Justia Insurance Law Opinion Summaries

Ron Warren, individually and on behalf of the Estate of Derek Hebert, filed a petition for damages seeking to recover for the wrongful death of his son in a recreational boating accident under general maritime law and products liability. A jury found the defendant, Teleflex, Inc. liable under the plaintiff’s failure to warn theory of the case and awarded compensatory damages of $125,000 and punitive damages of $23,000,000. The court of appeal affirmed. The Louisiana Supreme Court granted certiorari mainly to review whether the trial court properly granted the plaintiff a new trial and whether the award of punitive damages was excessive and resulted in a violation of the defendant’s right to constitutional due process. After reviewing the record and the applicable law in this case, the Supreme Court found no reversible error in the trial court’s rulings; however, the Court did find the award of punitive damages was excessive and resulted in a violation of the defendant’s right to constitutional due process. View "Warren v. Shelter Mutual Ins. Co." on Justia Law

Plaintiff Greggory Owings sustained an on-the-job injury, for which he received long-term disability benefits by defendant United of Omaha Life Insurance Company (United), under the terms of a group insurance policy issued by United to Owings’ employer. Owings disagreed with, and attempted without success to administratively challenge, the amount of his disability benefits. He then filed suit against United in Kansas state court, but United removed the action to federal district court, asserting that the federal courts had original jurisdiction over the action because the policy was governed by the Employee Retirement Income Security Act of 1974 (ERISA). The district court ultimately granted summary judgment in favor of United. Owings appealed. The Tenth Circuit concluded after review of this matter that United was arbitrary and capricious in determining the date that Owings became disabled and, in turn, in calculating the amount of his disability benefits. Consequently, the Court reversed the district court’s grant of summary judgment in favor of United and remanded with directions to enter summary judgment in favor of Owings. View "Owings v. United of Omaha Life" on Justia Law

Defendant Travelers Indemnity Company of Connecticut ("Travelers") appealed a circuit court’s denial of its post-judgment motion seeking to set aside judgment entered on a jury verdict in favor of plaintiff Angela Worthington. Worthington was a passenger in a vehicle being driven by her husband. A friend of the Worthingtons and the Worthingtons' two minor children were also passengers in the vehicle. While the Worthingtons' vehicle was stopped at a nonfunctioning traffic light, it was struck in the rear by a vehicle being operated by Camille Thomas. Worthington and the other occupants in her vehicle were injured as a result of the accident. At the time of the accident, the company Worthington's husband owned had a comprehensive insurance policy with Travelers that included uninsured-motorist ("UM") and underinsured-motorist ("UIM") coverage. The Worthingtons sued Thomas and Travelers; the complaint included a UM/UIM claim against Travelers. After review of the claims Travelers made on appeal, the Alabama Supreme Court determined Travelers did not establish that the trial court erred in denying the post-judgment motion, and affirmed. View "Travelers Indemnity Company of Connecticut v. Worthington" on Justia Law

