Justia Insurance Law Opinion Summaries

Appellants filed a products liability action against Daimler-Chrysler Corporation after they were involved in a rollover collision while driving their Chrysler PT Cruiser. Appellants later filed a complaint for declaratory relief against Allianz Versicherungs-Aktiengesellschaft (“Allianz”), an international insurance company that provided insurance to Chrysler, alleging that Allianz had a duty to defend Chrysler in the underlying action. The district court granted summary judgment for Allianz and dismissed the complaint. Twenty months later, Appellants filed a complaint to vacate the summary judgment. The district court sustained Allianz’s motion to dismiss the complaint. The Supreme Court affirmed, holding (1) the time for exercise of the district court’s inherent power to vacate its judgment had expired; (2) the district court lacked jurisdiction to vacate its judgment because Appellants did not properly serve Allianz; and (3) the district court did not err in invoking its equity jurisdiction to vacate where Appellants had an adequate remedy at law. View "Carlson v. Allianz Versicherungs-Aktiengesellschaft" on Justia Law

George Dukes and Joe Jordan sued Union Insurance Company Inc. as surety on the public official bond of Newton County Circuit Clerk Rodney Bounds. Union filed a crossclaim against Bounds for indemnity. The Circuit Court dismissed the case against Bounds, but found Union liable to Dukes and Jordan. However, it also found Bounds liable to Union for indemnity. Union appealed, and the Court of Appeals reversed, finding that Union was not liable to Dukes and Jordan, and that Bounds was not liable to Union for indemnity. The Supreme Court granted Union’s petition for certiorari. Union argued the Court of Appeals erred by finding that Bounds was not liable to Union for indemnity for its attorneys fees and costs incurred in defending the lawsuits filed on Bounds’s public official bond. The Supreme Court affirmed in part, and reversed in part. The Court of Appeals erred to the extent it found that Bounds was not obligated to indemnify Union for reasonable attorneys’ fees and costs. View "Newton County v. Mississippi" on Justia Law

Plaintiff filed suit against State Farm in Missouri state court, seeking to recover underinsured motorist (UIM) benefits under plaintiff's policy with State Farm (the Pontiac policy). State Farm removed to district court based on diversity of citizenship and then the district court granted summary judgment in favor of State Farm. The court affirmed the district court's conclusion that the State Farm policy unambiguously prohibited stacking UIM coverage limits. Plaintiff's argument was foreclosed in Daughhetee v. State Farm Mut. Auto. Ins. Co. where the court affirmed the lower court's determination that the language in an identical State Farm automobile policy unambiguously precluded policy stacking of UIM coverage limits under Missouri law. View "Crain v. State Farm Mut. Auto. Ins. Co." on Justia Law

Ember Buckley was a passenger in a motor vehicle driven by Harvey Betts when the vehicle was involved in an accident. Buckley, who sustained injuries in the accident, settled with GEICO, Betts’ insurer, for the full policy limits and signed a full release of all claims against Betts and a hold harmless agreement in favor of GEICO. Buckley then attempted to recover for the remainder of her outstanding medical bills under her uninsured/underinsured motorist (“UM”) policy with The Brethren Mutual Insurance Company (“Brethren”), which denied coverage. Buckley filed suit, alleging breach of contract and seeking the policy limit in compensatory damages. The circuit court entered summary judgment for Brethren, concluding that the release was a general release, and thus released all entities from future claims, regardless of whether they were a party to the release. The court of special appeals reversed, holding that the general release did not prejudice Buckley’s claim against Brethren. The Court of Appeals affirmed, holding (1) the broad, all-inclusive language of the release must be read with an eye toward the parties’ overall intent; and (2) that the court of special appeals correctly held that the release did not waive Buckley’s UM claim against Brethren. View "Brethren Mut. Ins. Co. v. Buckley" on Justia Law

When Michael Lewis was sixteen years old, he was involved in a fatal car accident. At the time, Michael was driving a Ford pickup truck he had allegedly purchased from William Dodge. The other driver’s insurer paid Michael’s estate (Estate) its policy limit for liability. Michael’s mother, Angela, was insured by Concord General Mutual Insurance Company (Concord) at the time of the accident, and Michael’s father, David, was insured by Allstate Fire and Casualty Insurance Company (Allstate). The Concord and Allstate policies provided uninsured motorist (UM) benefits, as did Dodge’s policy with Property and Casualty Insurance Company of Hartford (Hartford). The Estate sought UM benefits from all three insurance companies. Each denied coverage, and the Estate filed suit against each company. The Superior court entered summary judgment in favor of Defendants. The Supreme Court vacated the judgment, holding that a genuine issue of material fact existed as to whether, pursuant to the agreement between Michael and Dodge, a final sale on the truck had been completed by the time of the accident. Remanded. View "Estate of Lewis v. Concord Gen. Mut. Ins. Co." on Justia Law

