The plaintiffs’ house burned down while it was being built in 2012. They made a claim to their insurer under their home owners’ policy, which settled in 2013 for an amount less than the policy limit. They were allegedly advised by their insurer at the settlement meeting that they could sue their broker for negligence to recover further amounts. They signed a final release at that time. On the two year anniversary of the claim settlement, the plaintiffs commenced this action against their insurer and its outside lawyers, for negligent misrepresentation they alleged occurred during the settlement meeting. Their insurer brought a motion for summary judgment on the basis that the final release was a complete bar to the action and that the two-year limitation period started on the day of the fire and therefore the claim was not brought in time. Justice Lococo dismissed the motion, holding that there were triable issues that could not be decided on summary judgment. Regarding the release, he held that the insurer ought to have put forth affidavit evidence from each claims advisor that was present at the subject settlement meeting. Regarding the limitation period, he held that the claim was for negligent misrepresentation by the insurer at the settlement meeting, not the fire, and that the claim was brought within two years of that action arising.
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