This case arose from a motor vehicle accident in 2012. William Taylor was driving a vehicle owned and insured by Guy's Seed Company (Guy's Seed); Appellant Mark Raymond was a passenger in the vehicle driven by Taylor. Both Raymond and Taylor were employees of Guy's Seed. Appellee American Mercury Insurance Company (Mercury) issued a commercial automobile insurance policy to Guy's Seed which provided uninsured/under-insured motorist (UM) coverage of $1,000,000 per accident. Larry Bedell was an employee of BlueKnight Energy Partners (BlueKnight); BlueKnight carried a $1,000,000 primary automobile liability policy and a $40,000,000 excess liability policy. Bedell was driving an oil tanker truck, owned by BlueKnight, and attempted to turn in front of the Guy's Seed vehicle causing a collision. The collision caused an immediate explosion, which resulted in Taylor's death and Raymond suffering significant permanent injuries. Raymond qualified as insured under Mercury's UM coverage. Raymond filed suit against Defendants, Bedell and BlueKnight. Mercury investigated and offered the UM policy limits to Raymond's and Taylor's representatives, paying $500,000 to each. Mercury then intervened in Raymond’s court case seeking subrogation from Defendants for the $500,000 payment made to Raymond under the UM policy. Raymond disputed Mercury's right to subrogation, but Defendants refused to settle unless the settlement amount was inclusive of Mercury's disputed subrogation claim. An agreement was reached where Raymond settled with Defendants for a confidential amount greater than the primary insurance liability limits but less than the excess policy; Defendants paid Raymond the amount of the settlement minus the $500,000 claimed by Mercury. The disputed $500,000 was to be held until there was an agreement or court order as to who was entitled to the funds. The question presented for the Oklahoma Supreme Court’s review centered on whether Mercury was entitled to subrogation for the $500,000 paid. The Supreme Court determined that contrary to Mercury's claims, Raymond was not receiving a windfall here. “Mercury was paid a premium for UM protection and Raymond recovered an amount not covering all of his damages within the limits of the primary liability policy and the UM policy. Raymond has also recovered an amount from the tort-feasor's other assets that, combined with the liability and UM funds, covered his damages. It would be unjust to permit Mercury to avoid its liability with its claim that the tort-feasor's other assets, that happened to be an excess liability policy, removed Mercury's liability thus denying Raymond from receiving that for which Mercury was paid a premium.” View "Raymond v. Taylor" on Justia Law

In this subrogation action filed by Educators Mutual Insurance Association (EMIA) against a tortfeasor in a personal injury case, the Supreme Court reversed the court of appeals’ dismissal for lack of standing. The court of appeals ruled that an insurer may file suit for subrogation only in the name of its insured, and not in its own name. The Supreme Court upheld EMIA’s standing to sue for subrogation in its own name under the terms of the insurance policy where the terms of the insurance policy at issue in this case expressly recognized EMIA’s authority “to pursue its own right of subrogation against a third party” without regard to whether the insured “is made whole by any recovery.” View "Wilson v. Educators Mutual Insurance Ass’n" on Justia Law

The Supreme Court affirmed the circuit court’s order rejecting the Board of Trustees of the Kentucky Schools Boards Insurance Trust’s (KSBIT) claim of governmental immunity and thus denying its motion for summary judgment. In this complaint filed by the Deputy Rehabilitator of the Kentucky School Boards Trust Workers’ Compensation Self-Insurance Fund and of the Kentucky School Boards Insurance Trust Property and Liability Self Insurance Fund against the KSBIT Board for, inter alia, negligence, the KSBIT Board asserted a defense of governmental immunity and moved for summary judgment. The circuit court determined that the KSBIT Board was not entitled to governmental immunity because its “parent” entity was not an agency of state government that enjoyed governmental immunity and because it did not perform a function that was integral to state government. The Supreme Court affirmed, holding (1) because the KSBIT Board is not the offspring of local public school boards, it does not have the governmental immunity accorded to those governmental bodies; and (2) the KSBIT Board does not serve a function integral to state government. View "Board of Trustees of Kentucky School Boards Insurance Trust v. Pope" on Justia Law