State Farm Mutual Automobile Insurance Company petitioned the Supreme Court for a writ of mandamus to direct the Clarke Circuit Court to vacate its order denying State Farm's motion to transfer this case to the Mobile Circuit Court and to enter an order granting the motion. The underlying action arose from an automobile accident that occurred in Mobile County in 2010. Sandra Banks, a resident of both Clarke and Mobile Counties, sued Robert Spray, a resident of Baldwin County, and State Farm. Banks alleged that she suffered injuries as a result of the wrongful, negligent, and/or wanton conduct of Spray when the vehicle he was driving and owned struck her vehicle. Additionally, Banks alleged that at the time of the accident she had a policy of insurance with State Farm, which included uninsured-/underinsured-motorist coverage, and that she was due proceeds under her coverage. Because both the "convenience of parties and witnesses" and the "interest of justice" prongs of the doctrine of forum non conveniens compelled the transfer of this case from Clarke County to Mobile County, the Supreme Court concluded the trial court abused its discretion in refusing to transfer the action. Therefore, the Court granted State Farm's petition and issued a writ directing the Clarke Circuit Court to vacate its order and to enter an order granting the motion. View "Banks v. Spray" on Justia Law

Plaintiff Nicholas Bonnano appealed the superior court’s grant of summary judgment against him and in favor of his employer, Verizon, and Verizon’s third-party claims administrator, Sedgwick Claims Management. Plaintiff’s claims stemmed from an alleged breach of a settlement agreement with employer regarding his workers’ compensation claim. On appeal, plaintiff argued that the trial court erred because there was a dispute of material fact as to the voluntariness of employer’s temporary total disability (TTD) payments made to plaintiff after the TTD termination date indicated in the settlement. Finding no reversible error, the Supreme Court affirmed the superior court in all respects. View "Bonanno v. Verizon Business Network Systems" on Justia Law

Plaintiff, a student cheerleader paralyzed while practicing a tumbling maneuver in gymnastics class, sought coverage under the insurance policy that Mutual issued to Prairie View as a member of the NCAA. Mutual argued that the policy covered student cheerleaders who were injured during cheerleading practice sessions. The court concluded that the gymnastics class could be considered a "practice session" under the policy; the coach authorized, supervised, and organized the cheerleading activities during the gymnastics class; the activities performed during the class were performed in preparation for a Qualifying Intercollegiate Sport team competition where plaintiff's primary purpose in taking the class was to improve his skills as a cheerleader; and the activities during the class were directly associated with the activities of a Qualifying Intercollegiate Sport team. Accordingly, the court affirmed the district court's grant of summary judgment in favor of plaintiff. View "Patterson v. Mutual of Omaha Ins. Co." on Justia Law

Amzak appealed the district court's summary judgment on its loan loss claims against its title insurance policy provider and related entities. The court concluded that Amzak failed to show that it suffered actual loss because of a failure of title and STL could not be held responsible for any harm suffered by Amzak. The court formalized the holding in First State Bank v. American Title and likewise rejected the guarantee rationale of Citicorp Savings of Illinois v. Stewart Title Guaranty Co., and agreed with the district court's rejection of Amzak's argument that STL breached the title policy at the time of the loan because its mortgage was voidable at that time. The court also disposed of Amzak's negligence claim where STL's delay in making a complete filing of Amzak's mortgage was not a legal cause of Amzak's loss. Accordingly, the court affirmed the judgment of the district court. View "Amzak Capital Mgmt. v. Stewart Title" on Justia Law

Appellant appealed the Bankruptcy Appellate Panel's (BAP) judgment holding that the bankruptcy estate of her former employer, Racing Services, was entitled to the liquidation proceeds of a cash-value life insurance policy the employer purchased for her. Because the trustee had presented no evidence demonstrating that appellant could have demonstrated insurability, the court rejected the argument that the purported "equities" of this case required that the court deem appellant's failure to reinstate the policy as an act of surrender. The terms of the agreement between appellant and Racing Services granted Racing Services only the limited right to receive a repayment of policy premiums from the cash value upon surrender of the policy. Accordingly, the court reversed where appellant at no time surrendered the policy and the estate did not possess a right to control the policy or receive its liquidation proceeds. View "Kaler v. Bala" on Justia Law