA did not expressly set aside Standard Fire’s previous denials of coverage or waive any of the SFIP’s terms and conditions, FEMA nonetheiess recommended that Standard Fire pay Plaintiffs “all undisputed amounts of the loss” and invited Plaintiffs to submit a written appeal to FEMA in the event that Standard Fire refused to reverse course, Jd. Ultimately, on June 27, 2016, Standard Fire issued a letter to Plaintiffs “re-affirming” its previous denials of coverage under the SFIP concerning the flood damage. /d. at 7 46 (citing ECF No, 30-2, Ex. J (Standard Fire letter to Plaintiffs)). Plaintiffs then appealed this decision to FEMA, which FEMA denied on January 17, 2017, finding that Plaintiffs’ submissions to Standard Fire in connection with its claims under the SFIP were “less than professional” and contained “inadequate documentation,” /d. at 7 48 (citing ECF No. 30-2, Ex. F (FEMA appeal denial)), Plaintiffs allege that FEMA’s findings indicate that the Oshinsky Defendants failed to adhere to its obligations under the Services Contract, Td, at {9 59-81. b. Procedural Background Plaintiffs filed this action against Defendants in New Jersey Superior Court, Bergen County, on February 27, 2017-~more than one year following Standard Fire’s initial denials of Plaintiffs’ claims under the SFIP. ECF No. 1. Defendants then removed this action to this Court pursuant to 28 U.S.C. § 1441, alleging that jurisdiction was proper under 42 U.S.C. § 4072

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HAKIM INTERNATIONAL TRADING v. THE STANDARD FIRE INSURANCE COMPANY, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hakim-international-trading-v-the-standard-fire-insurance-company-njd-2021.