Justia Insurance Law Opinion Summaries

This dispute began in 2016 when Defendants sued a motorist in state court for damages stemming from an automobile accident. The motorist fled the scene of the accident, was criminally charged for failing to provide his name, address, and insurance information, and pleaded nolo contendere to a criminal misdemeanor. The motorist was insured by Allstate Fire & Casualty Insurance Company (“Allstate”). Allstate paid Defendants claims for property damages, but Defendants rejected Allstate’s offers to resolve their physical injury claims, demanding the policy limit of $50,000. The district court determined that it had subject matter jurisdiction over the lawsuit, denying Defendants’ motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(1). It subsequently granted summary judgment in favor of Allstate, finding that the motorist’s failure to cooperate in the underlying suit prejudiced Allstate and barred any legal obligation to pay Defendants the judgment amount of $163,822.   The Fifth Circuit affirmed the district court’s determination that it had subject matter jurisdiction. The court held that where the claim under the policy exceeds the value of the policy limit, courts considering declaratory judgments should ask whether there is a legal possibility that the insurer could be subject to liability in excess of the policy limit. The party seeking diversity jurisdiction should establish this possibility by a preponderance of the evidence. View "Allstate Fire and Casualty v. Allison Love" on Justia Law

The Supreme Court affirmed the judgment of the trial court dismissing a Monroe County action with prejudice and denying Appellant's motions to correct error and to amend her complaint, holding that a plaintiff seeking tort damages from both government and non-government defendants must sue all such tortfeasors in one lawsuit.Plaintiff sustained injuries while driving in an I-69 construction zone. Plaintiff obtained a judgment against a non-government defendant in Lake County to satisfy the requirements for obtaining insurance coverage. After Plaintiff and the insurer settled her insurance claims Plaintiff again sued for the same injuries, this time in the Monroe Circuit Court against six other defendants, both government and non-government. The trial court dismissed the action with prejudice, concluding that collateral estoppel and claim splitting barred Plaintiff's claims. The Supreme Court affirmed, holding (1) the trial court was correct in dismissing Plaintiff's action on issue preclusion grounds; and (2) Plaintiff was not entitled to relief on her remaining claims of error. View "Davidson v. State" on Justia Law

E.G. fell from a roof and became paralyzed from the waist down, never to walk again. Within months, his medical bills climbed past $400,000, and future costs projected into the millions. Three insurance companies potentially provided coverage for the man. This appeal is a battle between the two of them. The primary insurer for E.G.’s company was Southern-Owners Insurance Company. E.G. was performing subcontracting work for Beck Construction, which had a policy with American Builders Insurance Company and an excess policy with Evanston Insurance Company. Southern-Owners refused to pay any amount to settle the claim, and American Builders and Evanston ponied up a million dollars apiece instead. American Builders then sued Southern-Owners for common law bad faith under Florida’s doctrine of equitable subrogation. Southern-Owners moved for summary judgment, but the district court denied the motion. A federal trial jury heard the case and found in favor of American Builders.  Southern-Owners sought judgment as a matter of law or, in the alternative, a new trial. The district court denied those motions, too. On appeal, Southern-Owners challenges the denials of its summary judgment and post-trial motions.   The Eleventh Circuit affirmed. The court held that the evidence is not “so overwhelmingly in favor of [Southern-Owners] that a reasonable jury could not” have ruled for American Builders on bad faith and against Southern-Owners on breach of contract. Further, the court held that the jury’s verdict was not against the clear weight of the evidence, and the district court did not abuse its discretion in denying Southern-Owners’ Rule 59 motion. View "American Builders Insurance Company v. Southern-Owners Insurance Company" on Justia Law

The Supreme Court reversed the opinion of the court of appeals that because an insurance company's coverage under its policy had never been finally adjudicated, a third-party claimant's bad faith claim was premature, holding that the court of appeals erred.Relying on Pryor v. Colony Insurance Co., 414 S.W.3d 424 (Ky. App. 2013), the court of appeals held that the circuit court improperly allowed Plaintiffs to pursue their bad faith claims because coverage had not been established when they filed their third-party bad faith complaint. The Supreme Court reversed, holding (1) Pryor should not be construed as requiring a final judicial determination of coverage prior to filing a third-party tort claim against an insurer, and instead, this Court continues to apply the requirements of Wittmer v. Jones; and (2) the court of appeals erred concluding that the circuit court improperly permitted Plaintiffs to pursue their bad faith claims in violation of Pryor because coverage had not been established when they filed their third-party bad faith complaint. View "Estate of Bramble v. Greenwich Insurance Co." on Justia Law

