Liberty Mutual Insurance v. President Container, Inc.

The opinion of the court was delivered by

KEEFE, J.A.D.

On an issue of first impression in New Jersey, Law Division Judge Peter E. Doyne held: “once the insurer [under a retrospective premium policy] has shown or there is no dispute that it in *26fact has paid settlements, the burden shifts to the insured to make some showing of the carrier’s negligence in its claim handling.” Because Judge Doyne found that “defendant has failed in discovery and at trial to identify any instance of unreasonableness with which to cast sufficient doubt upon Liberty’s claim handling,” he awarded plaintiff Liberty…