Soil Erosion from Post-Hurricane Pipe Collapse Triggered Anti-Sequential Clause, N.J. Court Affirms

TRENTON, N.J. — A New Jersey trial court correctly applied an insurance policy’s anti-sequential clause to bar coverage for a building that partially collapsed above an underground pipe that burst after Hurricane Irene, an appellate panel has held.

In a Jan. 20 decision affirming summary judgment for Tower National Insurance Co., the New Jersey Superior Court, Appellate Division, held that because the cause of the collapse was due in part to soil erosion from the damaged pipe, coverage was excluded based on the policy terms.

The plaintiffs, Ashrit Realty LLC and Bhavika Realty LLC, owned a gas station and convenience …