Justia Insurance Law Opinion Summaries

Debra Jarvis was driving a bus owned by Lake Shore Motor Coach Lines, Inc. when she experienced a sudden and unforeseeable loss of consciousness. Her loss of consciousness caused the bus to roll over, injuring several passengers. Some of the injured passengers filed separate lawsuits in a Utah court seeking damages. Two of the plaintiffs moved for partial summary judgment, asserting that Lancer Insurance Co., Lake Shore’s insurer, was strictly liable for the passengers’ injuries under Utah Code 31A-22-303(1). The motions were denied. Lancer Insurance filed a separate federal case seeking a declaratory judgment confirming the state district court’s interpretation of Utah Code section 31A-22-303(1), thus reinforcing the conclusion that this provision preserves the common-law “sudden incapacity” defense and requires proof of fault to sustain liability. The federal district court certified two questions to the Supreme Court regarding the proper interpretation of section 31A-22-303(1). The Supreme Court answered (1) section 31A-22-303(1) overrules the common-law doctrine of sudden incapacity in a manner imposing strict liability on a driver (and her insurer); and (2) a driver (and her insurer) is subject to liability only up to the amount of the insurance coverage available under an applicable policy. View "Lancer Insurance Co. v. Lake Shore Motor Coach Lines, Inc." on Justia Law

Plaintiff-appellant Malinda Falcone brought an insurance claim against defendants-appellees for payment of her emergency room medical expenses. Her claim was made pursuant to the Uninsured/Underinsured Motorist (UM) provisions of her mother's automobile insurance policy following the injuries she sustained as a passenger in her mother's car when an uninsured driver ran a stop sign and collided with them. Defendants initially questioned the decision to refer Plaintiff to the level 2 trauma center of the emergency room and refused to pay the bill Plaintiff received from the OU Medical Center trauma center. After nearly a year of offers and rejections, Plaintiff sued for breach of the implied duty of good faith and fair dealing for failing to pay her trauma room "compensatory damages" as required under the policy. The trial court granted summary judgment in favor of defendants and denied Plaintiff's motion for new trial. After review, the Supreme Court held that it was a question for the trier of fact whether defendants showed a lack of good faith in handling Plaintiff's claim for payment. The trial court erred in granting summary judgment in defendants' favor, holding as a matter of law that defendants did not commit the tort of bad faith. View "Falcone v. Liberty Mutual Ins. Co." on Justia Law

After Leigh Anne Flores injured plaintiff in an auto accident, plaintiff filed suit against Flores and Pacific Bell, her employer, for damages. Flores was driving a van Pacific Bell had furnished to her, but that she used for both business and personal purposes. The trial court found Pacific Bell, who self-insured the van, was not vicariously liable for Flores's actions because she was not acting in the course and scope of her employment at the time of the accident. In a subsequent arbitration involving only plaintiff and Flores, plaintiff was awarded over half a million dollars by the arbitrator. Geico, Flores's personal insurer, refused to pay the judgment. Plaintiff then filed suit against Geico, alleging breach of contract, bad faith, and declaratory relief. The trial court granted summary judgment for Geico. The court concluded that, under the circumstances here, because Flores was able to use the van for both business and personal purposes, and her personal use of the van at the time of the accident was not a departure from its customary use, the van was furnished to Flores for her regular use and there is no coverage under the GEICO policy. Accordingly, the court affirmed the judgment. View "Medina v. GEICO Indemnity" on Justia Law

Warren and Johanna Grimes appealed a declaratory judgment holding that a liability policy issued by Alfa Mutual Insurance Company ("Alfa") did not provide coverage for a user of an automobile who did not have the express permission of the owner or drivers covered by the policy. Teresa Boop added liability coverage and uninsured/underinsured-motorist coverage for a pickup truck to her automobile insurance with Alfa. Boop also added her minor son as a driver under the policy. Amy Arrington was operating the pickup truck when it collided with a vehicle owned and occupied by the Grimeses. Both of the Grimeses suffered personal injuries as a result of the collision. The Grimeses’ insurer, Liberty Mutual, sued Arrington, alleging negligence and wantonness and seeking recovery of damages for the Grimeses' vehicle. Later the Grimeses sued Arrington and Boop, alleging negligence, wantonness, and negligent entrustment, and seeking damages for their personal injuries. Arrington filed answers, arguing that she was a covered person under the terms of Boop's policy with Alfa and that Alfa, therefore, should provide her with a defense in the Grimeses' action and in Liberty Mutual's action. The Supreme Court affirmed, finding that the trial court did not err in its conclusion that the Alfa policy did not provide coverage for a user of a motor vehicle who did not have the express permission of the owner or drivers who were covered. View "Grimes v. Alfa Mutual Ins. Co." on Justia Law

A driver lost control of his truck and crashed into a cabin, causing property damage and personal injuries to the cabin owner. The cabin owner brought suit against both the driver and the driver’s insurance company, alleging in part that the insurance company subsequently took charge of and negligently handled the fuel spill cleanup on the cabin owner’s property. The superior court granted the insurer summary judgment, concluding as a matter of law that the insurer could not owe the cabin owner an actionable duty. The cabin owner appealed, arguing that Alaska case law did not preclude a duty in this context. The Supreme Court agreed with the cabin owner and therefore reversed the superior court’s grant of summary judgment. View "Burnett v. Government Employee Ins. Co." on Justia Law

