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Insured's Consent by Silence Ruled Sufficient

Century Waste alleged that a deficient reservation of rights letter had prejudiced their case in an underlying lawsuit.

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A New Jersey appellate court affirmed a decision that an insured’s assent by silence was sufficient to consent to an insurer’s choice of counsel in a lawsuit. The case is United Specialty Ins. Co. v. Century Waste Servs., LLC, 2023 N.J. Super. Unpub. LEXIS 2097 (N.J. Super. Ct. App. Div. 2023). Please note that this decision is unpublished and therefore has limited precedential value. 

A manager for Century Waste Services (Century) allowed an employee to use a car owned by the manager’s mother to go on a work-related errand. The employee was involved in an auto accident. The passengers of the other vehicle sued Century, the employee, and the borrowed vehicle’s owner for injuries suffered in the collision. 

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