RAILROAD ROOFING, ETC., CO. v. FINANCIAL FIRE & CAS. CO.


85 N.J. 384 (1981)

427 A.2d 66

RAILROAD ROOFING & BUILDING SUPPLY CO., INC., A NEW JERSEY CORPORATION, PLAINTIFF-RESPONDENT, v. FINANCIAL FIRE & CASUALTY CO., A FLORIDA CORPORATION, ET AL., DEFENDANTS, AND THE STATE OF NEW JERSEY — DEPARTMENT OF INSURANCE, DEFENDANT-RESPONDENT, AND NEW JERSEY PROPERTY-LIABILITY INSURANCE GUARANTY ASSOCIATION, DEFENDANT-APPELLANT, AND MOFFATT EXCESS, INC., DEFENDANT. THE WHITE MOTOR CREDIT CORPORATION, PLAINTIFF, v. BAR-DOW CORP., INDIVIDUALLY AND IN THE NAME OF RICHARD SCHAUB, COMMISSIONER OF BANKING, ET AL., DEFENDANTS, AND JAMES F. DOWLING, INDIVIDUALLY AND TO THE EXTENT OF HIS INTEREST, IF ANY, IN BAR-DOW CORPORATION, DEFENDANT-THIRD PARTY PLAINTIFF-RESPONDENT, v. JAMES J. SHEERAN, INDIVIDUALLY AND AS COMMISSIONER OF THE DEPARTMENT OF INSURANCE, THIRD PARTY DEFENDANT-RESPONDENT, AND T.M. BOYD, INDIVIDUALLY AND AS EXECUTIVE SECRETARY OF THE NEW JERSEY PROPERTY-LIABILITY INSURANCE GUARANTY ASSOCIATION, DEFENDANT-APPELLANT, AND THE ALL STATEWIDE AGENCY, A CORPORATION ET AL., THIRD PARTY DEFENDANTS. ERNEST J. BUCCINI, M.D., DR. EMANUEL KLOSK, HEADLINERS, INC., P.C.M. MOLDING COMPANY, EDWARD JOFFE, ELIZABETH BOARD OF EDUCATION, FRANK ZACCARDI, M.D., DR. A. DIRENZO, KARRINGTON FARMS, INC., D/B/A FOUR SEASONS FARM, BYRAM ROAD HOUSE, INC., JOHN LEHITA, ANNA LEHITA, EDWARD FAYE, MARY FAYE, RICHARD STACK, ESTATE OF CARL HAIPT, ROBERT O. POWERS, GEORGE F. JOHNSON, DAVID J. KENDALL, LEWIS ROSENBLATT, D/B/A SPARTA MEDICAL ASSOCIATES, A PROFESSIONAL ASSOCIATION, THE J.E. BURKE COMPANY, A CORPORATION OF WISCONSIN, DEL-CHUCK CORP., CHARLES L. PARTIE AND ROBERT TREAT SAVINGS & LOAN, PLAINTIFFS-RESPONDENTS, v. STATE OF NEW JERSEY, JAMES J. SHEERAN, INDIVIDUALLY AND AS COMMISSIONER OF THE DEPARTMENT OF INSURANCE OF THE STATE OF NEW JERSEY, DEFENDANTS-RESPONDENTS, AND T.M. BOYD, INDIVIDUALLY AND AS EXECUTIVE SECRETARY OF THE NEW JERSEY PROPERTY-LIABILITY INSURANCE GUARANTY ASSOCIATION, DEFENDANT-APPELLANT, AND JOYCE LUCIANO ET AL., DEFENDANTS.

The Supreme Court of New Jersey.

Decided March 26, 1981.


Attorney(s) appearing for the Case

Richard R. Spencer, Jr., argued the cause for appellants (Stryker, Tams & Dill, attorneys; Richard R. Spencer, Jr., and William J. Heller on the briefs).

Peter D. Pizzuto, Deputy Attorney General, argued the cause for respondent Commissioner of Insurance (John J. Degnan, Attorney General of New Jersey, attorney; Stephen Skillman, Assistant Attorney General, of counsel).

Theodore A. Gardner argued the cause for respondent James F. Dowling (Timothy K. Madden, Director, Hudson County Legal Services, Corp., attorney).

John I. Lisowski argued the cause for respondents Ernest J. Buccini, et al. (Morgan, Melhuish, Monaghan & Spielvogel, attorneys).

Allan Maitlin argued the cause for respondent Railroad Roofing & Building Supply Company (Feurstein, Sachs & Maitlin, attorneys).

Eugene M. Haring submitted a brief on behalf of amici curiae Alliance of American Insurers, American Insurance Association, National Association of Independent Insurers, and State Farm Mutual Automobile Insurance Company (McCarter & English, attorneys; Ronald J. Hedges on the brief).

Arthur R. Schmauder submitted a brief on behalf of amicus curiae Risk and Insurance Management Society, Inc. (Shanley & Fisher, attorneys; LeBoeuf, Lamb, Leiby & Macrea, Esquires, members of the New York bar, and Reginald Beane, Esquire, a member of the Massachusetts bar, of counsel).


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

The issue presented on appeal in these three consolidated cases1 involves the applicability of the New Jersey Property-Liability Insurance Guaranty Association Act, N.J.S.A. 17:30A-1 et seq. (Guaranty Act), as it existed prior to February 22, 1980, to surplus lines insurance carriers.2 The particular question of insurance law common to these...

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