99 Wall Dev. Inc. v. Allied World Specialty Ins. Co.

OPINION AND ORDER  This case involves a dispute over insurance benefits under a Commercial Inland Marine Policy (the “Policy”) issued by Defendant Allied World Specialty Insurance Company (“Allied”) to Plaintiff 99 Wall Development Inc. (99 Wall”) and Intervenor-Plaintiff T.G. Nickel & Associates, LLC (“TGNA”). TGNA has moved to amend its Intervenor Complaint.¹ For the reasons discussed below, the motion (See Doc No. 108) is granted. BACKGROUND99 Wall owns a building at 99-101 Wall Street. (IC6.) The building was a 29-story office building that has since been converted into residential condominiums. (IC8.) In February 2015, 99 Wall and TGNA entered into a construction management agreement pursuant to which TGNA agreed to manage the conversion of the office building into residential space and provide the necessary labor, material, equipment, and supervision (the “Project”). (IC7.)Construction on the Project started in December 2014 and continued through September 2017. (IC10.) Several problems occurred during the course of the Project. On July 29, 2016 and October 6, 2016, the building suffered water damage (collectively referred to as the “Water Losses”). (IC11.) In July, water caused damages to the building’s elevators. (IC13.) In October, water caused damage to various condominium units and common areas in the building. (IC15.) The water damage required extensive remediation and caused significant delays to the Project. (IC16.)99 Wall timely submitted claims to Allied for damages caused by the Water Losses. (FAC40.) 99 Wall alleges that Allied ignored its payment obligations and delayed paying benefits by asking for documents unnecessary for purposes of evaluating the insurance claim and documents already produced to it by 99 Wall. (FAC

41-45.) 99 Wall claims that Allied’s delay in paying benefits under the Policy had a substantial negative impact on the viability and profitability of the Project, including causing some condominium buyers to refuse to close on units and canceling their purchase agreements and causing 99 Wall losses in buyer concessions and discounts. (FAC