Longobardi v. Chubb Ins. Co. of New Jersey

Decision Date09 June 1989
Citation560 A.2d 68,234 N.J.Super. 2
Parties, 54 Ed. Law Rep. 899 George E. LONGOBARDI, Jr., Plaintiff-Appellant-Cross-Respondent, v. CHUBB INSURANCE COMPANY OF NEW JERSEY, Chubb & Son, Inc., and Federal Insurance Company, Defendants-Respondents-Cross-Appellants.
CourtNew Jersey Superior Court — Appellate Division

Leo B. Mazer, Closter, for plaintiff-appellant/cross-respondent George E. Longobardi, Jr.

Gennet & Kallman, for defendants-respondents/cross-appellants Chubb Ins. Co. of New Jersey, Chubb & Son Inc. and Federal Ins. Co. (Harry Robinson, III, Roseland, on the brief).

Before Judges PETRELLA, SHEBELL and GRUCCIO.

The opinion of the court was delivered by

PETRELLA, P.J.A.D.

Plaintiff George E. Longobardi, Jr. appeals from a judgment dismissing his complaint based upon the jury's answers to special interrogatories. He had sought recovery under the terms of his insurance policy for losses of certain items of personal property stolen in a burglary. Defendants Chubb Insurance Company of New Jersey (Chubb) and Federal Insurance Company (Federal) 1 had denied coverage, contending that Longobardi had participated in the loss and gave false information on subjects material to the investigation during its consideration of the claim. The jury found that there were no false statements in the application and no participation by Longobardi in causing the loss. However, it found that he had made "material" false statements in the post-loss examination under oath. The complaint was dismissed and Longobardi appealed. Defendants cross-appealed certain rulings of the trial judge.

On this appeal, Longobardi's main argument is that one of the special interrogatories, number six, was erroneous because it permitted the jury to conclude that his obligation after the loss was controlled by the insurance company's subjective interpretation of "false swearing," rather than the provisions of the insurance policy and the applicable law. Longobardi also argues that his admittedly false statements after the loss were immaterial as a matter of law and that the question should not have been submitted to the jury. In addition, he argues that the judge should have instructed the jury that Chubb had the burden of proving that his statement in the examination under oath was made with intent to defraud the insurer in the loss claim. He asserts that failure to do so was plain error, and that this is particularly so where Chubb had not proven that a fraud was committed in the loss claim, and where it had not shown that it was prejudiced by any subsequent false statement. Finally, Longobardi argues that the challenged interrogatory was inconsistent with the judge's instructions to the jury, since it failed to address the critical elements of fraud in the loss claim or reliance on his subsequent false statements with resultant prejudice.

On its cross-appeal defendants argue that the trial judge committed reversible error by refusing to allow Chubb's underwriter, Annette Paolino, to testify about what action she would have taken had she obtained information from Longobardi's prior insurance company relating to his attempt to insure with that company. They also argue that this error was compounded when the judge did not charge the jury that the misrepresentations contained in the policy application were material as a matter of law. Defendants contend that the judge also erred by refusing to admit into evidence two letters purporting to establish "cancellation" of prior insurance coverage. They further contend that the judge erred by precluding full development of their insurance fraud conspiracy theory and by refusing to allow evidence allegedly implicating Longobardi. Finally, they claim that evidence of Longobardi's teaching attendance record at Ramapo High School for June 1982 was improperly allowed.

In August 1982 Chubb issued a renter's or tenant's policy, including a personal articles floater ("P.A.F."), with coverage for antiques, fine art, and a Hummel collection owned by Longobardi. The loss came as a result of a burglary at Longobardi's rented home between April 6 and April 10, 1984 while he was out of town. At trial Longobardi testified that he was 46 years old, had 25 years of experience as a high school English teacher, and was currently employed at a senior high school in Spring Valley, New York, where he had been teaching for about 18 years. He and members of his immediate family had been collecting fine art objects and collectibles for many years, such as antique furnishings, Hummels, paintings, jewelry and fine rugs.

Longobardi had been living in West Nyack, New York, where he had attempted to obtain renter's insurance for his collection with two insurance companies. Aetna Insurance Company (Aetna) had issued a policy to him with regular coverage, and additional coverage for his men's jewelry. Thereafter, by an April 6, 1982 letter, Aetna declined to continue coverage "due to the type of property and the high value." 2 Longobardi then tried to place insurance through a local agent for St. Paul Insurance Company (St. Paul). He showed the Aetna cancellation letter to the agent who then applied for coverage with St. Paul. Longobardi also obtained appraisals for his furnishings, fine art, and some major pieces of his men's jewelry.

St. Paul issued a general policy and a P.A.F. covering only the men's jewelry, not the fine art objects. Longobardi then applied for coverage for his fine art objects. His application was accepted. However, St. Paul notified Longobardi that it would not continue coverage unless he installed a burglar alarm system in the house and obtained locked cabinets for all of his valuable possessions. According to Longobardi, the cost of installing the burglar alarm system (reportedly $3,500) and purchasing locking cabinets was too expensive, especially since he was living in a rented house. As a result, St. Paul refused to provide the additional coverage. When the renewal came due the following year Longobardi decided to discontinue it because the premium had increased substantially.

