Kahane v. American Motorists Insurance

In this action by an insured under the unscheduled personal property provisions of a homeowner’s policy for losses due to theft and mysterious disappearance, two legal questions of unusual interest are presented, neither of which appears to have been squarely determined by the courts of this State.

The first question is whether or not a release given by the insured to an alleged wrongdoer constitutes a defense in a subsequent action on the policy, even though the insurance company could not have recovered against the wrongdoer absent the release.

My answer to this question is no.

The second…