Elberon Bathing Co., Inc., a Corporation of the State of New Jersey and Elberon Bathing Club, a Corporation of the…

Summary

The Supreme Court of New Jersey held that the proper method for determining "actual cash value" under the State’s Standard Form fire insurance policy is the broad evidence rule, which requires consideration of all relevant evidence, including depreciation. An appraisal award based solely on replacement cost without depreciation was a legal error and must be vacated. The Court further held that the Arbitration Act does not govern fire‑insurance appraisals. Accordingly, the judgment was reversed and the case remanded for a new trial on liability and, if appropriate, a new appraisal conducted under the broad evidence rule.