Justia Insurance Law Opinion Summaries

Plaintiff filed a claim with his Insurer under his policy for stolen tools and equipment, which Insurer denied. Plaintiff sued. The district court granted summary judgment for Insurer. The court of appeals reversed and remanded for entry of judgment for Plaintiff. On remand, Plaintiff requested and received attorney fees related to both the district court and the appellate proceedings. The court of appeals reversed the award of appellate attorney fees, concluding Plaintiff had waived his right to appellate fees by not filing a motion for attorney fees with the court of appeals in the prior appeal. Petitioner filed a motion requesting appellate attorney fees for his second appeal in Snider II. The court of appeals awarded additional appellate attorney fees. Plaintiff appealed, requesting a judgment for the appellate attorney fees incurred in Snider I and an award of additional fees for the appeal in Snider II. The Supreme Court affirmed, holding that the court of appeals (1) correctly applied Supreme Court Rule 7.07(b), Evans v. Provident Life & Accident Ins. Co., and Kan. Stat. Ann. 40-908; and (2) did not err in determining the amount of reasonable attorney fees related this current appeal. View "Snider v. Am. Family Mut. Ins. Co." on Justia Law

The Workers Compensation Board awarded Plaintiff benefits under the Workers Compensation Act for an injury he sustained while operating a go-cart at an event sponsored by his employer (Employer). Employer and its insurance carrier (Insurer) appealed the award, claiming that Plaintiff's injuries were not compensable because they were sustained during a recreational or social event that Plaintiff was not required to attend. The court of appeals affirmed the Board. The Supreme Court reversed, holding that the Board applied the incorrect legal standard in determining whether Plaintiff's injuries arose out of and in the course of his employment, and the error was not harmless. Remanded to the Board to make the determination based on the statutory criteria of Kan. Stat. Ann. 44-508(f). View "Douglas v. Ad Astra Info. Sys., LLC" on Justia Law

This appeal raised the issue of whether a district court can order a child support obligor to cooperate with a child support obligee in the obligee's efforts to obtain insurance on the obligor's life if the obligor objects to the issuance of the life insurance policy. Here, despite the obligor's objection, the district court ordered the obligor to cooperate with the obligee's attempts to obtain insurance on the obligor's life at the obligee's own expense. The court of appeals affirmed. The Supreme Court reversed, holding that a district court cannot issue such an order because the order would be contrary to public policy as expressed by the Kansas Legislature in Kan. Stat. Ann. 40-453(a), which provides that an insurable interest does not exist if a person whose life is insured makes a written request for the termination or nonrenewal of the policy. View "In re Marriage of Hall" on Justia Law

In the garnishment action below, Plaintiffs sought to collect the consent judgments they had previously obtained in settlement of their tort actions against Americold Corporation, which was insured by Northwestern Pacific Indemnity Company (NPIC). NPIC, the garnishee in the instant action, appealed the district court's adverse rulings, contending that the underlying judgments against Americold had become dormant and extinguished, thus depriving the district court of subject matter jurisdiction to proceed with this garnishment action. Finding in favor of NPIC on that issue, the Supreme Court reversed, holding (1) when the district court entered its judgment against NPIC in this garnishment proceeding, Plaintiffs' underlying consent judgments against Americold had been extinguished by operation of the dormancy and revivor statutes; (2) because Americold was not legally obligated to pay an unenforceable judgment, NPIC was no longer indebted to Americold under its contract to pay the judgments for which Americold was legally liable; and (3) accordingly, without an indebtedness from NPIC to Americold, the district court lacked subject matter jurisdiction to grant Plaintiffs judgment against NPIC in a garnishment proceeding. Remanded with directions to dismiss these garnishment proceedings.

John Brennan sued his physician, who had a $200,000 professional liability insurance policy, for medical malpractice. The insurer was declared insolvent after Brennan filed his claim but before he recovered. The insurer's insolvency triggered the Kansas Insurance Guaranty Association's (KIGA) statutory obligation to cover the insurer's obligations to the extent provided by the Kansas Insurance Guaranty Association Act. KIGA, which intervened in the suit, denied liability because Brennan received medical reimbursements from his personal health insurance policy that totaled more than the insolvent insurer's policy limits. The dispositive issue was whether Brennan's due process rights were violated by a retroactive statutory amendment permitting KIGA to offset Brennan's personal health insurance benefits against its liability on the insolvent insurer's $200,000 policy. The district court declared the statute's retroactive feature unconstitutional and entered judgment against KIGA for $200,000. The Supreme Court affirmed, holding (1) the retroactivity provision violated due process, and (2) Brennan's rights were governed by the preamended statute.