ILNews

Court divides over injury claim under insurance policy

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Court of Appeals split today on whether a couple’s emotional distress claim constitutes “bodily injury” under their uninsured motorist coverage.

John and Sarah Taele witnessed in the rear-view mirror of their car the car accident that killed their daughter. She was riding in the car behind them when it was hit by an uninsured motorist. A piece of debris from the accident may have hit their car but they were not injured.  

The Taeles filed a complaint against State Farm Mutual Automobile Insurance Co. seeking uninsured motorist benefits for their emotional distress claims. State Farm claimed it didn’t have to pay the UM coverage because the Taeles didn’t sustain any “bodily injury” in the accident as defined by their policy and their alleged emotional distress from seeing their daughter die didn’t qualify as such an injury. The trial court granted summary judgment in favor of the insurer.

In John Taele and Sarah Taele v. State Farm Mutual Automobile Insurance Co., No. 06A01-1004-CT-259, the judges took into account several previous cases in their decisions to affirm or reverse the trial court, including Shuamber v. Henderson, 579 N.E.2d 452 (Ind. 1991), in which the Indiana Supreme Court established the “direct impact” test in negligent infliction of emotional distress claims; and Groves v. Taylor, 749 N.E.2d 569 (Ind. 2000), which held if the direct impact test is not met, a bystander may establish direct involvement by proving he or she witnessed or came onto the scene soon after the death or severe injury of a loved one caused by the defendant’s negligent conduct.

Judges Michael Barnes and Ezra Friedlander concluded based on State Farm Mutual Automobile Insurance Co. v. Jakupko, 881 N.E.2d 654 (Ind. 2008), Elliot v. Allstate Ins. Co., 881 N.E.2d 662 (Ind. 2008), State Farm Mutual Ins. Co. v. D.L.B., 881 N.E.2d 665 (Ind. 2008), Bush v. State Farm Mut. Ins. Co., 905 N.E.2d 1003 (Ind. 2009), and Armstrong v. Federated Mutual Ins. Co., 785 N.E.2d 284 (Ind. Ct. App. 2003), that the Taeles aren’t entitled to recover UM benefits because they weren’t directly impacted or directly physically injured by the accident.

“It does seem slightly incongruous that persons having NIED claims arising in a Shuamber-type scenario may be entitled to recover UM benefits for ‘bodily injury,’ but those having equally valid NIED claims arising in a Groves-type scenario are not so entitled,” wrote Judge Barnes. “Nonetheless, we presume that if our supreme court intended Groves-type claims to be covered under the definition of ‘bodily injury’ for purposes of insurance policy and UM statutory interpretation, it would have mentioned that case at some point in Jakupko, Elliott, D.L.B., or Bush.”

Judge Terry Crone dissented from his colleagues’ view that the Taeles didn’t sustain any “direct impact” in the accident and that their NIED claim arises under the Groves rule, not the Shuamber test. He compared the instant case to Conder v. Wood, 716 N.E.2d 432 (Ind. 1999), in which the Supreme Court held that plaintiff Wood sustained the requisite direct impact necessary to maintain an NIED action when she pounded on the side of the defendant’s truck, which hit her friend, to try to get the truck to stop before it crushed her friend. A piece of debris hit the windshield of the Taeles’ car and “in my view, this is sufficient to establish a ‘direct impact’ for purposes of the modified impact rule,” he wrote.

“The critical commonality here is that both Wood and the Taeles personally witnessed the tragic accidents that killed their friend and daughter, respectively, and thus were ‘directly involved’ in the tortfeasors’ negligent conduct,” he wrote, adding he would reverse summary judgment and remand 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. "associates are becoming more mercenary. The path to partnership has become longer and more difficult so they are chasing short-term gains like high compensation." GOOD FOR THEM! HELL THERE OUGHT TO BE A UNION!

  2. Let's be honest. A glut of lawyers out there, because law schools have overproduced them. Law schools dont care, and big law loves it. So the firms can afford to underpay them. Typical capitalist situation. Wages have grown slowly for entry level lawyers the past 25 years it seems. Just like the rest of our economy. Might as well become a welder. Oh and the big money is mostly reserved for those who can log huge hours and will cut corners to get things handled. More capitalist joy. So the answer coming from the experts is to "capitalize" more competition from nonlawyers, and robots. ie "expert systems." One even hears talk of "offshoring" some legal work. thus undercutting the workers even more. And they wonder why people have been pulling for Bernie and Trump. Hello fools, it's not just the "working class" it's the overly educated suffering too.

  3. And with a whimpering hissy fit the charade came to an end ... http://baltimore.cbslocal.com/2016/07/27/all-charges-dropped-against-all-remaining-officers-in-freddie-gray-case/ WHISTLEBLOWERS are needed more than ever in a time such as this ... when politics trump justice and emotions trump reason. Blue Lives Matter.

  4. "pedigree"? I never knew that in order to become a successful or, for that matter, a talented attorney, one needs to have come from good stock. What should raise eyebrows even more than the starting associates' pay at this firm (and ones like it) is the belief systems they subscribe to re who is and isn't "fit" to practice law with them. Incredible the arrogance that exists throughout the practice of law in this country, especially at firms like this one.

  5. Finally, an official that realizes that reducing the risks involved in the indulgence in illicit drug use is a great way to INCREASE the problem. What's next for these idiot 'proponents' of needle exchange programs? Give drunk drivers booze? Give grossly obese people coupons for free junk food?

ADVERTISEMENT