George T. McCool, Jr., Wright & O'Donnell, Iselin, NJ. Attorneys for Plaintiff National Specialty Insurance Company
Dawn L. Jennings, Rawle & Henderson LLP, Marlton, NJ. Attorneys for Defendant Mark IV Transport and Logistics
REN§E MARIE BUMB, District Judge.
Plaintiff National Specialty Insurance Company ("Plaintiff") has moved for default judgment against Defendants Mark IV Transport and Logistics ("Mark IV"), Walter S. Benkius ("Benkius"), Frank Papa ("Papa"), and Olympic National Express ("Olympic") (collectively, the "Defendants"). For the reasons that follow, that motion is GRANTED.
On September 27, 2010, in Logan Township, New Jersey, a motor vehicle being operated by Charles B. Minor ("Minor") collided with a tractor-trailer being operated by Benkius. Following the accident, on March 28, 2010, Minor filed suit (the "Minor Litigation"), in the Superior Court of New Jersey, against (1) Benkius; (2) Rancocas Valley Warehouse & Trucking ("Rancocas") - the owner of the tractor trailer Minor was driving and, allegedly, Benkius' employer; and (3) Mark IV - also alleged to be Benkius' employer. Minor alleges that Benkius operated his tractor trailer in a reckless and negligent manner, that Minor suffered injury as a result, and that Rancocas and Mark IV are liable for Benkius' conduct based on theories of agency, negligent entrustment, and negligent hiring.
Rancocas maintained an insurance policy (the "Policy") with Plaintiff. The Policy insures Rancocas for use of the tractor-trailer and, pertinent here, others using it with Rancocas' permission, provided that they are not utilizing it under a lease for non-Rancocas business. The Policy reads in pertinent part:
1. WHO IS AN INSURED
The following are "insureds":
a. You for any covered "auto."
b. Anyone else while using with your permission a covered "auto" you own, hire or borrow. However, none of the following are "insureds" under this subparagraph:
* * *
(7) Anyone who has leased, hired, rented, or borrowed an "auto" from you that is used in a business other than yours.
On May 17, 2011, Plaintiff filed a Complaint in this Court seeking a Declaratory Judgment that, under the Policy, it has no duty to defend or indemnify the Defendants in this action - Frank Papa, Olympic National Express, Benkius, and Mark IV - in the Minor Litigation. [Docket No. 1]. Plaintiff alleged that, on the date of the accident, the tractor-trailer was being used under a lease agreement for "business other than ...