Defendant Arch Specialty Insurance Company (Arch) appealed multiple superior court orders granting summary judgment to defendants Triage Staffing, Inc. (Triage), Exeter Hospital, Inc. (Exeter), and American Healthcare Services Association (AHSA) on their petitions for declaratory judgment, and denying Arch’s cross-motion for summary judgment. The court ruled that Arch was required to defend and indemnify Triage, Exeter, and AHSA, pursuant to two insurance policies that Arch issued to Triage, for claims asserted against the defendants by patients of Exeter who contracted Hepatitis C (Exeter Patients). On appeal, Arch argued the trial court erred in finding inapplicable certain exclusions found in the insurance policies and in determining that the claims involved multiple occurrences under the policies. After review, the New Hampshire Supreme Court reversed the superior court’s grant of summary judgment in favor of Triage and Exeter regarding Arch’s duty to defend and indemnify them pursuant to the general liability coverage forms; the Court reversed the trial court’s grant of summary judgment in favor of Exeter regarding Arch’s duty to defend and indemnify it pursuant to the umbrella coverage forms; reversed in part and vacated in part the trial court’s grant of summary judgment in favor of Triage regarding Arch’s duty to defend and indemnify it pursuant to the umbrella coverage forms, and remanded all matters to the trial court for further proceedings. View "Massachusetts Bay Insurance Company v. American Healthcare Services Association" on Justia Law

Hershel Easterling, both individually and as the personal representative of the estate of Charlotte Easterling, appealed the grant of a summary judgment in favor of Progressive Specialty Insurance Company ("Progressive") on his claims seeking uninsured/underinsured-motorist ("UIM") benefits. In December 2014, Hershel and his wife, Charlotte Easterling, were injured when their vehicle was rear-ended by a vehicle driven by Ashley McCartney. In April 2015, the Easterlings sued McCartney, alleging she behaved negligently and/or wantonly at the time of the accident. The Easterlings' complaint also named Progressive, their insurer, as a defendant and included a count seeking to recover UIM benefits from Progressive. The Alabama Supreme Court reversed and remanded for further proceedings, finding that by virtue of her bankruptcy filing, McCartney was not been relieved of legal liability for the harm she caused Hershel; instead, Hershel could prove the merits of his claim but was merely prevented by law from seeking to collect damages from McCartney for that harm even after his legal entitlement to recover those damages has been established. Any injunction against proceeding directly against the debtor, therefore, in no way extends to Hershel's own insurer. The trial court erred in entering a summary judgment in favor of Progressive on Hershel's UIM claim. View "Easterling v. Progressive Specialty Insurance Co." on Justia Law

The Supreme Court reversed the judgment of the circuit court concluding that McKinley Chiropractic Center, P.C. (McKinley) was entitled to judgment against Erie Insurance Company (Erie). Devonta Dodson was involved in a motor vehicle collision with Joann Hutson. Erie insured Hutson with liability coverage under an automobile insurance company. Dodson, who sought chiropractic care for her injuries arising from the collision, executed a document assigning to McKinley all insurance and/or litigation proceeds to which she may be entitled and all causes of action she might have against Erie. Dodson subsequently accepted $7,300 from Erie in return for Dodson’s agreement to release both Hutson and Erie from causes of action arising from the claimed legal liability of Hutson and Erie arising out of the accident. McKinley subsequently filed a warrant in debt against Erie. The district court rendered judgment for the chiropractic services provided to Dodson. The circuit court affirmed. The Supreme Court reversed, holding that, as a matter of law, McKinley did not have a right to sue Erie. View "Erie Insurance Co. v. McKinley Chiropractic Center, P.C." on Justia Law

Larry Hurst was killed and Sara Hurst was seriously injured while riding their bicycles after a vehicle driven by Hannah Terry struck each of their bicycles. The Hurst filed a claim with their uninsured motorist insurance carrier, Metropolitan Property and Casualty Insurance Company (MetLife), which contended that the injuries to the Hursts were the result of one accident, resulting in a maximum of $300,000 in coverage. The Hursts, however, argued that their injuries were the result of two accidents, warranting $600,000 in coverage. The district court granted summary judgment in favor of MetLife, concluding that there was only one accident for purposes of determining the amount of uninsured motorist coverage. The Supreme Court reversed, holding that the record was insufficient for a legal conclusion as to whether Terry maintained or regained control of her vehicle during the collisions with the Hursts, and therefore, summary judgment was improperly granted and the matter must be remanded for trial. View "Hurst v. Metropolitan Property & Casualty Insurance Co." on Justia Law