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Sardo v. Fidelity & Deposit Co.

100 N.J. Eq. 332; 134 A. 774 (1926)

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Sardo v. Fidelity & Deposit Co.

Court of Errors and Appeals of New Jersey

100 N.J. Eq. 332; 134 A. 774 (1926)

Facts

Sardo (plaintiff) desired to obtain insurance against theft of the jewelry in his store. Sardo visited Fidelity & Deposit Co. (Fidelity’s) (defendant) agent, who told Sardo that the agent had authority only to issue policies covering burglary and that he would speak with Fidelity about finding a policy suited to Sardo’s needs. Fidelity issued a policy covering “money and securities” but not jewelry. Sardo did not read the policy but, as he had applied for a policy covering jewelry, assumed it covered jewelry. Sardo brought suit when his store was robbed and Fidelity refused coverage. The trial court ruled that since Fidelity’s agent had knowledge that there were no securities in Sardo’s store that Sardo was entitled to have the contract reformed to substitute “jewelry” for “securities.” Fidelity appealed.

Rule of Law

Issue

Holding and Reasoning (Kays, J.)

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