Court of Appeals finds insurer’s intent is not clear in policy language

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Finding language in an insurance policy to be ambiguous, the Court of Appeals reversed and remanded a trial court’s entry of summary judgment for an insurance company.

FLM LLC leased property in Indianapolis to International Recycling Inc. Daimler Chrysler Corp. entered into purchase order transactions with IRI for the removal and reuse or disposal of foundry sand generated from Chrysler’s Indianapolis foundry. IRI started depositing the sand onto the FLM property in May 1999.

In 2002, Chrysler stopped paying and IRI could no longer fund the removal of the sand from FLM’s property. IRI stopped paying rent to FLM in 2003 and abandoned more than 100,000 tons of sand on the property.

FLM filed a complaint against IRI’s insurer Cincinnati Insurance Co. in January 2005, seeking declaration that IRI was covered under the commercial general liability policy and the umbrella policy for the environmental liabilities asserted by the state and the city.

In March 2005, the insurance company filed its answer and counterclaim, seeking a declaration that there was no coverage under the policies for the claims.

The trial court granted partial summary judgment in November 2008 in favor of Cincinnati and denied FLM’s and Chrysler’s cross-motions for summary judgment.

On appeal, FLM and Chrysler raised the issue of whether IRI’s abandonment of sand constitutes a “wrongful entry” or “invasion of the right of private occupancy” covered by the “personal injury” provisions of the insurance policies.

The COA focused on determining whether any ambiguity existed in the language of the policies. It cited Travelers Indem. Co. v. Summit Corp. of Am. 715 N.E.2d 926 (Ind. Ct. App. 1999), finding the reasoning underlying the Summit decision applies here.

Writing for the majority, Judge James Kirsch concluded, “Cincinnati’s personal injury provision contained language identical to the language in the personal injury provision at issue in Summit, and just as the court in that case determined such language to be ambiguous, we likewise conclude that the language used in Cincinnati’s policies is ambiguous. Because the Policies are ambiguous, we must construe the language against the insurer and in favor of coverage.”


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  1. This is ridiculous. Most JDs not practicing law don't know squat to justify calling themselves a lawyer. Maybe they should try visiting the inside of a courtroom before they go around calling themselves lawyers. This kind of promotional BS just increases the volume of people with JDs that are underqualified thereby dragging all the rest of us down likewise.

  2. I think it is safe to say that those Hoosier's with the most confidence in the Indiana judicial system are those Hoosier's who have never had the displeasure of dealing with the Hoosier court system.

  3. 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

  4. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  5. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.