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. I commend Joe for standing up to this tyrant attorney! You ask why? Well I’m one of David Steele victims. I was in desperate need of legal help to protect my child, David saw an opportunity, and he demanded I pay him $3000. Cash. As I received motions and orders from court he did nothing! After weeks of emails asking him to address the legal issues, he responded by saying he was “on vacation “and I should be so lucky to have “my attorney” reply. Finally after lie on top of lie I asked for a full refund, which he refused. He then sent me “bills” for things he never did, such as, his appearance in the case and later claimed he withdrew. He never filed one document / motion for my case! When I finally demanded he refund my money he then turn to threats which scared my family for our lives. It seem unreal we couldn’t believe this guy. I am now over $100,000 in debt digging out of the legal mess he caused my family. Later I was finally able to hire another law office. I met Joe and we worked diligently on my case. I soon learn Joe had a passion for helping people. As anyone who has been through a legal battle it is exhausting. Joe was always more than happy to help or address an issue. Joe was knowledgeable about all my concerns at the same time he was able to reduce the stress and anxieties of my case. He would stay late and come in early, he always went the extra mile to help in any way he could. I can only imagine what Joe and his family has been through, my prayers go out to him and all the victims.

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  5. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise