ILNews

COA adopts 'site-specific' approach

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For the first time, the Indiana Court of Appeals adopted a site-specific approach to rule on an insurance case with multiple policies in several states. The appellate court had been following a uniform-contract-interpretation approach when ruling on choice of law questions in contract actions.

Since 1978, the Court of Appeals has generally followed the Restatement (Second) of Conflict of Laws (1971), when confronted with a choice of law issue. But in analyzing its approach of the uniform-contract-interpretation in National Union Fire Insurance Co. of Pittsburgh, PA., et al. v. Standard Fusee Corp., No. 49A04-0811-CV-665, the judges decided the site-specific approach should be used.

National Union Fire and other insurers of Standard Fusee Corp. appealed partial summary judgment entered for SFC, declaring the insurers' duty to defend in environmental actions involving sites in California and Indiana. The trial court applied Indiana substantive law to interpret the insurance policies, instead of Maryland law, where SFC is headquartered and the insurance premiums were paid.

The appellate judges examined caselaw and the Restatement regarding choice of law issues to determine the site-specific approach should be followed in situations like the one in the instant case. The uniform-contract-interpretation approach says the law of a single forum governs the interpretation of coverage under a casualty insurance policy for multi-state claims arising from environmental damage in multiple jurisdictions. With that approach, the COA has held the state with the most sites is the principal location of the insured risk.

Under the site-specific approach, the courts would be inclined to treat a single policy insuring multiple sites as single policies insuring each individual risk, and if an issue arose at one site, the policy would be interpreted under the law of that state.

"To follow the uniform-contract-interpretation approach and apply the law of a single state to a dispute involving several states is to minimize the natural interests of the other states in the determination of the issues arising under the insurance contract," wrote Judge James Kirsch.

Following the uniform-contract-interpretation approach would be contrary to the general principles listed in Section 6 and the rationale behind Section 193 of the Restatement, he explained.

Since Indiana has the most significant relationship with the contamination, Indiana law should apply here; California law should apply to the California site, wrote Judge Kirsch. The COA remanded for the trial court to apply California law to any issues raised by the insurers that relate to that site.

The appellate court also affirmed the insurers had reasonable notice of the environmental proceedings in Indiana and California; the insurance policies' pollution exclusions are ambiguous and unenforceable under American States Ins. Co. v. Kiger, 662 N.E.2d 945 (Ind. 1996), and don't relieve their duty to defend; and that SFC's entry into Indiana's voluntary remediation program constitutes a suit for purposes of the insurance policies.

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  1. Ah yes... Echoes of 1963 as a ghostly George Wallace makes his stand at the Schoolhouse door. We now know about the stand of personal belief over service to all constituents at the Carter County Clerk door. The results are the same, bigotry unable to follow the directions of the courts and the courts win. Interesting to watch the personal belief take a back seat rather than resign from a perception of local power to make the statement.

  2. An oath of office, does it override the conscience? That is the defense of overall soldier who violates higher laws, isnt it? "I was just following orders" and "I swore an oath of loyalty to der Fuhrer" etc. So this is an interesting case of swearing a false oath and then knowing that it was wrong and doing the right thing. Maybe they should chop her head off too like the "king's good servant-- but God's first" like St Thomas More. ...... We wont hold our breath waiting for the aclu or other "civil liberterians" to come to her defense since they are all arrayed on the gay side, to a man or should I say to a man and womyn?

  3. Perhaps we should also convene a panel of independent anthropological experts to study the issues surrounding this little-known branch of human sacrifice?

  4. I'm going to court the beginning of Oct. 2015 to establish visitation and request my daughters visits while she is in jail. I raised my grandchild for the first two and half years. She was born out of wedlock and the father and his adopted mother wantwd her aborted, they went as far as sueing my daughter for abortion money back 5mo. After my grandchild was born. Now because of depression and drug abuse my daughter lost custody 2 and a half years ago. Everyting went wrong in court when i went for custody my lawyer was thrown out and a replacment could only stay 45 min. The judge would not allow a postponement. So the father won. Now he is aleinating me and my daughter. No matter the amount of time spent getting help for my daughter and her doing better he runs her in the ground to the point of suicide because he wants her to be in a relationship with him. It is a sick game of using my grandchild as a pawn to make my daughter suffer for not wanting to be with him. I became the intervener in the case when my daughter first got into trouble. Because of this they gave me her visitation. Im hoping to get it again there is questions of abuse on his part and I want to make sure my grandchild is doing alright. I really dont understand how the parents have rights to walk in and do whatever they want when the refuse to stand up and raise the child at first . Why should it take two and a half years to decide you want to raise your child.The father used me so he could finish college get a job and stop paying support by getting custody. Support he was paying my daughter that I never saw.

  5. Pence said when he ordered the investigation that Indiana residents should be troubled by the allegations after the video went viral. Planned Parenthood has asked the government s top health scientists at the National Institutes of Health to convene a panel of independent experts to study the issues surrounding the little-known branch of medicine.

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