Valley Forge Ins. Co., 970 A.2d 1149 (Pa. Super. 2009), the Superior Court of Pennsylvania overturned the jury’s verdict, holding that the insured failed to comply with its general liability policy’s two year suit limitation provision.  The Superior Court confirmed that Pennsylvania courts recognize such clauses as valid.  Perhaps more importantly, the court rejected the policyholder’s argument that the carrier waived or should be estopped from relying on the provision, noting that the insurer sent the insured four letters (including one directed to counsel) before the limitation period expired specifically referencing the suit limitation in each letter.  The court further held that the mere declaration by the insurer that it was continuing to investigate the claim was insufficient to prove the insured was induced to forbear from commencing suit.

As the primary author of the insurer’s Superior Court briefs, I am pleased to report that the Pennsylvania Supreme Court denied review on February 23, 2010.