Knowing that a company could not buy insurance for its business personal property because of a serious and extensive loss history, its fiscal agent (appointed by a court at the request of a lender after the owners defaulted on loans) lied on an insurance application and claimed no losses on an application. In Grande Leather and Fur LLC, New Wave Leather Products LLC v. Edward P. Bond, CPA, As Fiscal Agent, No. A-3854-08T3 (N.J.Super.App.Div. 05/04/2011), the trial court and the appellate division agreed with the insurers and affirmed the voidance of the contract. This teaches that false statements on an application will allow an insurer to void coverage if the misrepresentations are material.

Grande Leather and Fur, New Wave Leather Products, Grande Industries, Vincent Grande and Kim Grande (insureds) appealed orders of summary judgment entered against them and in favor of defendants Edward P. Bond, CPA, and underwriters at Lloyd's and Pacific Insurance.

Since 1997, Vincent and Kim Grande have been the owners of the corporate plaintiffs, businesses initially selling leather and fur. During the operation of the businesses, a number of losses occurred as the result of theft. In 1999, the plaintiffs submitted to insurer CNA a claim for a loss of between $16,000 and $18,000 arising from a theft at the Union, N.J., location. In 2000, a theft occurred at the Linden, N.J., location, resulting in a claim for losses in the amount of $50,000 that was submitted to CNA; in 2002, a further loss of $110,000. Thereafter, plaintiffs were unable to obtain theft insurance and remained uninsured for a period of approximately 1.5 years.