The New Jersey Appellate Division recently had occasion to address the issue of trigger-of-coverage for employment claims in the case of General Security Nat’l Ins. Co. v. N.J. Intergovernmental Ins. Fund, No. A-5591-08T1, 2011 WL 3714982 (N.J. Super App. Div. August 25, 2011), certif. den. 209 N.J. 213 (2012). The decision is unpublished and the Supreme Court did not grant review so the direct import of the holding is limited. Nonetheless, trigger-of-insurance for employment claims is an area of law so unsettled in New Jersey that any glimpse into the appellate tea leaves is worth considering.

General Security was a dispute over insurance coverage for an underlying hostile workplace claim, Spagnola v. Town of Morristown, No. 05-577 (JLL) (D.N.J. Dec. 7, 2006). Plaintiff Spagnola was the information technology manager for the Town of Morristown. On multiple occasions, from November 2000 through June 2004, she encountered sexually explicit material on the work computer of the town’s business administrator, Eric Maurer. On Aug. 8, 2001, Spagnola complained to Maurer and the mayor, but nothing happened. The plaintiff continued to object until finally, on Aug. 13, 2004, she resigned due to the hostile work environment. She sued, and the case was later settled for $950,000 in compensatory damages. While the employment case was pending, a declaratory judgment action was instituted seeking a determination of insurance coverage for Spagnola’s claims.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]