Peter Small, Plaintiff v. Martin M. Schuncke, Defendants. Martin M. Schuncke, Defendant and Third-Party…

Summary

The Supreme Court of New Jersey held that the third‑party plaintiff, Martin Schuncke, was an additional insured under the omnibus clause of Pennsylvania Threshermen & Farmers' Mutual Casualty Insurance Company's automobile liability policy, and affirmed the trial court's award of interest on the settlement amount. The Court applied the "initial permission" rule, finding that the original insured's grant of possession and authority to use the vehicle sufficed for coverage, and that interest was proper as equitable damages for the delayed payment.