Justia Insurance Law Opinion Summaries

Articles Posted in Personal Injury
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The Supreme Court of the State of Montana affirmed a lower court decision that granted Dr. Gregory S. Tierney's motion to dismiss a medical malpractice lawsuit filed by Janice M. Dodds for insufficient service of process. Dodds initially filed the suit against Dr. Tierney and Benefis Health System in 2013, alleging medical malpractice related to a knee replacement surgery. She failed to serve the defendants in time. Dr. Tierney later filed for bankruptcy, which invoked an automatic stay, halting the lawsuit. After his bankruptcy discharge, Dodds attempted to serve Dr. Tierney but failed to do so within the required 30-day timeframe following the discharge.Dodds further sought to join Dr. Tierney's malpractice insurance company as the real party in interest, but the court denied the motion. Upon review, the Supreme Court found that Dodds had not proven Dr. Tierney's liability, thus the insurer had no duty to indemnify him. The court also rejected Dodds' argument that Dr. Tierney lacked standing after his Chapter 7 discharge. The court held that Dr. Tierney maintained a personal stake in demonstrating he was not liable for medical malpractice and that his insurer would only have a duty to indemnify him once Dodds proved her malpractice claims. View "Dodds v. Tierney" on Justia Law

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In 2021, a warehouse developed by TriStar Companies, LLC but possessed by Amazon collapsed during a tornado, causing injuries and deaths. Several personal injury and wrongful death lawsuits were filed against TriStar, claiming negligence in the warehouse's construction. TriStar, insured by AXIS Surplus Insurance Company, sought coverage under their policy, but AXIS denied coverage and filed a complaint for a declaratory judgment that it had no duty to defend or indemnify TriStar for the resulting lawsuits. The district court granted AXIS's motion for summary judgment, ruling that the insurance policy did not cover the warehouse due to certain exclusions and limitations.Upon appeal, the United States Court of Appeals for the Eighth Circuit affirmed the lower court's decision. The Court of Appeals applied Missouri law, giving the insurance policy terms "the meaning which would be attached by an ordinary person of average understanding if purchasing insurance." The court found that the policy's language was clear and unambiguous. It limited coverage to premises owned, rented, or occupied by TriStar per a schedule of locations on file with AXIS. As the warehouse's location was not listed in the schedule, and TriStar did not own, rent, or occupy the warehouse when the incident occurred, the court concluded that the policy did not cover the incident.The court rejected TriStar's interpretation of the schedule of locations, which would have resulted in coverage extending to an entire city, as untenable and against common sense. Therefore, AXIS had no duty to defend or indemnify TriStar for the lawsuits arising from the warehouse collapse. View "Axis Surplus Insurance Company v. TriStar Companies, LLC" on Justia Law

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In this case, the United States Court of Appeals for the Eleventh Circuit had to apply Florida tort law to a dispute concerning the collapse of a crane boom. The plaintiff, NBIS Construction & Transport Insurance Services, Inc., an insurer of the crane's owner, sued the defendants, Liebherr-America, Inc., a distributor and servicer of the type of crane in question, for over $1.7 million in damages resulting from the collapse. The defendants argued that they were shielded from liability by Florida’s economic loss rule. The magistrate judge, after a five-day bench trial, rejected this argument. The court of appeals found Florida law unclear on this issue and certified a question to the Florida Supreme Court.The facts of the case involved a crane purchased by Sims Crane & Equipment Company from a non-party broker, which was manufactured by Liebherr Werk Ehingen GMbH. Two Sims crane operators received training from a Liebherr-America employee, which involved swapping out different configurations of the crane boom. However, the training was inadequate and did not provide sufficient information about the proper placement of specific pins which, if misadjusted, could cause the crane boom to collapse. When the crane boom did collapse during a construction project, causing a fatality and damage to the crane, NBIS filed a negligence suit against Liebherr-America.The key issue in the case was whether Florida’s economic loss rule, which generally limits recovery in tort cases to situations where there is damage to other property or personal injury, and not just economic loss, applied in this case. The defendants argued that the rule should apply because the plaintiff’s negligence claims were akin to failure to warn theories found in products liability law, which fall within the scope of the rule. The plaintiff argued that the rule should not apply because this was not a product liability case asserting a product defect, but rather a case alleging negligent services provided by the defendants. Because the court found Florida law unclear on this issue, it certified the question to the Florida Supreme Court. View "NBIS Construction & Transport Insurance Services, v. Liebherr-America, Inc." on Justia Law

