The insurer’s motion for judgment on the pleadings was granted after the insured failed to file suit against the insurer within the policy’s two-year suit limitation provision. Interstate Investments, LLC v. Mt. Hawley Ins Co., 2026 U.S. Dist. LEXIS 98108 (S.D. N. Y. May 4, 2026).

On or before June 27, 2023, a wind, hail and rainstorm damaged Interstate’s property in Oklahoma. Interstate filed a claim under its policy with Mt. Hawley. The policy provided that New York law applied and contained a two- year suit limitation provision.

The claim was partially denied on August 10, 2023. Interstate attempted to negotiate further payments with Mr. Hawley but was unsuccessful. Interstate filed suit on August 8, 2025 in New York state court, seeking a declaratory judgment invalidating the policy’s choice-of-law and statute-of- limitations provisions. The complaint asserted breach-of contract and bad faith claims under Oklahoma law.

Mt. Hawley removed to federal district court and filed a motion for judgment on the pleadings. Mt. Hawley argued that Interstate’s claims were precluded by the policy’s two-year limitation period. Interstate conceded that its properties were damaged by the storm on or before June 27, 2023. The limitations provision required that a legal action against Mt. Hawley arising from a coverage dispute be brought “within 2 years after the date on which the direct physical loss or damage occurred.” Therefore, the last day on which Interstate could have brought suit was June 27, 2025 – over a month before Interstate filed its complaint on August 8, 2023.

Interstate argued that New York law provided that a breach of contract cause of action accrued at the time of the breach and the limitations period did not begin to run until August 10, 2023. Mt. Hawley was correct that Interstate’s claims were barred by the two-year limitations period in the policy.. Parties were free to amend the two-year statute of limitations for breach of contract claims.

The limitations period in the policy precluded Interstate from bringing a lawsuit premised on its coverage dispute against Mt. Hawley after June 27, 2025 – two years from the date of the storm damage. Mt. Hawley’s motion for judgment on the pleadings was granted.