SL Industries, Inc. v. American Motorists Insurance Co.
New Jersey Supreme Court
607 A.2d 1266 (1992)
- Written by Noah Lewis, JD
Facts
Newell Whitcomb brought a case for age discrimination and fraudulent inducement against his former employer, SL Industries, Inc. (plaintiff). As a result of the firing, Whitcomb experienced sleeplessness, loss of self-esteem, humiliation, and irritability. SL Industries had a general liability policy with American Motorists Insurance Co. (American Motorists) (defendant) that obligated American Motorists to defend it when facing liability for bodily injury defined as “bodily injury, sickness or disease.” American Motorists declined to defend SL Industries, and Whitcomb’s case settled for $430,000. SL Industries spent approximately $100,000 defending the suit. SL Industries sued American Motorists, seeking a declaration that the matter was covered under the policy, compensatory damages, punitive damages, fees, and costs. The parties filed cross-motions for summary judgment. The trial court found in favor of the insurer. The appellate court reversed. The New Jersey Supreme Court granted American Motorists’ petition for certification.
Rule of Law
Issue
Holding and Reasoning (Garibaldi, J.)
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