Around this time, July and August 1982, Longobardi moved from West Nyack to Closter, New Jersey, where he took up residence with his brother in a rented home. About a year later Longobardi consulted Arthur Parsells of the Parsells Insurance Agency in Closter regarding renter's insurance and coverage for his household possessions, including some jewelry, fine art objects and a Hummel collection. Parsells recommended a local jeweler to appraise Longobardi's jewelry collection and a couple of other appraisers to appraise the antiques and fine art collection. For the fine art collection Longobardi did not use the recommended appraisers, but obtained an appraisal from a firm known as "Appraisal and Estate Services."

Longobardi obtained the appraisal of his jewelry collection and returned to Parsells' office on August 12, 1983. Parsells recommended Chubb's renter's insurance policy with a personal articles floater to cover the jewelry. Parsells testified that he completed the application form based on Longobardi's answers to his questions and that Longobardi's signature was not required.

According to Parsells, Longobardi answered a question regarding employment by saying he was a professor. In response to an application question about prior insurance, Longobardi apparently indicated "Allstate, Harrisburg, Pennsylvania." Questions asking if he had been refused homeowner's or P.A.F. coverage within the last three years, or if coverage had been declined, cancelled or renewal refused within the last three years were answered in the negative.

On August 23, 1983, Chubb issued a policy which provided coverage in Schedule C for personal property under "Section 1--Property Coverages," and separate P.A.F. coverage. In October 1983 Parsells obtained additional coverage for Longobardi's fine art collection after appraisals were received. In December 1983 the policy was amended to include Longobardi's Hummel collection. The appraisal of the Hummels was done, as suggested by Parsells, by Longobardi using a "1983 Hummel Guide" and performing the appraisal himself.

Parsells had gone to Longobardi's home in October 1983. He described it as reminding him of a museum with its fine collection of art objects. He testified that he had never seen such an extensive collection of Hummels.

On the weekend of April 6, 1984 Longobardi went "antiquing" on a trip with his parents to New Hope, Pennsylvania. Since his brother was on a business trip no one was home that weekend. Longobardi returned to Closter on the following Tuesday afternoon and discovered that his home had been burglarized. The police responded to his call and took a statement and photographs of the premises. Longobardi also notified Parsells, who subsequently went to the house and assisted in preparing a proof of loss. Longobardi noted that some items that had been taken had not been included on the appraisal listing such as "silver, some Hummels, some porcelains, VCR tapes, TV, jewelry, coins." He testified that the total value of the loss claimed, including some items belonging to his brother, was $232,592.50.

A claims adjuster from Chubb interviewed Longobardi about a week or so later and prepared a handwritten statement of the interview. He sent this statement to Longobardi who corrected the reference to his being an English professor. He was an English teacher, and had been an assistant professor when previously employed by a college for a short time. Longobardi also corrected the reference to Allstate as his previous insurance carrier to St. Paul. The statement, which he signed, also said that he had "never made application to any insurance company other than Chubb and Son for my fine arts collection or my Hummel collection."

In August 1984 Chubb asked Longobardi to submit to an examination under oath. During that examination...

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4 cases
  • Tempelis v. Aetna Cas. and Sur. Co.
    • United States
    • Wisconsin Supreme Court
    • June 17, 1992
    ...that the concealment or fraud clause was ambiguous and construed the ambiguity in favor of coverage. See Longobardi v. Chubb Ins. Co. of New Jersey, 234 N.J.Super 2, 560 A.2d 68 (1989). This finding was analogous to the decision made by the court of appeals in the present case. See Tempelis......
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    • United States
    • New Jersey Supreme Court
    • December 18, 1990
    ...with fraudulent intent, the misstatement meets a stringent test of materiality, and the insurer was in fact prejudiced. 234 N.J.Super. 2, 560 A.2d 68 (1989). We granted certification, 118 N.J. 178, 570 A.2d 949, and now reverse the judgment of the Appellate Division and reinstate the judgme......
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    • United States
    • New Jersey Superior Court — Appellate Division
    • February 27, 1991
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  • Longobardi v. Chubb Ins. Co. of New Jersey
    • United States
    • New Jersey Supreme Court
    • October 3, 1989
    ...CHUBB INSURANCE COMPANY OF NEW JERSEY, et al. Supreme Court of New Jersey. Oct. 3, 1989. Petition for certification granted. (See 234 N.J.Super. 2, 560 A.2d 68) ...
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    • January 3, 2012
    ...law to the nonclient."). See Webster's Ninth New Collegiate Dictionary 733 (1983), cited in Longobardi v. Chubb Ins. Co. of New Jersey, 234 N.J. Super. 2, 21-22 (App. Div. See Geoffrey C. Hazard Jr. and W. William Hodes, The Law of Lawyering, §37.3; ABA Comment 2. Massachusetts Mut. Life In......

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