State of New Jersey, Department of Environmental Protection, Plaintiff-Respondent, and the City of Newark…

Summary

The Supreme Court affirmed the Appellate Division's decision that the insurer is not obligated to indemnify or defend the insured for the Department of Environmental Protection's cleanup costs because the owned‑property exclusion applies and because such costs are not "damages" under the policy. The Court based its ruling on the policy language and the lack of proven third‑party property damage. Justice O'Hern dissented, arguing that the policy should cover the cleanup costs as damages to third parties.