Patterson Tallow Co., Inc. v. Royal Globe Insurance Co

In Patterson Tallow Co., Inc. v. Royal Globe Insurance Co., 89 N.J. 24 (1982), the employee's indictment occurred prior to the effective date of the policy and the acquittal occurred during the period of coverage. After he was acquitted, the employee sued the employer for malicious prosecution. The policy provided coverage for malicious prosecution committed during the conduct of the employer's business. Id. at 26-27, 444 A.2d 579. The Court held that for the purpose of insurance coverage, malicious prosecution occurred at the time the underlying complaint was filed because that was when the complaining party, i.e., the plaintiff in the malicious prosecution suit, was actually damaged. Id. at 36-37, 444 A.2d 579. Therefore, the Court upheld the denial of coverage because the underlying complaint was filed before the effective date of the policy.