Justia Insurance Law Opinion Summaries

In October 2020, Elliot Fama, employed by Sanford Contracting, was working on a project in Scarborough, Maine. After work, he and his co-worker, Robert Clarke, consumed alcohol at a hotel and a tavern. Later, in the hotel parking lot, Clarke struck Mr. Fama, causing him to fall and sustain fatal injuries. Laureen Fama, Mr. Fama’s widow, settled a workers’ compensation claim in Massachusetts for $400,000.Laureen Fama then filed a lawsuit in Cumberland County Superior Court against Bob’s LLC, which operated the tavern, and Clarke. She alleged liquor liability, wrongful death, loss of consortium, and battery. The defendants moved for summary judgment, arguing that the workers’ compensation settlement precluded the lawsuit. The Superior Court denied these motions, leading to the current appeal.The Maine Supreme Judicial Court reviewed the case. It held that under Maine’s Workers’ Compensation Act (MWCA), Ms. Fama’s settlement barred her from suing Clarke, as the Act’s immunity provisions extend to co-employees. Consequently, Clarke was exempt from the lawsuit. The court further held that because Clarke could not be retained as a defendant, the claims against Bob’s LLC failed under the “named and retained” provisions of Maine’s Liquor Liability Act (MLLA).The court vacated the Superior Court’s order denying summary judgment and remanded the case for entry of judgment in favor of Bob’s LLC and Clarke. View "Fama v. Bob's LLC" on Justia Law

The case revolves around a dispute between MMG Insurance Company (MMG) and the Estate of Philip J. Greenlaw. The dispute arose after the death of Philip Greenlaw, who died while wrestling with his friend, Joseph McNeely. Prior to the incident, McNeely, who operated a landscaping business, had visited Greenlaw's house to provide an estimate for a landscaping project. The visit was part of an informal social gathering where business-related topics were often discussed. After the incident, the Estate filed a wrongful death action against McNeely. MMG, which had issued a business insurance policy to McNeely, sought a declaratory judgment that it had no duty to indemnify McNeely in the wrongful death action.The Superior Court (Cumberland County) granted MMG's motion for summary judgment, determining that McNeely was not covered as an insured under MMG’s business insurance policy because his actions while wrestling with Greenlaw were not related to the conduct of his landscaping business. The Estate appealed this decision, arguing that there were triable issues of fact regarding whether Greenlaw’s death occurred with respect to the conduct of McNeely’s business.The Maine Supreme Judicial Court affirmed the lower court's judgment. The court found that the insurance policy provision was unambiguous and that McNeely was covered as an insured only with respect to the conduct of his business. The court also agreed with the lower court's determination that there was no genuine issue of material fact and that McNeely’s actions while wrestling with Greenlaw were not related to the conduct of his landscaping business. Despite the business-related discussions and activities that occurred earlier in the evening, the court concluded that McNeely's wrestling actions were not taken with respect to the conduct of his business. View "MMG Insurance Company v. Estate of Greenlaw" on Justia Law

The Supreme Judicial Court affirmed the summary judgment entered in the business and consumer court in favor of UIG, Inc. on Yankee Pride Transportation and Logistics, Inc.'s claims of negligence, breach of contract, and breach of fiduciary duty, holding that there was no genuine issue of material fact as to causation.On appeal, Yankee Pride argued that it had an implied contract with UIG based on the parties' relationship and that UIG breached that contract by failing to make timely efforts to renew Yankee Pride's policy. The Supreme Judicial Court disagreed, holding that Yankee Pride's failure to offer competent evidence of causation precluded a prima facie showing on any of its claims, whether they sounded in contract, tort, or breach of fiduciary duty. View "Yankee Pride Transportation & Logistics, Inc. v. UIG, Inc." on Justia Law

The Supreme Judicial Court affirmed the decision of the appellate division of the Workers' Compensation Board affirming the decision of an administrative law judge (ALJ) granting Plaintiff's petition for award of compensation, holding that an employee is not required to give notice of his occupational disease claim to his former employer's insurer when the employer no longer exists.Nearly twenty years after retiring from his employment Plaintiff underwent surgery for lung cancer and was later diagnosed with asbestosis. Plaintiff filed five petitions for award of compensation, each alleging a different date of injury and naming and different employer and insurer pairing. The ALJ (1) found that Plaintiff's last injurious exposure to asbestos occurred when he was working for Auburn Sheet Metal, which was insured by Maine Employers' Mutual Insurance Company (MEMIC) but no longer existed, and (2) granted Plaintiff's petition for an award of compensation. The appellate division concluded that Plaintiff was not required to provide notice to MEMIC. The Supreme Court affirmed, holding that the appellate division did not err in concluding that the workers' compensation statute does not impose on an injured employee whose employer no longer exists the duty to give notice to the insurer. View "Desgrosseilliers v. Auburn Sheet Metal" on Justia Law

The Supreme Judicial Court affirmed the judgment of the superior court in this insurance dispute, holding that the superior court properly entered summary judgment in favor of 21st Century Centennial Insurance Company and 21st Century Insurance and Financial Services, Inc. (collectively, 21st Century).Collette Boure and Alexander Meyers took the car of Nancy Snow, Meyers's great aunt, and fled Maine to begin a drive across the country. While the teenage couple was in Oklahoma, they crashed in a chase with police, resulting in Boure's death. Boure's Estate sought uninsured motorist coverage from Concord General Mutual Insurance Company (Concord) on a personal auto policy issued to him and from 21st Century on a personal auto policy issued to Meyers's great aunt. After both insurers denied coverage Concord brought a declaratory judgment action against the Estate. The Estate counterclaimed against Concord and brought a separate action against 21 Century. The court granted summary judgments in favor of Concord and 21st Century. The Supreme Judicial Court affirmed, holding (1) the Estate's appeal of the summary judgment in favor of Concord was untimely; and (2) the court properly entered summary judgment in favor of 21st Century. View "Concord General Mutual Insurance Co. v. Estate of Collette J. Boure" on Justia Law