The Supreme Court reversed the judgment of the court of appeals affirming the decision of the trial court to utilize Ky. R. Civ. P. 37.02(3) to assess attorney's fees against a non-party after the non-party failed to obey an order to comply with a subpoena duces tecum, holding that the plain language of CR 34.07(3) applies only to parties to an action.Plaintiffs brought two actions related to an automobile collision against their insurer, Allstate Property & Casualty Insurance Company, among others. Allstate disputed the charges assessed by Dr. David Megronigle for his chiropractic treatment to Plaintiffs, alleging that they were not properly compensable. Plaintiffs later filed a notice of voluntary dismissal as to Megronigle. Thereafter, Allstate filed a motion for attorney's fees under CR 37.02(3). The court granted the motion and ordered Megronigle to pay Allstate the amount of $816. The court of appeals affirmed. The Supreme Court reversed, holding (1) the plain language of CR 37.07(3) applies only to parties to an action; and (2) Megronigle was not a party to the underlying action because he was involved solely by virtue of the subpoenas served upon him by Allstate. View "Megronigle v. Allstate Property & Casualty Insurance Co." on Justia Law

The Supreme Court affirmed in part and reversed in part the judgment of the circuit court in favor of Secura Supreme Insurance Company as the underinsured motorists' (UIM) carrier for Viviane Renot, holding that the trial court erroneously permitted Dr. David Porta to testify about medical questions beyond his qualifications.Renot was allegedly injured in a vehicle collision and brought this action against Secura as her UIM carrier. During trial, Secura called Porta, a biomechanics expert, to testify regarding his biomechanics and anatomical opinions relative to the mechanism of injury in the collision. The jury returned a verdict in favor of Secura, finding that the collision had not been a substantial factor in Renot's injuries. The court of appeals affirmed. The Supreme Court reversed in part, holding that the trial court erroneously permitted Dr. Porta to invade the exclusive province of medical doctors in determining medical causation, and the error required a new trial. View "Renot v. Secura Supreme Insurance Co." on Justia Law

Dr. Robert P. Rothenberg (Rob) tragically suffered a fatal heart attack prior to paying the initial premium on his term life insurance policy issued by Principal National Life Insurance Company (Principal). Principal filed this action in the district court, seeking a declaratory judgment that Appellant— the policy’s intended beneficiary—was not owed death benefits in light of the nonpayment. Appellant filed a counterclaim, asserting claims against Principal for breach of contract, vexatious denial of proceeds, and negligence, as well as claims against Appellee, the couple’s insurance broker and financial planner, for negligence. After the parties filed cross-motions for summary judgment, the district court granted summary judgment in favor of Principal and Appellee, finding, in part, that the policy was not in effect at the time of Rob’s death. Appellant appealed, arguing that the district court erred in concluding (1) that the Policy was not in effect at the time of Rob’s death and (2) that, assuming the Policy was not in effect, neither Principal nor Appellee were negligent because neither owed a duty to Appellant.   The Eighth Circuit affirmed. The court explained that Appellant did not pay the initial premium until after Rob’s death, at which time he was not in a similar state of health as when he applied for the policy. Moreover, any “privileges and rights” Rob (or Appellant) had to retroactively effectuate the Policy were terminated at Rob’s death pursuant to the Policy’s termination provision. Second, Rob’s signature on the EFT Form alone did not render the Policy effective on April 26, 2019, or earlier. View "Principal National Life Insurance Company v. Donna Rothenberg" on Justia Law

