When talking about breach of contract claims, it’s important to understand that the contracts involved can be for small amounts or for massive amounts. They can also be between commercial entities or individuals. In terms of the former type, a recent New Jersey example of breach of contract claims is between Toys “R” Us and an insurance carrier.
Toys “R” Us is alleging that their insurance company, which has its headquarters in another eastern seaboard state, refused to pay the appropriate amount in a wrongful death suit. The suit was based on a fatal accident that occurred when a woman was killed in 2006. A pool that was purchased from Toys “R” Us had partially collapsed, causing the woman to break her neck after going down the slide. Now, the insurance carrier for the retail giant will not pay the liability.
The amount being sought is almost $25 million, which covers the $20.6 million that Toys “R” Us was ordered to pay the woman’s family for punitive damages, lost wages, and pain and suffering. The retailer’s current lawsuit against its insurance company alleges that it is the responsibility of the insurance carrier to reimburse them for the amount. The insurance carrier has responded that it is not responsible for this particular type of liability because of where the product had been manufactured.
At this point, neither side is revealing any more information to the media, nor will they comment on pending cases. This is not unusual, especially with cases involving large corporations. As with all breach of contract claims, there will be a thorough review of all documentation before the New Jersey court makes its determination.
Source: northjersey.com, Toys “R” Us suing insurer in pool slide death case, Joan Verdon Staff, Nov. 9, 2013