Wendy M. Flomerfelt, Plaintiff v. Matthew P. Cardiello, Gary P. Cardiello, and Janet Cardiello, Defendants; Matthew…

Summary

The Supreme Court of New Jersey reversed the Appellate Division and remanded, holding that Pennsylvania General must provide a defense to Matthew Cardiello because the policy’s exclusion for "arising out of" controlled substances is ambiguous and doubts must be resolved in favor of the insured. The Court declined to decide the indemnity issue due to insufficient factual development. Justice LaVECCHIA filed a concurring opinion emphasizing the controlling nature of Salem Group.