One should always be aware of contractually shortened statute of limitation provisions in insurance contracts, as was highlighted in the recent case of Chandler Management Corp. v. First Specialty Insurance (Sup. Ct. N.Y. Co. Docket No. 509677/15).
In this case, Chandler purchased insurance coverage for an apartment complex it owned in Dallas, Texas. The policy specifically stated that the parties submitted to the exclusive jurisdiction of the New York courts, and that the laws of the State of New York would govern. More importantly, the policy stated that any lawsuits regarding coverage must be commenced within twelve months of the date of the physical loss or damage.
According to Chandler, its apartment sustained roof damage on or about May 24, 2011. On June 25, 2012 it commenced a lawsuit in the District Court of Dallas, Texas, apparently unaware of the above noted provisions. The case was dismissed by the trial level court because of the New York forum selection clause and this holding was affirmed on appeal.