Justia Insurance Law Opinion Summaries

Plaintiff, an Indiana resident, was driving a semi-tractor trailer on behalf of Werner Transportation, a Georgia company, when he was injured in West Virginia after another truck hit his rig. Werner insured the truck under a policy from Empire Fire and Marine Insurance Co., which provided $5 million liability coverage. Empire, however, claimed that the policy included only $75,000 in underinsured motorist coverage. Applying Georgia law, the trial court granted summary judgment in favor of Empire, finding there was sufficient evidence that Werner made the affirmative choice to purchase underinsured motorist coverage in a lower amount than the liability policy limit. The court of appeals determined that Indiana law applied but nonetheless affirmed the trial court, concluding the evidence was sufficient under Indiana law to establish that Werner had explicitly rejected the default $5 million coverage limit and instead purchased coverage only in the amount of $75,000. The Supreme Court reversed, holding that the issue of whether Werner waived the higher liability limit for underinsured motorist insurance was “unsuitable for summary judgment and best left to the fact-finder.”View "Asklar v. Gilb" on Justia Law

In 2011, defendant S.G.'s vehicle collided with a motorcycle driven by John Allmer. S.G. was fifteen years old at the time. The parties stipulated Allmer suffered significant injuries, had medical expenses in excess of $1 million and continued to incur medical expenses for his care and treatment. Defendant Sandy Goetz and S.G.'s father were divorced, and S.G.'s father owned and insured the vehicle S.G. was driving. S.G. had exclusive possession of the car for six months prior to the accident. Her father's policy had an underlying liability limit of $250,000 and an umbrella policy of $1 million, which her father's insurance company offered in settlement of the claims against him. Goetz had an insurance policy with State Farm that listed Goetz and her vehicle as covered under the policy. Goetz signed S.G.'s driver's license application sponsorship form for drivers under the age of eighteen, assuming financial liability for S.G.'s negligent acts arising from operation of a motor vehicle under sections 39-06-08 (2011) and 39-06-09 (2011), N.D.C.C. State Farm filed a motion for summary judgment, arguing no dispute existed that S.G.'s vehicle was not covered under Goetz's policy. Goetz and S.G. filed a motion for summary judgment and Allmer filed a motion for summary judgment, arguing the language in Goetz's State Farm's insurance policy should be construed to provide coverage for the accident. State Farm did not dispute Goetz was liable for S.G.'s negligent acts; therefore, the district court addressed only whether State Farm's policy provided coverage for the claim. The district court found for the purposes of Goetz's policy that S.G. was considered a "resident relative" and S.G.'s Oldsmobile was a "non-owned" vehicle. The district court also determined State Farm was not required to cover S.G.'s vehicle because the vehicle was not designated on the policy. The district court granted State Farm's motion for summary judgment, and denied Goetz and S.G.'s motion for summary judgment and Allmer's motion for summary judgment. Allmer appealed, arguing that Goetz's signature on S.G.'s sponsorship form for her driver's license application imputed S.G.'s negligence to Goetz and created coverage for S.G.'s accident under Goetz's insurance policy. Finding no reversible error, the Supreme Court affirmed. View "State Farm Mutual Automobile Insurance Co. v. Gruebele" on Justia Law

The issue this case presented to the Delaware Supreme Court centered on whether coverage existed under certain management liability insurance policies. A bankruptcy trust sought a determination that those insurance policies covered potential future expenses and liabilities that might have arisen out of pre-bankruptcy wrongful acts allegedly committed by the insured debtor company’s directors and officers. XL Specialty Insurance Company and certain excess insurance carriers, appealed a Superior Court order denying their motion to dismiss the action. They claimed that the plaintiff-appellee, WMI Liquidating Trust lacked standing to prosecute its coverage claims, and, that the dispute did not present a ripe "actual controversy" susceptible of adjudication. Because the Supreme Court held that the Trust’s complaint must be dismissed on ripeness grounds, it did not reach the issue of standing. The parties’ dispute was not ripe because it has not yet assumed a concrete or final form. View "XL Specialty Insurance Co., et al. v. WMI Liquidating Trust" on Justia Law

Franklin Quick Cash, LLC, a payday and title lending company, was sued for wrongfully repossessing a vehicle. Franklin had a commercial general liability insurance policy with Continental Western Insurance Co. that covered liability for accidents but precluded coverage of liability for property damage “expected or intended” by the insured. Continental Western refused to provide a defense on the grounds that Franklin’s actions leading to the suit were intentional. Franklin sued Continental Western for wrongful refusal to defend. The circuit court granted summary judgment for Franklin. The Supreme Court reversed, holding that Continental Western did not have a duty to defend because Franklin intended to repossess the vehicle, and therefore, there was no potential for coverage at the outset of the underlying lawsuit.View "Allen vs. Continental W. Ins. Co." on Justia Law

