John Matits, Plaintiff-Respondent v. Nationwide Mutual Insurance Co.

Summary

The Supreme Court of New Jersey affirmed that under the standard automobile liability omnibus clause, a permittee who receives initial permission to use a vehicle is covered for subsequent use short of theft, even if the use deviates from the original purpose. The Court adopted the "initial permission" rule as the proper construction of the clause, finding Nationwide liable for the judgments against the injured plaintiffs. Justice Hall dissented, arguing that coverage should be limited to the scope of permission at the time of the accident and that the majority overreached legislative policy.