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Scott v. Salerno

February 11, 1997

DENISE RAE BISHOP SCOTT AND WAYNE SCOTT, PLAINTIFFS,
v.
ANTHONY T. SALERNO AND GNOC, CORP., T/A BALLY'S GRAND HOTEL & CASINO, DEFENDANTS/THIRD-PARTY PLAINTIFFS-RESPONDENTS, AND PAULINE N. MARCHESE, DEFENDANT,V. RUTGERS CASUALTY INSURANCE COMPANY, THIRD-PARTY DEFENDANT-APPELLANT.



On appeal from the Superior Court of New Jersey, Law Division, Atlantic County.

Approved for Publication February 12, 1997. As Amended April 21, 1997.

Before Judges Michels and Kleiner. The opinion of the court was delivered by Michels, P.j.a.d.

The opinion of the court was delivered by: Michels

The opinion of the court was delivered by

MICHELS, P.J.A.D.

Third-party defendant Rutgers Casualty Insurance Company (Rutgers) appeals (1) from a summary judgment of the Law Division that directed it to indemnify and hold harmless defendant and third-party plaintiffs Anthony Salerno (Salerno) and GNOC, Corp., t/a Bally's Grand Hotel & Casino (Bally's) for expenses incurred by reason of its failure to defend Salerno and Bally's in connection with a personal injury negligence action brought against them by plaintiffs Denise Rae Bishop Scott and Wayne Scott and (2) from a post-judgment order that awarded Salerno and Bally's attorney's fees of $6,820.73.

The facts giving rise to this appeal are essentially undisputed. On June 14, 1993, Salerno, while operating an automobile owned by defendant Pauline N. Marchese (Marchese), was involved in an accident with an automobile owned and operated by plaintiff Denise Rae Bishop Scott (Scott) in Atlantic City, New Jersey. At the time of the accident, Salerno was valet parking automobiles for Bally's. The Marchese automobile was covered by a Personal Auto Policy issued by Rutgers, which, in pertinent part, provided:

PART A//--LIABILITY COVERAGE

INSURING AGREEMENT

A. We will pay damages for "bodily injury" or "property damage" for which any "insured" becomes legally responsible because of an auto accident. Damages include pre-judgment interest awarded against the "insured". We will settle or defend, as we consider appropriate, any claim or suit asking for these damages. In addition to our limit of liability, we will pay all defense costs we incur. Our duty to settle or defend ends when our limit of liability for this coverage has been exhausted. We have no duty to defend any suit or settle any claim for "bodily injury" or "property damage" not covered under this policy.

B. "Insured" as used in this Part means:

2. Any person using "your covered auto".

3. For "your covered auto", any person or organization but only with respect to legal responsibility for acts or omissions of a person for whom coverage is afforded under this Part.

EXCLUSIONS

A. We do not provide Liability Coverage for any person:

6. While employed or otherwise engaged in the "business" of:

a. selling; d. storing; or

b. repairing; e. ...


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