George M. Brewster & Son, Inc., a New Jersey Corporation, for the Use and Benefit of the Travelers Insurance…

Summary

The Supreme Court of New Jersey affirmed the dismissal of George M. Brewster & Son's action, holding that the indemnity clause in the lease did not cover the judgments paid by Travelers because the losses were not "actual loss" within the contract's scope. The court emphasized that contract interpretation must follow the expressed intent of the parties and that subrogation cannot be imposed when the indemnity is limited. Justice Vanderbilt dissented, arguing that the second paragraph of the indemnity should broaden coverage to include the losses.