Tom Thomas Organization, Inc. v. Reliance Insurance

This lawsuit involves a claim for payment under the provisions of an insurance contract. The Court of Appeals has held the insured’s (Tom Thomas) suit against the insurer (Reliance) is barred by a contractual limitation. We agree.

Tom Thomas, a producer of motion pictures, entered into an insurance contract with Reliance which contained the following clause:

”7. Suit: 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 twelve (12) months next after discovery by the Insured of the…