Citizens Cas. Co. Of N.Y. v. Zambrano Trucking Co. Inc.

Decision Date07 July 1947
Docket Number147/308.
Citation54 A.2d 721
PartiesCITIZENS CASUALTY CO. OF NEW YORK v. ZAMBRANO TRUCKING CO., Inc., et al.
CourtNew Jersey Court of Chancery

OPINION TEXT STARTS HERE

Suit by Citizens Casualty Company of New York, a corporation, against Zambrano Trucking Company, Inc., and another for cancellation of automobile liability policy.

Decree for complainant.

Syllabus by the Court

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Equity will grant rescission of a policy of insurance upon proof of reliance on material representations untrue in fact, without proof of conscious intentional fraud.

Furst & Furst and David E. Feldman, all of Newark, for complainant.

Louis Santorf, of Paterson, for defendants.

STEIN, Vice Chancellor.

Complainant's bill is brought for the cancellation of an insurance policy issued by it to the defendant company dated May 18, 1945, for the period from May 19th of that year to May 19, 1946. The policy covered an automobile of the defendant and contained among other ‘Declarations' upon which the Company relied in issuing the policy Item 7, which reads: ‘During the past year no insurer has canceled any automobile insurance issued to the named insured, except as herein stated: no exceptions.’

On September 26, 1945 complainant notified the defendant in writing that it cancelled said policy effective October 1, 1945 and delivered to the defendant its check for the unearned premium for the period subsequent to October 1, 1945. This it did as appears from the testimony because it learned that Frank Zambrano an employee and driver of the defendant had negligently operated an automobile of the defendant causing death and serious injury.

After October 1, 1945, upon further investigation complainant learned for the first time that an automobile liability insurance policy written in favor of the defendant by the Atlantic Casualty Insurance Company was cancelled within one year immediately preceding the date of the issuance of the policy here in question, and thereupon on July 16, 1946, in notified the defendant company that because it had omitted to disclose this fact, which fact affected the risk which the complainant assumed it elected to cancel the policy and declare it null and void from its inception and forwarded to the defendant check in full refund of all premium paid by it.

Charles Silberstein was the agent of the Citizens Casualty Insurance Company and was also the agent of the Atlantic Casualty Insurance Company and wrote both policies. The defendant contends that it made no...

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13 cases
  • Merchants Indem. Corp. v. Eggleston
    • United States
    • New Jersey Supreme Court
    • 19 Marzo 1962
    ...endorsements, the insured adopted the 'representation' as to sole ownership contained therein. Citizens Casualty Co. v. Zambrano Trucking Co., Inc., 140 N.J.Eq. 378, 380, 54 A.2d 721 (Ch.1947), affirmed, 141 N.J.Eq. 310, 57 A.2d 17 (E. & A. In general, an insured is chargeable with knowledg......
  • Millhurst Mill. & Drying Co. v. Automobile Ins. Co.
    • United States
    • New Jersey Superior Court — Appellate Division
    • 30 Junio 1954
    ...do.' The affirmative duty of the insured to read his policy has been similarly expressed in Citizens Casualty Co. of New York v. Zambrano Trucking Co., Inc., 140 N.J.Eq. 378, 54 A.2d 721 (Ch.1947), affirmed 141 N.J.Eq. 310, 57 A.2d 17 (E. & A. 1948); Berrien v. New York Life Ins. Co., 132 N......
  • State Farm Mut. Auto. Ins. Co. v. Wall
    • United States
    • New Jersey Superior Court
    • 30 Abril 1965
    ...representations untrue in fact, without proof of conscious or intentional fraud, is settled. Citizens Casualty Co. of New York v. Zambrano Trucking Co., 140 N.J.Eq. 378, 54 A.2d 721 (Ch.1947), affirmed 141 N.J.Eq. 310, 57 A.2d 17 (E. & A. State Farm charges that it issued its policy in reli......
  • State Farm Mut. Auto. Ins. Co. v. Wall
    • United States
    • New Jersey Superior Court — Appellate Division
    • 5 Julio 1966
    ...by Wall without protest or correction constituted an adoption of these representations. Citizens Casualty Co. (of New York) v. Zambrano Trucking Co., Inc., 140 N.J.Eq. 378, 54 A.2d 721 (Ch.1947), affirmed 141 N.J.Eq. 310, 57 A.2d 17 (E. & A. 1948); cf. Merchants Indemnity Corp. v. Eggleston......
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