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LIBERTY MUT. FIRE INS. CO. v. KAHLAID, INC.

199 N.J. Super. 494 (1985)

489 A.2d 1231

LIBERTY MUTUAL FIRE INSURANCE COMPANY, PLAINTIFF-RESPONDENT, v. KAHLAID, INC. AND MOHAMMED A. DARI, DEFENDANTS, AND BURRO CORP., DEFENDANT-APPELLANT.

Superior Court of New Jersey, Appellate Division.

Decided March 19, 1985.

Attorney(s) appearing for the Case

Mahoney, Mahoney & Cannon, attorneys for appellant (Dennis M. Mahoney, of counsel; Barbara Billig, on the brief).

Prozio, Bromberg & Newman, attorneys for respondent (Norman G. Sade, of counsel; Carmen Barbazan, on the brief).

Before Judges PRESSLER, BRODY and COHEN.

The opinion of the court was delivered by BRODY, J.A.D.

When appellant Burro Corp. sold its supermarket business, including its lease of the premises, to defendant Kahlaid, Inc. it took back a promissory note in the amount of $40,000 and a security interest in the inventory and fixtures of the business. The contract of sale required that Kahlaid "maintain an insurance policy covering casualty ... indicating that Burro Corp. is the `primary loss payee.'" Pursuant to...

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