A Delaware court upheld a two year time-bar in relation to a property damage insurance claim arising from Superstorm Sandy because the action was instituted more than two years after the 2012 event and after coverage was denied by the insurer in 2013.
The limitations clause provided that ‘no suit, action or proceeding for the recovery of any claim under this policy shall be sustainable in any court of law or equity … unless the same be commenced within twenty four (24) months next after the date of the loss’.
The court found that the language was unambiguous and that Delaware courts have in the past upheld shortened limitation periods including a one year limitation. The court found that the two year time limit for suits against the insurer was unambiguous and valid. The court also held that the clause was not repugnant to Delaware public policy seeing the courts had allowed shorter limitation periods in the past.
[The case is Bedrock Leasing Corp. v Lexington Insurance Company]