In many of today’s commercial leases, the parties generally gloss over the insurance clauses considering them to be simply boiler plate or standard language. Generally speaking, little thought is given to the insurance clauses until in fact something bad happens. In a properly drafted Triple Net Lease, each party provides its own insurance to protect against events that will harm or interfere with a party’s business. In the recent matter of LIG Insurance Co., Ltd. v. Bonano Real Estate Group II, L.P., the Appellate Division upheld a ruling by the trial court that enforced the terms of the insurance clauses in the Lease as they were written.
In that matter, a first floor tenant suffered damage from a leaking bathroom on the second floor. After reimbursing its insured, the first floor tenant, Plaintiff the insurance carrier sued the Landlord on a claim of subrogation. Subrogation is a legal theory that permits the insurance company to step into the shoes of its insured after it has paid on the claim. The insurance company then has the standing of the aggrieved party. However, the lease properly provided for a waiver of claims between the Landlord and Tenant and required each party to obtain its own insurance. Based upon the properly drafted express terms of this Lease, the trial court dismissed the claims of the insurance company and the Appellate Division affirmed. Without such a clause the Landlord was exposed to a damage claim from the Tenant’s carrier.
Many Landlords typically use a lease that they have been using for many years without reviewing those terms and conditions on a regular basis. The case above described illustrates why a periodic lease checkup with your attorney is a good thing to protect against unintended losses and consequences of lease provisions that have not been kept up to date with the law.
Mark K. Follender is a Partner at Scarinci Hollenbeck and chair of the firm’s Real Property Tax Appeals Group, which represents private commercial property owners and municipalities throughout the State of New Jersey. Feel free to contact Mark Follender, if you would like to discuss your property tax appeal options or have questions about the article above.
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
