Manchester, NJ – A federal judge rejected an attempt by C.J. Hesse, Inc. and Atlantic Pier Co. to compel their carrier to cover six state lawsuits tied to accidents at an Ocean County landfill, denying the contractors’ motion and granting the insurer’s cross-motion before closing the case.
Landfill suits settled or dismissed
U.S. District Judge Robert Kirsch ruled that American Family Home Insurance Co. had no duty to defend Hesse or Atlantic Pier in six New Jersey actions arising from four incidents involving municipal garbage trucks at the Manchester landfill. The parties confirmed the underlying cases were either settled or voluntarily dismissed as to the plaintiffs, leaving only defense-cost liability at issue.
Policy language drives decision
The court held the commercial auto insurance policy—designated to cover “Any Auto”—did not extend to third-party municipal trucks that plaintiffs did not own, lease, hire, borrow, or use in their business. Judge Kirsch found plaintiffs were absentee landlords; the accidents stemmed from conditions on premises operated by a tenant, not from the plaintiffs’ ownership, maintenance, or use of a covered auto.
The insurer’s denials were therefore consistent with the policy’s terms.
Statute argument falls flat
Plaintiffs’ reliance on New Jersey’s compulsory auto insurance statute was rejected. The court concluded the statute obligates vehicle owners to insure their own vehicles and does not impose coverage or a defense for claims tied to unrelated, third-party autos. With no contractual or statutory basis to shift defense costs, the court granted summary judgment to the insurer and dismissed the complaint.
Key Points
- Judge Robert Kirsch denied plaintiffs’ motion and granted the insurer’s cross-motion, dismissing the case.
- “Any Auto” coverage did not include third-party municipal trucks involved in landfill accidents.
- New Jersey’s compulsory insurance law did not create a defense duty for claims tied to non-owned vehicles.
A hard stop for a coverage fight that never left the policy’s four corners.
