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. How nice, on the day of my car accident on the way to work at the Indiana Supreme Court. Unlike the others, I did not steal any money or do ANYTHING unethical whatsoever. I am suing the Indiana Supreme Court and appealed the failure of the district court in SDIN to protect me. I am suing the federal judge because she failed to protect me and her abandonment of jurisdiction leaves her open to lawsuits because she stripped herself of immunity. I am a candidate for Indiana Supreme Court justice, and they imposed just enough sanction so that I am made ineligible. I am asking the 7th Circuit to remove all of them and appoint me as the new Chief Justice of Indiana. That's what they get for dishonoring my sacrifice and and violating the ADA in about 50 different ways.

  2. Can anyone please help this mother and child? We can all discuss the mother's rights, child's rights when this court only considered the father's rights. It is actually scarey to think a man like this even being a father period with custody of this child. I don't believe any of his other children would have anything good to say about him being their father! How many people are afraid to say anything or try to help because they are afraid of Carl. He's a bully and that his how he gets his way. Please someone help this mother and child. There has to be someone that has the heart and the means to help this family.

  3. I enrolled America's 1st tax-free Health Savings Account (HSA) so you can trust me. I bet 1/3 of my clients were lawyers because they love tax-free deposits, growth and withdrawals or total tax freedom. Most of the time (always) these clients are uninformed about insurance law. Employer-based health insurance is simple if you read the policy. It says, Employers (lawyers) and employees who are working 30-hours-per-week are ELIGIBLE for insurance. Then I show the lawyer the TERMINATION clause which states: When you are no longer ELIGIBLE! Then I ask a closing question (sales term) to the lawyer which is, "If you have a stroke or cancer and become too sick to work can you keep your health insurance?" If the lawyer had dependent children they needed a "Dependent Conversion Privilege" in case their child got sick or hurt which the lawyers never had. Lawyers are pretty easy sales. Save premium, eliminate taxes and build wealth!

  4. Ok, so cheap laughs made about the Christian Right. hardiharhar ... All kidding aside, it is Mohammad's followers who you should be seeking divine protection from. Allahu Akbar But progressives are in denial about that, even as Europe crumbles.

  5. Father's rights? What about a mothers rights? A child's rights? Taking a child from the custody of the mother for political reasons! A miscarriage of justice! What about the welfare of the child? Has anyone considered parent alienation, the father can't erase the mother from the child's life. This child loves the mother and the home in Wisconsin, friends, school and family. It is apparent the father hates his ex-wife more than he loves his child! I hope there will be a Guardian Ad Litem, who will spend time with and get to know the child, BEFORE being brainwashed by the father. This is not just a child! A little person with rights and real needs, a stable home and a parent that cares enough to let this child at least finish the school year, where she is happy and comfortable! Where is the justice?

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