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New Jersey Appellate Division Enforces Waiver Of Subrogation Clause In Favor Of Uninsured .

January 19, 2009

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In Skulskie v. Ceponis, et al, A-2397-07T1, the Court held that the waiver of subrogation provision in a homeowners insurance policy purchased by a condominium unit owner bars a subrogation recovery against another unit owner, even if uninsured. The carrier argued that enforcing the waiver of subrogation provision against an uninsured party was contrary to the purpose of the provision and created an unintended inequity. The Appellate Division affirmed summary judgment to the uninsured unit owner finding that the carrier that issued the policy with the waiver of subrogation clause had no expectation that it would be able to recover from another negligent unit owner, insured or not.
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