The Supreme Judicial Court affirmed the superior court's summary judgment entered in favor of Metropolitan Property and Casualty Insurance Company as to Progressive Northwest Insurance Company's complaint seeking indemnification for a portion of a final settlement paid involving a mutually-insured party, Vincent Micale, holding that there was no error.Micale rented two jet skis from Jet Ski Guys, Inc. (JSG). Two individuals listed on Micale's rental agreement collided while operating the jet skis, resulting in injuries to one individual. At the time of the accident, Progressive provided a boat and personal watercraft liability insurance policy to Micale, and Metropolitan provided homeowner insurance to Micale. JSG filed a complaint alleging that Micale and others were negligent in the operation of the jet skis. The injured individual filed a cross-claim against Micale. In a settlement, Progressive agreed to pay $300,000 to the injured individual on Micale's behalf. Progressive then sued Metropolitan, arguing that Metropolitan had a duty to indemnify Micale for half the amount that Progressive had paid to the injured individual. The court entered judgment in Metropolitan's favor. The Supreme Judicial Court affirmed, holding that the plain meaning of Metropolitan's policy did not provide coverage for injuries arising out of the use of the watercraft involved in the accident. View "Progressive Northwest Insurance Co. v. Metropolitan Property & Casualty Insurance Co." on Justia Law

The Supreme Judicial Court vacated the judgment of the superior court dismissing for failure to state a claim Corinth Pellets, LLC's complaint alleging that a fire loss at Corinth's wood pellet mill was covered under a commercial property insurance policy issued by Arch, holding that the superior court erred in its interpretation of Maine's surplus lines insurance law, Me. Rev. Stat. 24-A, 2009-A.On appeal, Corinth argued that the fire loss was covered under the policy, despite having occurred after the policy term had expired, because Arch failed notify Corinth of its intention not to renew the policy as required by section 2009-A, and therefore, the policy was automatically renewed at the end of the term. The Supreme Judicial Court vacated the judgment, holding that section 2009-A(1) requires a surplus lines insurer to give written notice of its intent either to cancel a policy or not to renew a policy at least fourteen days before the effective date of cancellation or nonrenewal. View "Corinth Pellets, LLC v. Arch Specialty Insurance Co." on Justia Law

The Supreme Judicial Court affirmed the summary judgment entered by the superior court in favor of Concord General Mutual Insurance Company on Arthur Bibeau's complaint for alleged breaches and violations of the homeowner's insurance policy issued to him by Concord, holding that the policy did not unambiguously exclude from coverage losses caused by earth movement.Bibeau insured his home through a policy issued to him by Concord. Bibeau submitted a notice of claim to Concord alleging that his home was damaged by a water line leak that pushed sand and other material under the foundation of his home. Concord denied the claim based on the policy's earth movement exclusion and its anti-concurrent-causation clause. Bibeau then brought this action. The superior court granted summary judgment for Concord on all counts. The Supreme Judicial Court affirmed, holding that the superior court did not err in determining that the policy was unambiguous and that Bibeau's losses were excluded from coverage pursuant to the earth movement exclusion. View "Bibeau v. Concord General Mutual Insurance Co." on Justia Law

The Supreme Judicial Court affirmed the decision of the superior court entering summary judgment in favor of State Farm Fire and Casualty Company on the complaint filed by Plaintiffs seeking to reach and apply the State Farm vehicle insurance coverage of a man found jointly and severally liable to Plaintiffs for damages, holding that the facts did not bring Plaintiffs' damages within the policy's coverage.Grover Bragg was driving a truck insured by State Farm to transport an intoxicated and delusional friend when the friend jumped out of the truck, broke into Plaintiffs' house, damaged property, and assaulted one of the plaintiffs. Plaintiffs brought a complaint against Bragg, alleging negligence, and against Bragg's friend. The court concluded that Bragg and his friend were jointly and severally liable to Plaintiffs and awarded damages. The Supreme Court affirmed. Plaintiffs then commenced the present action seeking to reach and apply Bragg's vehicle insurance policy and to obtain a declaratory judgment that the coverage applied. The court entered summary judgment for State Farm. The Supreme Court affirmed, holding that the injuries and property damage suffered by Plaintiffs were not causally connected to the vehicle use in a way that brought them within the insurance coverage. View "Haskell v. State Farm Fire & Casualty Co." on Justia Law

The Supreme Judicial Court affirmed the judgment of the superior court granting Progressive Casualty Insurance Company's motion for summary judgment and denying National Wrecker, Inc.'s (NWI) summary judgment motion, holding that a judgment obtained by NWI against Fred Muluya, Progressive's insured, was not covered by Muluya's automobile insurance contract.After an accident involving Muluya's truck NWI filed a complaint against Muluya seeking payment of its invoice for towing fees, storage fees, and costs associated with clean-up of the accident. The superior court awarded NWI $26,540 in total damages. Muluya carried a commercial auto insurance policy with Progressive. NWI filed a claim against Progressive seeking recovery of the judgment it obtained against Muluya. The superior court granted Progressive's motion for summary judgment, concluding that the policy did not cover NWI's judgment. The Supreme Judicial Court affirmed, holding that Progressive was entitled to judgment as a matter of law because NWI did not establish that its judgment against Muluya was for covered damage. View "National Wrecker, Inc. v. Progressive Casualty Insurance Co." on Justia Law