NJ Hospital's Insurer Not Required To Cover IRS Collection

Law360, New York (November 15, 2013, 3:43 PM EST) -- A New Jersey appeals court ruled Friday that North River Insurance Co. does not have to defend nine hospital trustees seeking coverage for an Internal Revenue Service collection over unpaid employment taxes, saying the policy does not cover tax liabilities.

The state appeals court affirmed the 2012 dismissal of a complaint filed by trustees for William B. Kessler Memorial Hospital Inc. and its foundation. The justices rejected the trustees' argument that loose policy language required coverage of the IRS collection notwithstanding specific policy exclusions for taxes...
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