ILNews

Court to take landlord-tenant insurance query

Back to TopE-mailPrintBookmark and Share

The Indiana Supreme Court has accepted a certified question from a federal judge, and will now consider a state law issue that it hasn't before: whether a tenant is considered a co-insured under a landlord's fire insurance policy if there's no express agreement saying otherwise.

An order dated Monday was posted online today in Auto-Owners Insurance Company a/s/o David M. Brown v. Carolyn Young, d/b/a Peddlers Corner Cafe, No. 94S00-0909-CQ-417. The case comes from the Southern District of Indiana's New Albany division, where U.S. District Judge Sarah Evans Barker asked the state justices to weigh in on the issue according to Indiana Appellate Rule 64.

Filed in September 2008, the case involves an Orange County woman who leased property for a cafe from plaintiff David M. Brown, who was insured by the Michigan-based company Auto-Owners. The two are siblings and didn't have a formal written lease agreement, though they discussed generally the terms of the agreement. She said Brown told her he had building insurance and that she'd only need coverage for her personal property and assets, and that's what she obtained, according to the complaint.

A September 2006 fire damaged the property and Brown received nearly $84,000 from his insurance carrier, but just before the two-year-statute of limitations ran out Auto-Owners filed a complaint that alleged the fire and damage was a result of Young's negligence and that it should be able to recover the payments to Brown.

In a motion to dismiss, Young contended that Auto-Owners has no subrogation rights against her because her interests were insured under Brown's insurance policy. Judge Barker analyzed the issue and relied on Sutton v. Jondahl, 532 P. 2d 478 (C.App.Okla. 1975), which said that a tenant should be deemed a co-insured under a landlord's fire policy if there isn't a written agreement. But since that precedent isn't controlling here and this is an issue of first impression for Indiana law, Judge Barker asked the Indiana Supreme Court to consider the question.

With that, Young's federal motion to dismiss has been administratively closed pending a resolution by the Indiana Supreme Court. The state court wants simultaneous briefing in the case, and the main and response briefs are all due by Dec. 2. Any oral arguments will be scheduled at a later time, the court's order says.

ADVERTISEMENT

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. File under the Sociology of Hoosier Discipline ... “We will be answering the complaint in due course and defending against the commission’s allegations,” said Indianapolis attorney Don Lundberg, who’s representing Hudson in her disciplinary case. FOR THOSE WHO DO NOT KNOW ... Lundberg ran the statist attorney disciplinary machinery in Indy for decades, and is now the "go to guy" for those who can afford him .... the ultimate insider for the well-to-do and/or connected who find themselves in the crosshairs. It would appear that this former prosecutor knows how the game is played in Circle City ... and is sacrificing accordingly. See more on that here ... http://www.theindianalawyer.com/supreme-court-reprimands-attorney-for-falsifying-hours-worked/PARAMS/article/43757 Legal sociologists could have a field day here ... I wonder why such things are never studied? Is a sacrifice to the well connected former regulators a de facto bribe? Such questions, if probed, could bring about a more just world, a more equal playing field, less Stalinist governance. All of the things that our preambles tell us to value could be advanced if only sunshine reached into such dark worlds. As a great jurist once wrote: "Publicity is justly commended as a remedy for social and industrial diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient policeman." Other People's Money—and How Bankers Use It (1914). Ah, but I am certifiable, according to the Indiana authorities, according to the ISC it can be read, for believing such trite things and for advancing such unwanted thoughts. As a great albeit fictional and broken resistance leaders once wrote: "I am the dead." Winston Smith Let us all be dead to the idea of maintaining a patently unjust legal order.

  2. The Department of Education still has over $100 million of ITT Education Services money in the form of $100+ million Letters of Credit. That money was supposed to be used by The DOE to help students. The DOE did nothing to help students. The DOE essentially stole the money from ITT Tech and still has the money. The trustee should be going after the DOE to get the money back for people who are owed that money, including shareholders.

  3. Do you know who the sponsor of the last-minute amendment was?

  4. Law firms of over 50 don't deliver good value, thats what this survey really tells you. Anybody that has seen what they bill for compared to what they deliver knows that already, however.

  5. As one of the many consumers affected by this breach, I found my bank data had been lifted and used to buy over $200 of various merchandise in New York. I did a pretty good job of tracing the purchases to stores around a college campus just from the info on my bank statement. Hm. Mr. Hill, I would like my $200 back! It doesn't belong to the state, in my opinion. Give it back to the consumers affected. I had to freeze my credit and take out data protection, order a new debit card and wait until it arrived. I deserve something for my trouble!

ADVERTISEMENT