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SCHMIDT v. SMITH

155 N.J. 44 (1998)

713 A.2d 1014

LISA M. SCHMIDT, PLAINTIFF-RESPONDENT, v. DENNIS SMITH AND PERSONALIZED AUDIO VISUAL, INC., DEFENDANTS AND THIRD-PARTY PLAINTIFFS-RESPONDENTS, AND UNITED STATES FIDELITY AND GUARANTY COMPANY, THIRD-PARTY DEFENDANT-APPELLANT.

The Supreme Court of New Jersey.

Decided June 15, 1998.

Attorney(s) appearing for the Case

Kevin E. Wolff, argued the cause for appellant (McElroy, Deutsch & Mulvaney, attorneys; Mr. Wolff and Mary Rose Migliazza, on the briefs).

Elizabeth Zuckerman, argued the cause for respondent Lisa M. Schmidt (Zuckerman & Fisher, attorneys).

John J. Bublewicz, argued the cause for respondent Dennis Smith.

Francis X. Garrity, argued the cause for respondent Personalized Audio Visual, Inc. (Garrity, Graham & Favetta, attorneys).

Jerome J. Graham, Jr., submitted a brief on behalf of amicus curiae New Jersey Manufacturers Insurance Company (Graham, Curtin & Sheridan, attorneys).

Susan Stryker, submitted a brief on behalf of amicus curiae American Insurance Association (Sterns & Weinroth, attorneys).

The opinion of the Court was delivered by O'HERN, J.

The primary question in this appeal is whether insurance coverage exists under the employers liability section of a workers' compensation policy for claims of workplace sexual harassment when the harassment results in bodily injury. The specific question is whether the policy's exclusion of coverage for damages arising out of harassment (among other things) is effective to deny such coverage. We find that to the...

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