Issue: Does the personal injury clause of a Comprehensive General Liability (ACGL@) policy cover unlawful detentions?
| Area of Law: | Insurance Law |
| Keywords: | Unlawful detention; Comprehensive General Liability (CGL) policy; Personal injury clause |
| Jurisdiction: | New Jersey |
| Cited Cases: | 704 A.2d 665; 607 A.2d 1255; 495 A.2d 406 |
| Cited Statutes: | None |
| Date: | 03/01/2001 |
Assuming that a claim for unlawful detention is equivalent to a false imprisonment claim, it
is likely covered under the standard personal injury clause of a CGL. New Jersey case law generally holds that a duty to defend is broader than the duty to indemnify: a carrier is thus required to defend even groundless charges alleged against the insured so long as the potential exists that indemnification will have to be provided. See Pfizer v. Employers Ins. of Wausau, 1995 WL 868197 at *3 (N.J. Super. 1995). The duty to defend, or in other words the potential for coverage, is traditionally measured by laying the allegations of the complaint alongside the coverage provisions of the policy. See Powell v. Alemaz, Inc., 760 A.2d 1141, 1144 (N.Y. Super. 2000). In construing an insurance policy, the words are generally to be given their plain, ordinary meaning. See Vorhees v. Preferred Mutual Ins. Co., 607 A.2d 1255, 1260 (N.J. 1992). Furthermore, the policy should be read in the light most favorable to the insured and consonant with the insured=s objectively reasonable expectations. See Sparks v. St. Paul Ins. Co., 495 A.2d 406, 412-13 (N.J. 1985).
Typically, a CGL policy defines Apersonal injury@ to include injury arising out of one or more of the following enumerated offenses:
a. False arrest, detention, or imprisonment; b. Malicious prosecution; c. The wrongful eviction from, wrongful entry into, or invasion of the right of private […]
margin-left:1.0in;margin-bottom:.0001pt;text-align:justify’>