ILNews

High court addresses provision for 1st time

Back to TopCommentsE-mailPrintBookmark and Share


The Indiana Supreme Court affirmed the denial of summary judgment for an insurance company, finding the exclusion in the policy for injuries covered by workers’ compensation doesn’t apply.

The high court was asked for the first time to review a provision of the Worker’s Compensation Act. The provision states that anyone contracting for more than $1,000 of work may be liable to the same extent as the contractor for injuries under the Worker’s Compensation Act if the person hiring the contractor doesn’t verify that the contractor has workers’ compensation insurance liability.

Farmers Rick and Katrina Taylor hired Sherlock Contract Painting. One of Sherlock’s employees, Christopher Collis, was injured on the job. He discovered Sherlock didn’t have workers’ compensation benefits, which the Taylors didn’t verify before hiring Sherlock. Collis then sued the Taylors for benefits under Indiana Code Section 22-3-2-14(b).

The Taylors were insured with Everett Cash Mutual Insurance Co. and had a farm personal liability policy for “all risk” coverage. Everett Cash denied coverage for Collis’ accident. The Taylors then sued for breach of contract. The trial judge denied summary judgment for Everett Cash; a split Indiana Court of Appeals reversed.

The Taylors argued Collis’ claim is a premises liability claim, so their policy should cover it. Everett Cash argued Collis’ claim is for workers’ compensation benefits, which are excluded under the policy. It claimed the occurrence under the policy must be an accident, and that the claim arose because of the Taylors’ failure to verify workers’ compensation benefits.

In Everett Cash Mutual Insurance Co. v. Rick and Katrina Taylor, No. 02S03-0909-CV-395, the Supreme Court ruled the claim was a result of an accident, so it was an occurrence as defined by the policy. The justices also found the language in the policy that Everett Cash claims to exclude this coverage to be ambiguous. It’s possible to read the language to mean that if not for I.C. Section 22-3-2-14(b), Collis wouldn’t have asserted the Taylors were responsible for his injuries and so Everett Cash wouldn’t have to pay, wrote Justice Frank Sullivan.

It’s also possible to interpret the exclusion language as to apply to employers who are directly within the application of the Worker’s Compensation Act. Farm or agricultural employees are excluded under the act and the Taylors aren’t required to have workers’ compensation benefits because they own and work a farm.

One could conclude that the exemption only clarifies that the policy provides no coverage in the conventional worker’s compensation context when an employee seeks the benefits payable by an insured under the law.

“It would be beyond the ordinary understanding of the worker’s compensation system to extend the exclusion to the matter-of-first-impression scenario here – where a claim is filed against an insured by an injured worker in the employ of a third party who did not comply with its obligations under the Act,” wrote the justice. “Given that the Taylors could not have even purchased worker’s compensation insurance to protect themselves from claims by Sherlock’s employees, it is hard to imagine them thinking that an exclusion regarding worker’s compensation could preclude them from having protection from a lawsuit by someone injured in an accident on their property.”

The justices held for an insurance policy to exclude such a claim as the one in the instant case, the exclusion must be more explicit than the language used in the Everett Cash policy.
 

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. Good luck, but as I have documented in three Hail Mary's to the SCOTUS, two applications (2007 & 2013),a civil rights suit and my own kicked-to-the-curb prayer for mandamus. all supported in detailed affidavits with full legal briefing (never considered), the ISC knows that the BLE operates "above the law" (i.e. unconstitutionally) and does not give a damn. In fact, that is how it was designed to control the lawyers. IU Law Prof. Patrick Baude blew the whistle while he was Ind Bar Examiner President back in 1993, even he was shut down. It is a masonic system that blackballs those whom the elite disdain. Here is the basic thrust:https://en.wikipedia.org/wiki/Blackballing When I asked why I was initially denied, the court's foremost jester wrote back that the ten examiners all voted, and I did not gain the needed votes for approval (whatever that is, probably ten) and thus I was not in .. nothing written, no explanation, just go away or appeal ... and if you appeal and disagree with their system .. proof positive you lack character and fitness. It is both arbitrary and capricious by its very design. The Hoosier legal elites are monarchical minded, and rejected me for life for ostensibly failing to sufficiently respect man's law (due to my stated regard for God's law -- which they questioned me on, after remanding me for a psych eval for holding such Higher Law beliefs) while breaking their own rules, breaking federal statutory law, and violating federal and state constitutions and ancient due process standards .. all well documented as they "processed me" over many years.... yes years ... they have few standards that they will not bulldoze to get to the end desired. And the ISC knows this, and they keep it in play. So sad, And the fed courts refuse to do anything, and so the blackballing show goes on ... it is the Indy way. My final experience here: https://www.scribd.com/document/299040062/Brown-ind-Bar-memo-Pet-cert I will open my files to anyone interested in seeing justice dawn over Indy. My cases are an open book, just ask.

  2. Looks like 2017 will be another notable year for these cases. I have a Grandson involved in a CHINS case that should never have been. He and the whole family are being held hostage by CPS and the 'current mood' of the CPS caseworker. If the parents disagree with a decision, they are penalized. I, along with other were posting on Jasper County Online News, but all were quickly warned to remove posts. I totally understand that some children need these services, but in this case, it was mistakes, covered by coorcement of father to sign papers, lies and cover-ups. The most astonishing thing was within 2 weeks of this child being placed with CPS, a private adoption agency was asking questions regarding child's family in the area. I believe a photo that was taken by CPS manager at the very onset during the CHINS co-ocerment and the intent was to make money. I have even been warned not to post or speak to anyone regarding this case. Parents have completed all requirements, met foster parents, get visitation 2 days a week, and still the next court date is all the way out till May 1, which gives them(CPS) plenty of to time make further demands (which I expect) No trust of these 'seasoned' case managers, as I have already learned too much about their dirty little tricks. If they discover that I have posted here, I expect they will not be happy and penalized parents again. Still a Hostage.

  3. They say it was a court error, however they fail to mention A.R. was on the run from the law and was hiding. Thus why she didn't receive anything from her public defender. Step mom is filing again for adoption of the two boys she has raised. A.R. is a criminal with a serious heroin addiction. She filed this appeal MORE than 30 days after the final decision was made from prison. Report all the facts not just some.

  4. Hysteria? Really Ben? Tell the young lady reported on in the link below that worrying about the sexualizing of our children is mere hysteria. Such thinking is common in the Royal Order of Jesters and other running sex vacays in Thailand or Brazil ... like Indy's Jared Fogle. Those tempted to call such concerns mere histronics need to think on this: http://www.msn.com/en-us/news/us/a-12-year-old-girl-live-streamed-her-suicide-it-took-two-weeks-for-facebook-to-take-the-video-down/ar-AAlT8ka?li=AA4ZnC&ocid=spartanntp

  5. This is happening so much. Even in 2016.2017. I hope the father sue for civil rights violation. I hope he sue as more are doing and even without a lawyer as pro-se, he got a good one here. God bless him.

ADVERTISEMENT