ILNews

Court rules against Bobby Knight's appeal

Jennifer Nelson
January 1, 2007
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
The Court of Appeals ruled today in favor of the insurance company in a case involving former Indiana University men's basketball head coach Bobby Knight in Robert M. Knight v. Indiana Insurance Company and Indiana University http://www.in.gov/judiciary/opinions/pdf/08080701lmb.pdf. The trial court granted summary judgment in favor of Indiana Insurance Co. on Knight's breach of contract, bad faith, negligence, and punitive damage claims. Knight appealed, arguing the court erred in granting summary judgment on Knight's claims the company wrongfully denied his homeowners policy coverage and breached its duty to investigate and defend a lawsuit that arose in Knight's workplace.

In December 1999, while Knight was employed at Indiana University, he overheard assistant basketball coach Ronald Felling on the phone criticizing Knight's coaching abilities and referring to Knight in a derogatory manner. Knight advised Felling to find another job and later verbally confronted Felling in an office at Assembly Hall at IU with other assistant coaches present. Knight made physical contact with Felling as he tried to leave, contact Knight and his assistant coach and son Pat Knight described as a "bump." As a result of the contact, Felling was pushed backwards into a television set and later filed a lawsuit in the U.S. District Court for the Southern District of Indiana in April 2001. The lawsuit presented a wrongful termination claim against IU and alleged Knight's physical conduct against Felling violated 42 U.S.C. 1983.

In October 2001, Knight informed his insurer, Indiana Insurance Co. - with which he had a homeowner's policy - about the Felling lawsuit. In late October, the insurance company issued a reservation of rights letter to Knight that outlined liability coverages and exclusions.

In July 2002, the insurer took a recorded statement from Knight during which he said he "bumped into Felling," they "collided as (Knight) jumped up," and "(Felling) couldn't have been hurt." In August of that year, the insurance company sent a letter to Knight denying his coverage for the Felling lawsuit citing the "business exclusion" in his policy. On Aug. 30, 2002, Knight settled the lawsuit by paying $25,000 to Felling and admitting he shoved Felling in anger.

In 2004, Knight filed a complaint seeking indemnification from the insurer and IU. The insurer moved for summary judgment and Knight filed a cross-motion for summary judgment on the insurer's duty to defend. The trial court granted summary judgment for the insurance company.

Knight appealed, claiming the summary judgment was improper because Felling had no bodily injury and the trial court erroneously applied an insurance coverage exclusion involving bodily injury; that there is a genuine issue of material fact whether Knight acted with the intent to cause injury; and that the trial court erroneously concluded as a matter of law the insurance company had not breached its duty to defend.

The Court of Appeals ruled Felling did not sustain bodily harm, sickness, or diseases as a result of the event, which is how bodily injury is defined in Knight's policy. Because there was no bodily injury, there was no event to warrant coverage under the policy.

Also, the incident occurred at Knight's profession or place of business. His homeowner's policy excludes injury or damage "arising out of or in connection with a business engaged in by an insured."

Knight also claimed Indiana Insurance Co. breached its duty to reasonably investigate and defend the lawsuit and is entitled to reimbursement for his costs of legal representation. The Court of Appeals ruled it was a workplace incident that resulted in no bodily injury and a reasonable claims manager would be able to "discern the lack of contractual obligation at that juncture."
ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

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