The opinion of the court was delivered by: Simandle, District Judge
This matter is before the Court on the motion for partial summary judgment by Defendant CNA Insurance Companies, doing business as Transportation Insurance Company ("CNA" or "Defendant") for partial summary judgment. For the following reasons, the Court shall deny the motion for partial summary judgment:
1. Defendant seeks to preclude Plaintiff (Kristopher Kolea and John Kolea, Jr., a New Jersey partnership trading as K-Wood, LP) from recovering on an insurance policy for damage to the insured structure, which was located at 347 South Broad Street, Woodbury, New Jersey ("the subject property"). Defendant does not seek to preclude Plaintiffs' claim for lost rents.
2. The issue is whether the policy on the subject property, which Plaintiff still owned at the time of the alleged damage, permits Plaintiff to recover on the policy, despite a lucrative sale and a lack of diminution in any market value of the property.
3. This Court has subject matter jurisdiction over this contract dispute pursuant to 28 U.S.C. § 1332. Plaintiff Kristopher Kolea and John Kolea, Jr., t/a K-Wood, LP. is a New Jersey Limited Partnership whose members are Pennsylvania citizens and who have a primary business address in Conshohocken, Pennsylvania 19428. Defendant is an entity with an address of CNA Plaza, 333 S. Wabash Avenue, Chicago, Illinois 60604. Plaintiff is a citizen of New Jersey and each of its members are citizens of Pennsylvania and the defendant is a citizen of the State of Illinois. The amount in controversy is in excess of Seventy-Five Thousand Dollars ($75,000.00) exclusive of interest and costs.
4. The facts are not in dispute. Plaintiff owned property located at 347 South Broad Street, Woodbury, New Jersey upon which Defendant had issued a general liability policy of insurance under its "Tailored Commercial Program Plus Package" to Plaintiff for a policy period of November 1, 2004 through November 1, 2005 ("the policy").
5. On or about February 17, 2005, at 7:45 A.M. an adjacent building, located at 337 South Broad Street, had a roof and second floor structure failure. That adjacent building was later ordered demolished. The collapse of the adjacent building allegedly damaged the subject property.
6. Prior to that date, James Kolea, on behalf of Plaintiff K-Wood, LP, entered into negotiations with Mark Investment, Inc. for the sale of the subject property. Those parties entered into a sale agreement for the subject property on the date of the collapse of the adjacent building for the purchase price of $775,000. The agreement was entered into after the alleged damage to the subject property. No repairs or improvements were made to the subject property prior to consummation of the sale, but any damage to the subject property did not reduce the negotiated price for sale because the purchaser was apparently not interested in maintaining the structure on the property. On or about September 27, 2006, the deed for the subject property was transferred from K-Wood to Mark Investment, pursuant to the February 17, 2005 sale agreement.
7. The policy on the subject property provided $234,500 of coverage for the property, with a $1,000 deductible.
8. The insurance policy at issue states, in relevant part:
We will pay for direct physical loss of or damage to Covered Property at the Premises described in the Declarations caused by or resulting from any Covered Cause of Loss.
The following coverages are added, but do not increase the Limits of Insurance provided in this Coverage Part.
The term Covered Cause of Loss includes the Additional Coverage - Collapse as described and ...