Bridgeview Health Care Center filed a class action complaint against Clark, an Illinois resident who operates Affordable Digital Hearing, a sole proprietorship out of Terre Haute, Indiana. Bridgeview alleged that Clark sent Bridgeview and others unsolicited faxes and claimed violation of the Telephone Consumer Protection Act of 1991, 47 U.S.C. 227; common law conversion of its fax paper and toner; and violation of the Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/2. Clark had a comprehensive general liability policy issued by State Farm, an Illinois corporation. The policy was purchased through an Indiana agent and issued to Clark’s Indiana business address. State Farm sought declaratory judgment that it had no duty to defend in Indiana state court. The action was dismissed for lack of personal jurisdiction over Bridgeview. Bridgeview sought a declaration, in Illinois state court that State Farm had a duty to defend and indemnify Clark under the advertising injury and property damage provisions of the policy. State Farm argued that Illinois law conflicts with Indiana law on coverage issues and that Indiana law should apply. The circuit court found that there was no conflict and no need to conduct a choice-of-law analysis. The appellate court reversed, finding that decisions cited by State Farm were sufficient to raise the possibility of a conflict, requiring a choice-of-law analysis The Illinois Supreme Court reversed, finding that State Farm failed to meet its burden of demonstrating that an actual conflict exists between Illinois and Indiana law.View "Bridgeview Health Care Ctr., Ltd. v. State Farm Fire & Cas. Co." on Justia Law

After two boys drowned at a pool party sponsored by the FCA, the boys' survivors filed suit against the FCA in state court, alleging negligence and loss of consortium. The FCA then filed this declaratory judgment and breach of contract action against its insurers in federal district court seeking a "judicial determination as to whether Iowa Claims constitute one or two occurrences" under its commercial general liability insurance policy. The court affirmed the district court's grant of summary judgment in favor of the primary insurer, holding that there existed only one occurrence. View "Fellowship of Christian Athletes v. Ironshore Specialty Ins." on Justia Law

Plaintiff sought coverage from Farm Bureau for flood damage to her home but failed to submit the one-page proof of loss form required by the federal standard flood insurance policy. The court concluded that plaintiff's failure to complete and submit the form precluded coverage as a matter of federal statutory, regulatory, and common law. Accordingly, the court reversed and remanded for entry of judgment in favor of Farm Bureau. The court declined to tax Farm Bureau's costs against plaintiff. View "Stoner v. Southern Farm Bureau Casualty Ins." on Justia Law

After the denial of his flood insurance claim, plaintiff filed suit against Farm Bureau alleging a state bad faith claim and federal breach of contract. The court held that the district court committed reversible legal error by excusing plaintiff from complying with the standard flood insurance policy's (SFIP) proof of loss requirement. Even if Farm Bureau wished to waive the proof of loss, FEMA has not authorized waiver in this case. Accordingly, the court reversed and remanded for entry of judgment in favor of Farm Bureau. View "McCarty v. Southern Farm Bureau Casualty Ins. Co." on Justia Law

United Fire sought a declaratory judgment that an insurance policy it issued to Rose did not provide coverage to Wayne Rockett, a supervisory level employee of Rose. The court affirmed the district court's grant of summary judgment to United Fire, concluding that the term "directors" in the insurance policy unambiguously provided coverage only to Rose's actual board of directors and not to employees such as Rockett. View "United Fire & Casualty Ins. Co. v. Thompson" on Justia Law

The district court entered summary judgment relieving Kentucky Farm Bureau Mutual Insurance of its duty to defend Elk Glenn against certain breach of contract and related claims arising from the sale of a residential lot. The Sixth Circuit dismissed an appeal. A certification to appeal under Rule 54(b) requires the district court to determine that there is no just reason for delay, which requires the district court to balance the needs of the parties against the interests of efficient case management. The district court’s only reason supporting immediate appeal was the “real prejudice” Kentucky Farm Bureau would suffer. That reference, without further explication, does not provide reasoning supporting the necessity of immediate review. Without proper certification for an interlocutory appeal under Rule 54(b), an order disposing of fewer than all claims in a civil action is not immediately appealable. The Sixth Circuit declined to order the district court to make the necessary findings supporting jurisdiction. View "Adler v. Elk Glenn, LLC" on Justia Law