In this Declaratory Judgment Action, a New Jersey Federal District Court Judge granted relief to an Insurer against a party not named as an insured under the policy who was seeking coverage for claims being pursued against them by a driver and passengers of a motor vehicle involved in a collision with a vehicle owned by the Named Insured, but while under lease and not on the Named Insured’s business. Although procedurally the matter was ruled upon pursuant to a Motion for Default Judgment, the Court found the party seeking coverage had no meritorious defense to the claim for declaratory judgment, as they were not a named insured under the policy. The Court also found that, at the time of the underlying accident, the vehicle at issue was being used under a lease agreement for a business not related to the named insured and, thus, excluded for coverage under the terms of the Policy.
