Archive for the ‘Insurance’ Category

Off Target – Hunting Club Insurance Doesn’t Cover Member Involved in Accidental Shooting (VA)

August 6, 2015

Marks v. Scottsdale Co. (Virginia)

This case involves a creative attempt by a tortfeasor to find insurance coverage.  The plaintiff Ray Marks, Jr. (“Marks) was a nonmember the defendant hunting club.  He had been injured when he was accidentally shot by a hunting club member (plaintiff Timothy B. Johnson [“Johnson”]) as the Marks was driving by the club’s property.  Both Marks and Johnson sued the club’s general liability insurer after the insurer denied insurance coverage to Johnson for the incident.  The insurer filed a motion for summary judgment contending that the club’s policy did not cover club members for their personal recreational activities, and the trial court granted the motion.  Plaintiffs appealed. (more…)

Don’t Believe the Type – No Liability Coverage for Event Production Company Despite Contrary Insurance Certificate (LA)

August 4, 2015

Daniels v. SMG Crystal, LLC (Louisiana)

This case revolves around the 2005 Essence Festival held at the Louisiana Superdome in New Orleans. An attendee of the event slipped and fell on an unknown substance at the Superdome, suffering personal injury.  She filed a lawsuit against government entities, the Superdome manager, the festival organizer, and a production company hired by the organizer to produce the festival.  The government entities and the Superdome manager filed cross-complaints against the festival organizer and the production company seeking defense and indemnity protection.  The organizer filed a cross complaint against the production company and its commercial general liability (“CGL”) insurer.  The insurer eventually filed a motion for summary judgment on the grounds that it did not owe a duty to defend or indemnify any of the parties under the CGL policy.  The District Court initially denied the motion, but later granted the insurer’s motion for a new trial and for summary judgment.  Appeals followed.  On appeal, the Court of Appeal of Louisiana vacated the District Court decision and remanded the matter.  On remand, the District Court granted the insurer’s motion for summary judgment against the injured attendee and the production company on the issue of insurance coverage, and it dismissed all the claims against the insurer.  The production company appealed again. (more…)

Speed Trap

November 15, 2012

Hines v. Camper (Ohio)(Not Published)
(A passenger in a car participating in a street race was injured when the car crashed.  After the insurer of the driver’s car refused to afford coverage, the plaintiff brought an uninsured/underinsured action against it.  The trial court ruled that the policy exclusion relating to racing and speed contests precluded coverage.  The passenger appealed, arguing he was not a “participant,” but  the decision was affirmed on appeal.)

The plaintiff and several of his friends gathered to participate in an amateur street drag race one evening.  Plaintiff sat in the back seat of the car during the race since the front passenger seat did not have a seatbelt.  During the race, the driver of the car lost control and they crashed, with the plaintiff suffering numerous injuries.  Following the incident, the plaintiff sought recovery from the insurance company that insured the parents of the driver.  However, the claim was denied based upon the exclusion that provided that the insurer “will not pay any damages an insured person or an additional insured person is legally entitled to recover because of bodily injury . . . arising out of the participation in a pre-arranged, organized, or spontaneous . . . racing contest . . . speed contest . . .or use of an auto at a track or course designed or used for racing or high performance driving . . . .”

At the trial court level, the defendant insurer’s motion for summary judgment was granted based on both the aforementioned policy exclusion and the plaintiff’s assumption of the risk of injury associated with him entering the vehicle involved in the street race.  The plaintiff appealed, arguing (1) he was not a “participant” in the street race because he was not driving and (2) there was a triable issue of material fact pertaining to his assumption of the risk.

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Deflated

October 1, 2012

Interstate Fire & Casualty v. Abernathy (Florida)
(A minor festival attendee was injured while using an inflatable bungee run; the mother of the minor sued the club that was hosting the event; after settling with the club for millions of dollars and obtaining a judgment, the mother then filed an action against the club’s insurer for failing to provide coverage and for engaging in bad faith; the court ruled that the coverage did not extend back four days to liability for the prior known injury.)

Interstate Fire & Casualty appealed a final judgment against it awarding the injured minor more than six million dollars.  The trial court had determined that a certificate of insurance that was issued by a broker on April 18, 2007 conferred coverage on a purported additional insured (the club hosting the festival) for liability for the minor’s injury that occurred four days earlier on April 14, 2007.

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