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Court clarifies ‘known claim’ exclusion applies in insurance coverage dispute

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The Indiana Court of Appeals granted rehearing to a case involving a dispute over coverage for environmental contamination and found that the “known claim” exclusion applies, not the known loss doctrine.

Patricia Kopetsky and Indiana Insurance Co. sought clarification from the appeals court regarding the possible finding that George Kopetsky knew of contamination in a housing development prior to obtaining CGL coverage from Indiana Insurance.

In June, the judges ordered a trial on the issue of whether the known loss doctrine would bar coverage by Indiana Insurance. George Kopetsky sold land to KB Home Indiana for a housing development. It’s alleged that he knew as early as May 2002 that some of the lots were contaminated. He obtained coverage from Indiana Insurance in April 2002 that was in effect for a four-year period.

The judges addressed the legal effect of Indiana Insurance’s knowledge of the contamination. Patricia Kopetsky argued that under the common law known loss doctrine, even if a jury found George Kopetsky knew of the contamination before taking out the policy, coverage would only be barred during the first of the four coverage years. The insurer, citing the known claim exclusionary language from the policies, argued that there is no coverage for the final three years, regardless of what the jury finds regarding George Kopetsky’s knowledge. It also argued that a finding he knew of the loss before obtaining coverage would bar coverage in the first year as well.

“We agree with Indiana Insurance because we conclude that, consistent with the Indiana Supreme Court’s approach in Sheehan Construction Co., Inc. v. Continental Casualty Co., 935 N.E.2d 160 (2010), the Policies’ ‘known claim’ exclusionary language controls,” Judge Cale Bradford wrote in Indiana Insurance Company v. Patricia Kopetsky, and KB Home Indiana Inc., 49A02-1304-PL-340.

That case requires the court to start with the policy language and determine if the loss would be covered under the general coverage clause and if any exclusions apply that would preclude coverage, without regard to whether the loss constituted an “economic loss.”

George Kopetsky knew of the contamination no later than May 2002, so coverage is barred for the second through fourth years, regardless of the jury’s finding of any prior knowledge. Any finding of knowledge of contamination prior to the first year of coverage only applies to the first year, Bradford wrote.

The original decision is affirmed in all other respects.  
 

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  1. A traditional parade of attorneys? Really Evansville? Y'all need to get out more. When is the traditional parade of notaries? Nurses? Sanitation workers? Pole dancers? I gotta wonder, do throngs of admiring citizens gather to laud these marching servants of the constitution? "Show us your billing records!!!" Hoping some video gets posted. Ours is not a narcissistic profession by any chance, is it? Nah .....

  2. My previous comment not an aside at court. I agree with smith. Good call. Just thought posting here a bit on the if it bleeds it leads side. Most attorneys need to think of last lines of story above.

  3. Hello everyone I'm Gina and I'm here for the exact same thing you are. I have the wonderful joy of waking up every morning to my heart being pulled out and sheer terror of what DCS is going to Throw at me and my family today.Let me start from the !bebeginning.My daughter lost all rights to her 3beautiful children due to Severe mental issues she no longer lives in our state and has cut all ties.DCS led her to belive that once she done signed over her right the babies would be with their family. We have faught screamed begged and anything else we could possibly due I hired a lawyer five grand down the drain.You know all I want is my babies home.I've done everything they have even asked me to do.Now their saying I can't see my grandchildren cause I'M on a prescription for paipain.I have a very rare blood disease it causes cellulitis a form of blood poisoning to stay dormant in my tissues and nervous system it also causes a ,blood clotting disorder.even with the two blood thinners I'm on I still Continue to develop them them also.DCS knows about my illness and still they refuse to let me see my grandchildren. I Love and miss them so much Please can anyone help Us my grandchildren and I they should be worrying about what toy there going to play with but instead there worrying about if there ever coming home again.THANK YOU DCS FOR ALL YOU'VE DONE. ( And if anyone at all has any ideals or knows who can help. Please contact (765)960~5096.only serious callers

  4. He must be a Rethuglican, for if from the other side of the aisle such acts would be merely personal and thus not something that attaches to his professional life. AND ... gotta love this ... oh, and on top of talking dirty on the phone, he also, as an aside, guess we should mention, might be important, not sure, but .... "In addition to these allegations, Keaton was accused of failing to file an appeal after he collected advance payment from a client seeking to challenge a ruling that the client repay benefits because of unreported income." rimshot

  5. I am not a fan of some of the 8.4 discipline we have seen for private conduct-- but this was so egregious and abusive and had so many points of bad conduct relates to the law and the lawyer's status as a lawyer that it is clearly a proper and just disbarment. A truly despicable account of bad acts showing unfit character to practice law. I applaud the outcome.

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