The Supreme Court affirmed the rulings of the Workers' Compensation Court (WCC) determining that Johnny Lee Sheldon's claim was compensable, that Contessa Bryer, Sheldon's guardian and conservator, was entitled to her attorney fees, and that a statutory penalty should be imposed against Accident Fund General Insurance Company, holding that the WCC did not err.Sheldon was rendered incapacitated and mentally incompetent after a workplace accident. Because Accident Fund General Insurance Company refused to accept liability for Sheldon's workers' compensation claim Bryer, Sheldon's guardian and conservator, petitioned the WCC for a hearing. The WCC ruled that Accident Fund was liable for Sheldon's injuries and that Bryer was entitled to attorney fees and a statutory penalty. The Supreme Court affirmed, holding that the WCC did not err when it (1) ruled that the statute of limitations was tolled during the time that Sheldon had no appointed guardian; (2) found that substantial credible evidence supported the WCC's finding that Sheldon was working with argon when the pressure relief valve burst; and (3) awarded attorney fees under Mont. Code Ann. 39-71-611 and by imposing a penalty against Accident Fund under Mont. Code Ann. 39-71-2907. View "Bryer v. Accident Fund General Insurance Co." on Justia Law

Adora Wilmore-Moody, individually and as next friend of her minor son, brought an action against Mohammed Zakir and Everest National Insurance Company, alleging that Zakir had negligently rear-ended her vehicle, and sought personal protection insurance benefits from Everest for the injuries she and her son incurred as a result of the collision. Everest did not pay the benefits but instead rescinded plaintiff’s policy on the ground that plaintiff had failed to disclose that she had a teenaged granddaughter living with her when she applied for the insurance policy. Everest then brought a counterclaim seeking declaratory relief and moved for summary judgment of plaintiff’s claim against it under MCR 2.116(C)(10), arguing that it was entitled to rescind plaintiff’s policy because she had made a material misrepresentation in her insurance application. The trial court granted Everest’s motion. After this ruling, Zakir also moved for summary judgment, arguing that plaintiff was barred from recovering third-party noneconomic damages from him under the Michigan no-fault act because once Everett rescinded plaintiff’s insurance policy, she did not have the security required by statute at the time the injury occurred. The trial court granted Zakir summary judgment too. The Court of Appeals affirmed the grant of summary judgment to Everest, reversed as to Zakir, and remanded the case for further proceedings. Zakir appealed. The Michigan Supreme Court affirmed the appellate court: an insurer’s decision to rescind a policy post-accident does not trigger the exclusion in MCL 500.3135(2)(c). "Rescission is an equitable remedy in contract, exercised at the discretion of the insurer, and does not alter the reality that, at the time the injury occurred, the injured motorist held the required security. Rescission by the insurer post-accident is not a defense that can be used by a third-party tortfeasor to avoid liability for noneconomic damages." View "Wilmore-Moody v. Zakir" on Justia Law

Farm Family Casualty Insurance Company (“Farm Family”) appealed after the district court granted summary judgment to Nodak Insurance Company (“Nodak”) and denied, in part, summary judgment to Farm Family. This case arose from an April 6, 2019 motor vehicle accident. Samuel Hamilton was the son of Bruce and Diana Hamilton. At the time of the April 2019 accident at issue, Samuel was a resident of North Dakota, and his parents were residents of Montana. Before the accident, Farm Family issued an automobile insurance policy to Bruce and Diana with an effective policy period of October 19, 2018 to April 19, 2019. The policy insured a 2011 pickup truck. After moving to Montana, the Hamiltons obtained an insurance policy from Mountain West Farm Bureau Mutual Insurance Company (“Mountain West”) that also insured the 2011 pickup truck with a term running from December 2, 2018 to June 2, 2019. In April 2019, Samuel was driving the insured 2011 pickup truck in Williams County, North Dakota. Samuel reportedly ran a stop sign while intoxicated and struck another vehicle; H.W. was seriously injured and A.M. was killed. Nodak insured the vehicle H.W. and A M. occupied at the time of the accident. Nodak filed suit seeking a declaration Farm Family’s automobile policy was in effect at the time of the April 2019 accident, Farm Family’s policy could not be retroactively cancelled, and the vehicle driven by the insureds’ son was not an “underinsured motor vehicle” under North Dakota law. The North Dakota Supreme Court concluded the automobile policy Farm Family issued to its insureds had not “ceased” under the policy language and remained in effect at the time of the April 2019 motor vehicle accident. View "Nodak Ins. Co. v. Farm Family Casualty Ins. Co., et al." on Justia Law