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Judge-Made Insurance That Was Not On The Menu: Schmidt V. Smith And The Confluence Of Text, Expectation, And Public Policy In The Realm Of Employment Practices Liability, Jeffrey W. Stempel Jan 1999

Judge-Made Insurance That Was Not On The Menu: Schmidt V. Smith And The Confluence Of Text, Expectation, And Public Policy In The Realm Of Employment Practices Liability, Jeffrey W. Stempel

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In Schmidt v. Smith, the New Jersey Supreme Court caught more than a few observers by surprise. New Jersey courts have generally issued opinions regarded as pro-claimant and pro-policyholders. But everyone's taste for recompense and coverage has limits. In Schmidt, the court exceeded those limits for many observers by holding that despite what it regarded as clear contract language in an exclusion, an insurer providing Employers’ Liability (“EL”) coverage along with Workers' Compensation (“WC”) insurance for the employer was required to provide coverage in a case of blatant sexual harassment bordering on criminal assault. In doing so, the Schmidt court, …


Recent Case Developments, Jeffrey W. Stempel Jan 1999

Recent Case Developments, Jeffrey W. Stempel

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Recent case developments in Insurance law in the year 1998-1999.


Insuring Employer Liability For Hostile Work Environment Claims: How Changes In Discrimination Law May Affect The Growing Market For Employment-Related Practices Liability Insurance, Francis J. Mootz Iii Jan 1999

Insuring Employer Liability For Hostile Work Environment Claims: How Changes In Discrimination Law May Affect The Growing Market For Employment-Related Practices Liability Insurance, Francis J. Mootz Iii

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Assessing the role that Employment Practices Liability Insurance might play in the future requires an understanding of two murky areas of law: employment law and insurance coverage law. In Part I of the Article I discuss the evolution of employer liability for hostile work environment sexual harassment. In Part II of the Article I analyze the consequences for insurance coverage that follow from recognizing that liability for hostile work environment sexual harassment is grounded on negligence principles.