On appeal from the Superior Court of New Jersey, Law Division, Somerset County.
J.h. Coleman, Shebell*fn1 and A.m. Stein. The opinion of the court was delivered by Arnold M. Stein, J.A.D.
Third-party defendant Atlantic Employers Insurance Company appeals the summary judgment entered in favor of third-party plaintiff Union Garage requiring Atlantic to defend and indemnify Union Garage against plaintiff's claims. We reverse and remand for entry of judgment in favor of Atlantic.
On August 26, 1988, plaintiff truck driver, employed by Fieldville Farms, was injured when a rear-door cable snapped as he opened the door of his employer's truck. Plaintiff fell to the ground and landed on his buttocks. He eventually required a laminectomy. Union Garage had replaced the cables to the rear overhead door on March 8, 1985, and again on July 15, 1987. Between June 21 and 27, 1988, Union Garage had also serviced the door cables and rollers.
Plaintiff received workers' compensation benefits and then sued the truck and cable manufacturers and Union Garage. Union
Garage filed a third-party complaint against Atlantic for defense and indemnification of plaintiff's claims under a business automobile policy that Atlantic had issued to Fieldville Farms. Atlantic filed a motion for summary judgment and Union Garage filed a cross-motion for summary judgment.
The trial Judge granted Union Garage's cross-motion, finding that Atlantic had to defend Union Garage under the omnibus clause of Fieldville's insurance policy which provides:
We will pay all sums the insured legally must pay as damages because of bodily injury or property damage to which this insurance applies, caused by an accident and resulting from the ownership, maintenance or use of a covered auto.
We granted leave to file an interlocutory appeal.
Union Garage claims that it qualifies as an insured under the omnibus clause of the insurance policy because the injury was caused by an accident that resulted from the maintenance of a covered automobile. Union Garage's argument, however, incorrectly assumes that it is an additional insured under Fieldville's policy.
Part IV of Fieldville's insurance ...