State Farm Mutual Automobile Insurance Company, Plaintiff-Respondent v. Zurich American Insurance Company…

Summary

The Supreme Court of New Jersey affirmed the lower courts' finding that State Farm's owned‑vehicle policy did not cover the teenage driver because there was no implied permission, but reversed the Appellate Division on Zurich's nonowned‑vehicle policy, holding that its "reasonably believed" language must be construed more liberally and remanded for a new trial on that issue and on the initial‑permission rule under State Farm. Justice Weintraub, concurring, would also reverse State Farm, while Justice Mountain, concurring in part and dissenting in part, would affirm the Appellate Division entirely.