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Expert Analysis

NJ Courts Continue To Grapple With Allocation Issue

Law360, New York (October 7, 2014, 10:35 AM EDT) -- Twenty years and four days after the New Jersey Supreme Court heard oral argument in the landmark case of Owens-Illinois Inc. v. United Ins. Co., 138 N.J. 437, 650 A.2d 974 (N.J. 1994), a state appellate court issued a decision addressing several allocation-related issues undecided by Owens-Illinois. Whether one agrees or disagrees with the rulings, it is apparent that New Jersey courts continue to exhibit a predilection toward disregarding plain contract language or settled insurance principles where they perceive enforcement of them will contravene or interfere with the state's Owens-Illinois/Carter-Wallace allocation scheme....

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