Natalie Heslop overdosed on prescription drugs. The next day, Natalie rolled her truck down an embankment. Natalie informed the responding police officer, medical personnel, her family, and an insurance adjuster that the accident had been a suicide attempt. Natalie’s insurance policy provided that it would exclude coverage to any injured person “if the person’s conduct contributed to his injury…by intentionally causing injury to himself.” Natalie and her husband, Brandon Heslop, attempted to collect from Bear River Mutual Insurance Company under both a personal injury protection claim for Natalie’s personal injuries and a property damage claim for damage to the truck. Bear River denied the claims based on Natalie's admission that she intended to drive down the embankment. The Heslops subsequently filed a complaint against Bear River. The district court granted summary judgment to Bear River as to both the personal injury claim and the property damage claim. The Supreme Court affirmed, holding that the district court did not err in granting summary judgment on the Heslops’ claims. View "Heslop v. Bear River Mutual Insurance Co." on Justia Law

This dispute centered on subrogation claims Victoria Insurance Company and Nationwide Insurance Company asserted against the City of Wilmington. This appeal presented a question of first impression before the Supreme Court: whether, under Delaware's motor vehicle insurance statute governing subrogation disputes among insurers and self-insurers, the losing party may appeal de novo to the Superior Court from an adverse arbitration award. In considering consolidated motions to dismiss two such appeals filed by the City against the insurers, the Superior Court determined that 21 Del. C. 2118(g)(3), which mandated arbitration for subrogation disputes arising between insurers and self-insurers, did not provide a right to appeal. Because the statute unambiguously provided for appeals from mandatory arbitration of subrogation disputes between insurers and self-insurers, the Supreme Court reversed. View "City of Wilmington v. Nationwide Insurance Co." on Justia Law

Bruce Evertson was killed in a two-vehicle accident during the course and scope of his employment. Bruce’s estate filed a wrongful death claim against the insurer of the other driver. The county court accepted a settlement in the matter and allocated the proceeds among Bruce’s widow, Darla Evertson, and adult children. Darla received workers’ compensation benefits from Travelers Indemnity Company as a result of Bruce’s death. Travelers filed a subrogation claim to Darla’s settlement proceeds. The county court ordered that Travelers was not entitled to any distribution of Darla’s proceeds and did not provide Travelers any future credit against the workers’ compensation benefits it owed Darla. The court of appeals affirmed. The Supreme Court vacated the decision of the court of appeals and remanded with directions to vacate the order of the county court, holding that the county court lacked subject matter jurisdiction to hear and decide the subrogation matter. View "In re Estate of Evertson" on Justia Law

Advent was the general contractor for the Aspen Village project in Milpitas. Advent subcontracted with Pacific, which subcontracted with Johnson. Advent was covered by a Landmark insurance policy and a Topa excess insurance policy. Johnson was covered by National Union primary and excess policies. Kielty, a Johnson employee, fell down an unguarded stairway shaft at the site and sustained serious injuries. Kielty sued Advent, which tendered its defense to its insurers and to National Union. National Union accepted under a reservation of rights. Kielty settled for $10 million. Various insurers, including Topa and National Union (under its primary policy), contributed to the settlement. National Union did not provide coverage under its excess policy. Advent sought a declaration that it was an “additional insured” under that excess policy. Topa intervened, seeking equitable contribution from National Union, and equitable subrogation. Advent dismissed its complaint with prejudice. Summary judgment was entered against Topa, for National Union. The court of appeal affirmed. While Topa’s policy was vague, National Union’s excess policy states that coverage will not apply until “the total applicable limits of Scheduled Underlying Insurance have been exhausted by the payment of Loss to which this policy applies and any applicable, Other Insurance have been exhausted by the payment of Loss.” View "Advent, Inc. v. National Union Fire Insurance Co. of Pittsburgh" on Justia Law

Defendants April Steele Benton and John Benton and State Farm Mutual Automobile Insurance Company ("State Farm"), petitioned for a writ of mandamus to direct the Bibb Circuit Court to vacate its July 18, 2016, order denying the Bentons' and State Farm's motion to transfer this action from the Bibb Circuit Court to the Shelby Circuit Court and to enter an order granting the motion. In 2014, April Steele Benton, a resident of Bibb County, and Amir Alan Ebrahimi, a resident of Shelby County, were involved in a two-vehicle collision in Shelby County. Following the collision, Ebrahimi was transported from the scene of the accident by Regional Paramedical Services to the University of Alabama at Birmingham Medical Center ("UAB"), where he received treatment for his injuries. Ebrahimi filed a complaint in the Bibb Circuit Court against April Steele Benton; John Benton, the owner of the car April was driving; and State Farm, Ebrahimi's underinsured-motorist carrier. The Bentons filed a motion to transfer the action to Shelby County based on the doctrine of forum non conveniens. The Bentons argued in their motion that Shelby County had a stronger connection to the case because: (1) the accident occurred in Shelby County; (2) the Pelham Police Department, located in Shelby County, investigated the accident; (3) Ebrahimi resided in Calera, located in Shelby County; (4) the first responders, employees of Regional Paramedical Services, were located in Shelby County; (5) Ebrahimi was treated at UAB, which was closer to Shelby County than to Bibb County; and (6) the only connection this action has with Bibb County was the fact that the Bentons, resided there. The Supreme Court found that the trial court should have granted the Bentons' motion for a change of venue, and accordingly, issued the writ of mandamus to direct the trial court to deny the motion and transfer the action to Shelby County. View "Ex parte Benton et al." on Justia Law