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In this case heard before the Supreme Court of Kentucky, the primary issue was whether the Breathitt Circuit Court correctly dismissed Teresa Spicer's lawsuit against James Combs for intentional infliction of emotional distress (IIED). Spicer's suit arose from damages linked to Combs' actions, following a fatal ATV accident which resulted in the death of Tiara Combs, James Combs’ wife and Spicer's daughter. Prior to the lawsuit, Combs and Spicer, as co-administrators of Tiara's estate, had signed a release settlement with Progressive Casualty Insurance Company, effectively absolving both Combs and Progressive of any further liability relating to the accident.After learning that Combs was intoxicated at the time of the accident, a fact he allegedly hid from her, Spicer sought to sue Combs personally for IIED. Combs moved to dismiss Spicer's complaint on the grounds that the previous release signed by Spicer barred her claim, and that her complaint did not meet the standard for an IIED claim. The circuit court dismissed the action, holding that the release was intentionally broad and included all potential claims, including IIED.On appeal, the Court of Appeals reversed the dismissal, ruling that the release did not prevent Spicer from asserting a personal cause of action against Combs. The Supreme Court of Kentucky affirmed the Court of Appeals' decision. The court ruled that the language of the release only covered claims possessed by the estate and not Spicer's individual claims. Furthermore, the Court held that Spicer's complaint was sufficient to proceed under a motion to dismiss for failure to state a claim, leaving it to the circuit court to resolve whether Spicer can sufficiently establish her claim at a later time. View "COMBS V. SPICER" on Justia Law

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Cynthia Bowen purchased an insurance policy from Farm Bureau Property & Casualty Insurance Company ("Farm Bureau") for her pick-up truck. She was injured when an employee of Menard, Inc. ("Menards") accidentally dropped a large board on her while helping load her truck at a store. Bowen sued Menards for damages, alleging negligence. Menards then filed an action against Farm Bureau seeking a declaratory judgment that it was entitled to a defense and indemnification from Farm Bureau under Bowen's insurance policy. The district court ruled in favor of Menards, finding that Menards and its employee were covered insureds under the policy and that no policy exclusion applied.On appeal, the United States Court of Appeals for the Eighth Circuit reversed the district court's decision. The court concluded that the policy's "Intrafamily Immunity" exclusion applied to the case. This exclusion stated that there was no coverage for any bodily injury to any "insured," which, in this case, included both Bowen and Menards. Therefore, the policy provided no liability coverage for Bowen's claim against Menards, another insured party. The court rejected the district court's reasoning that the term "intrafamily" limited the application of the exclusion, finding that the plain meaning of the operative policy provision prevailed. The court also rejected Menards' argument that Farm Bureau was estopped from asserting this defense to coverage. Consequently, the court reversed the district court's judgment, ruling that Farm Bureau was not obligated to provide defense and indemnification for Menards in connection with the lawsuit brought by Bowen. View "Menard, Inc. v. Farm Bureau P&C Ins. Co." on Justia Law

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In this case, the South Carolina Supreme Court was asked to decide whether the requirement for a witness affidavit under subsection 38-77-170(2) of the South Carolina Code should be considered a condition precedent to filing a "John Doe" civil action. The case arose from a car accident where the plaintiff, Peter Rice, filed a lawsuit against an unidentified driver, referred to as "John Doe." Rice alleged that Doe's vehicle crossed into his friend's lane, causing his friend to swerve and hit a tree. Under South Carolina law, it's possible to recover damages under an uninsured motorist policy for accidents caused by unidentified drivers. However, the law requires that the accident must have been witnessed by someone other than the owner or operator of the insured vehicle and that the witness must sign an affidavit attesting to the truth of the facts of the accident. Doe moved to dismiss the case on the grounds that Rice had failed to comply with the requirement for a witness affidavit at the time of filing his complaint. The lower court initially denied Doe's motion, but later another judge ruled that the affidavit was a condition precedent to the right to bring an action and dismissed the case. The court of appeals reversed this decision, finding that the second judge did not have the authority to overrule the first judge's decision. On review, the South Carolina Supreme Court held that compliance with the witness affidavit requirement is not a condition precedent to filing a "John Doe" civil action. Rather, the court found that the witness affidavit may be produced after the commencement of the lawsuit. However, the court noted that the affidavit should be produced promptly upon request and if it is not, the action could be dismissed pursuant to Rule 56(c) of the South Carolina Rules of Civil Procedure. The Supreme Court therefore affirmed the decision of the court of appeals, albeit on different grounds, and remanded the case for trial. View "Rice v. Doe" on Justia Law

