ANTOINETTE MORRONE, PLAINTIFF-RESPONDENT, v. HARLEYSVILLE MUTUAL INSURANCE CO., DEFENDANT-APPELLANT, AND AMERICAN INTERNATIONAL ADJUSTMENT COMPANY; CIGNA INSURANCE COMPANY; FAIRFIELD MAINTENANCE COMPANY; DELLA BUONO CONSTRUCTION CO.; ANTHONY DELLA BUONO; JOSEPH DELLA BUONO; GULF OIL CORP. D/B/A CHEVRON USA; AVALON CONDOMINIUM ASSOCIATES; EILEEN HALLEY; AND JIM NATOLI AND VAHAKAN DOVLETIAN D/B/A HACKENSACK CHEVRON, DEFENDANTS., 283 N.J. Super. 411

Summary

Plaintiff insured, sold real property insured by defendant insurer. The underlying complaints that triggered the declaratory judgment action were brought against plaintiff by the subsequent purchasers for damages arising from groundwater contamination. On appeal, defendant argued that it had no duty to defend because the alleged injuries to the subsequent owners did not occur until after the policy period. The court disagreed, finding that the underlying litigation alleged exposure of gasoline to insured's property during the terms of the policies. That was sufficient to trigger potential coverage and thus, the duty to defend, unless some exclusion applied. The court noted that exclusionary clauses were enforceable only if clearly applicable, were narrowly read, and any ambiguities were resolved in favor of the insured. The court found that groundwater clearly did not fall within the category of "owned property" for the purposes of the exclusion. The court affirmed the judgment below, ...