ILNews

Insurer failed to prove driver violated policy clause

Back to TopCommentsE-mailPrintBookmark and Share

Because a drug test failed to show conclusively when a driver last used marijuana before a fatal crash, an insurer cannot deny payment based on an exclusionary clause in the policy, the Court of Appeals determined.

In Shawn A. Keckler, Kari Felda, Special Admin. to the Estate of Ryan S. Holloway, Janice Norman, Dewayne Scott, Timothy J. Boganwright, et al. v. Meridian Security Insurance Company, No. 43A03-1112-PL-551, a grant of summary judgment in favor of Meridian Security Insurance Company on its declaratory judgment action was appealed.

In 2008, Nathan Creighton was driving, with passengers Shawn Keckler, Bryant Scott and Ryan Holloway as passengers. Creighton attempted to pass a car that stopped in his lane and crashed head-on into a truck driven by Timothy Boganwright. Scott and Holloway were pronounced dead at the scene; Creighton and Keckler sustained brain injuries and have no memory of the crash. Boganwright also was injured.

Police investigating the crash scene discovered that Holloway was in possession of several bags of marijuana and that Creighton was in possession of one bag of marijuana. Police also stated in a crash report that Creighton “also had glassy eyes and appeared very disorderly,” although Creighton was unconscious when police arrived on the scene.

At the time, Creighton’s primary insurer, through his father, was Progressive, with a global policy limit of $500,000. Creighton also was insured under his father’s umbrella policy with Meridian, with a coverage limit of $1 million.

Keckler filed a motion for summary judgment against Meridian, and the other plaintiffs joined in. But Meridian claimed that the crash was not covered, due to an exclusionary clause in the policy that precludes payments for injuries that arise out of the use, sale, manufacture, delivery, transfer or possession of drugs. In support of that claim, Meridian submitted testimony from a toxicologist, but the toxicologist could not determine from a post-crash blood draw when Creighton might have last used marijuana before the crash.

The Court of Appeals concluded that Meridian did not meet its burden on summary judgment of establishing that the exclusionary clause for injuries arising out of the use of marijuana applied in this case. It held that denying insurance coverage would have drastic consequences not only for Creighton, but also for injured parties seeking recompense for the injuries he caused. The COA reversed summary judgment in favor of Meridian and remanded for further proceedings.


 

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. I gave tempparry guardship to a friend of my granddaughter in 2012. I went to prison. I had custody. My daughter went to prison to. We are out. My daughter gave me custody but can get her back. She was not order to give me custody . but now we want granddaughter back from friend. She's 14 now. What rights do we have

  2. This sure is not what most who value good governance consider the Rule of Law to entail: "In a letter dated March 2, which Brizzi forwarded to IBJ, the commission dismissed the grievance “on grounds that there is not reasonable cause to believe that you are guilty of misconduct.”" Yet two month later reasonable cause does exist? (Or is the commission forging ahead, the need for reasonable belief be damned? -- A seeming violation of the Rules of Profession Ethics on the part of the commission) Could the rule of law theory cause one to believe that an explanation is in order? Could it be that Hoosier attorneys live under Imperial Law (which is also a t-word that rhymes with infamy) in which the Platonic guardians can do no wrong and never owe the plebeian class any explanation for their powerful actions. (Might makes it right?) Could this be a case of politics directing the commission, as celebrated IU Mauer Professor (the late) Patrick Baude warned was happening 20 years ago in his controversial (whisteblowing) ethics lecture on a quite similar topic: http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1498&context=ilj

  3. I have a case presently pending cert review before the SCOTUS that reveals just how Indiana regulates the bar. I have been denied licensure for life for holding the wrong views and questioning the grand inquisitors as to their duties as to state and federal constitutional due process. True story: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS Shorter, Amici brief serving to frame issue as misuse of govt licensure: https://www.scribd.com/doc/312841269/Thomas-More-Society-Amicus-Brown-v-Ind-Bd-of-Law-Examiners

  4. Here's an idea...how about we MORE heavily regulate the law schools to reduce the surplus of graduates, driving starting salaries up for those new grads, so that we can all pay our insane amount of student loans off in a reasonable amount of time and then be able to afford to do pro bono & low-fee work? I've got friends in other industries, radiology for example, and their schools accept a very limited number of students so there will never be a glut of new grads and everyone's pay stays high. For example, my radiologist friend's school accepted just six new students per year.

  5. I totally agree with John Smith.

ADVERTISEMENT