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In the State of Oregon, a woman whose husband was accidentally shot and killed during a camping trip filed a lawsuit against her husband's life insurance company. The woman claimed that the insurance company negligently failed to investigate and pay her claim for policy benefits, causing her economic harm and emotional distress. The trial court granted the insurance company's motions to dismiss the woman's negligence claim and to strike her claim for emotional distress damages. The Court of Appeals reversed the trial court's decision, and the insurance company appealed the case to the Supreme Court of Oregon.The Supreme Court of Oregon affirmed the decision of the Court of Appeals. The court held that the woman had pleaded facts sufficient to give rise to a legally cognizable common-law negligence claim for emotional distress damages. The court reasoned that the woman, as the surviving spouse of a deceased breadwinner, had a legally protected interest sufficient to support a common-law negligence claim for emotional distress damages against her husband's life insurance company for failure to reasonably investigate and promptly pay her claim for insurance benefits. The court concluded that the insurance claim practices that Oregon law requires and the emotional harm that foreseeably may occur if that law is violated are sufficiently weighty to merit imposition of liability for common-law negligence and recovery of emotional distress damages. Therefore, the Supreme Court of Oregon reversed the judgment of the trial court and remanded the case back to the trial court for further proceedings. View "Moody v. Oregon Community Credit Union" on Justia Law

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The Supreme Court vacated the judgment of the intermediate court of appeals (ICA) reinstating the jury's verdict and judgment for Tiare Franco's family (the Francos) after granting Sabio Reinhardt's motion to set aside the jury verdict and judgment, holding that the ICA erred.The Francos brought a wrongful death lawsuit against Reinhardt for negligently crashing a truck and killing Tiare. National Interstate Insurance Company (NIIC), the truck's insurer, filed a declaratory judgment action claiming it had no duty to defend and indemnify Reinhardt under the policy. The circuit court granted summary judgment for NIIC, and the Francos successfully appealed. Before the ICA resolved the declaratory action appeal, the circuit court held a jury trial, and the jury returned a verdict in favor of the Francos. Counsel for Reinhardt moved to set aside the jury's verdict. The trial court granted the Francos' ensuing motion to disqualify counsel and Reinhardt's motion to set aside the jury verdict and judgment. The ICA reinstated the jury's verdict and judgment, holding that Reinhardt's counsel lacked authority to act as his lawyer. The Supreme Court vacated the ICA's judgment and affirmed the circuit court's orders, holding that the circuit court correctly denied the Francos' motion to disqualify counsel and did not abuse its discretion by granting Reinhardt's motion to set aside. View "Franco v. Reinhardt" on Justia Law

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Guiracocha and his son, Cristopher, filed an uninsured motorist (UM) claim against Direct Auto, stemming from a hit-and-run incident where 14-year-old Cristopher was struck by a vehicle while riding his bicycle. They asserted Fredy was the named insured under an automobile insurance policy issued by Direct Auto and that UM coverage applied to Cristopher based on his status as a “relative” under the policy. Direct Auto denied coverage because Cristopher was not an occupant of a covered vehicle at the time of the accident and sought a declaratory judgment. The circuit court granted Direct Auto summary judgment.The appellate court reversed, holding that a provision in an automobile insurance policy that limits UM coverage to insureds occupying an insured automobile violates the Illinois Insurance Code (215 ILCS 5/143a). The Illinois Supreme Court affirmed. Section 143a states that an insurance policy cannot be “renewed, delivered, or issued for delivery” in Illinois unless it provides coverage to “any person” for injuries “arising out of the ownership, maintenance or use of a motor vehicle.” A bicyclist injured by an uninsured motorist vehicle is a “person” who suffered injuries arising out of the ownership, maintenance, or use of “a motor vehicle.” The injured person’s status as an occupant of a vehicle is irrelevant. View "Galarza v. Direct Auto Insurance Co." on Justia Law

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Plaintiff Team Industrial Services, Inc. (Team) suffered a $222 million judgment against it in a wrongful-death lawsuit arising out of a steam-turbine failure in June 2018 at a Westar Energy, Inc. (Westar) power plant. Team sought liability coverage from Westar, Zurich American Insurance Company (Zurich), and two other insurance companies, arguing that it was, or should have been, provided protection by Westar’s Owner-Controlled Insurance Program (OCIP) through insurance policies issued by Zurich and the two other insurers. Team’s claims derived from the fact that its liability for the failure at the Westar power plant arose from work that had previously been performed by Furmanite America, Inc. (Furmanite), which had coverage under Westar’s OCIP. The district court granted summary judgment to Defendants, and Team appealed. Not persuaded by Team's arguments for reversal, the Tenth Circuit affirmed the district court. View "Team Industrial Services v. Zurich American Insurance Company, et al." on Justia Law