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AMERICAN HOME v. HERMANN'S WAREHOUSE

117 N.J. 1 (1989)

563 A.2d 444

AMERICAN HOME ASSURANCE COMPANY, INC., PLAINTIFF-RESPONDENT, v. HERMANN'S WAREHOUSE CORPORATION, DEFENDANT-APPELLANT.

The Supreme Court of New Jersey.

Decided September 18, 1989.

Attorney(s) appearing for the Case

William J. Shipers argued the cause for appellant (Thomas J. Shamy, attorney).

Daniel C. Nowell argued the cause for respondent (Garrity, Fitzpatrick, Graham, Hawkins & Favetta, attorneys).

The opinion of the Court was delivered by CLIFFORD, J.

Plaintiff, American Home Assurance Company, Inc. (American), furnished general comprehensive liability coverage to the defendant, Hermann's Warehouse Corporation, a warehouse company, under a "Warehouseman or Bailee Liability" Form (Merchandise) policy. The contract contained two deductible provisions. In addition, and significantly for this case, the policy reserved to the insurer the exclusive right to settle...

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