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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. I gave tempparry guardship to a friend of my granddaughter in 2012. I went to prison. I had custody. My daughter went to prison to. We are out. My daughter gave me custody but can get her back. She was not order to give me custody . but now we want granddaughter back from friend. She's 14 now. What rights do we have

  2. This sure is not what most who value good governance consider the Rule of Law to entail: "In a letter dated March 2, which Brizzi forwarded to IBJ, the commission dismissed the grievance “on grounds that there is not reasonable cause to believe that you are guilty of misconduct.”" Yet two month later reasonable cause does exist? (Or is the commission forging ahead, the need for reasonable belief be damned? -- A seeming violation of the Rules of Profession Ethics on the part of the commission) Could the rule of law theory cause one to believe that an explanation is in order? Could it be that Hoosier attorneys live under Imperial Law (which is also a t-word that rhymes with infamy) in which the Platonic guardians can do no wrong and never owe the plebeian class any explanation for their powerful actions. (Might makes it right?) Could this be a case of politics directing the commission, as celebrated IU Mauer Professor (the late) Patrick Baude warned was happening 20 years ago in his controversial (whisteblowing) ethics lecture on a quite similar topic: http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1498&context=ilj

  3. I have a case presently pending cert review before the SCOTUS that reveals just how Indiana regulates the bar. I have been denied licensure for life for holding the wrong views and questioning the grand inquisitors as to their duties as to state and federal constitutional due process. True story: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS Shorter, Amici brief serving to frame issue as misuse of govt licensure: https://www.scribd.com/doc/312841269/Thomas-More-Society-Amicus-Brown-v-Ind-Bd-of-Law-Examiners

  4. Here's an idea...how about we MORE heavily regulate the law schools to reduce the surplus of graduates, driving starting salaries up for those new grads, so that we can all pay our insane amount of student loans off in a reasonable amount of time and then be able to afford to do pro bono & low-fee work? I've got friends in other industries, radiology for example, and their schools accept a very limited number of students so there will never be a glut of new grads and everyone's pay stays high. For example, my radiologist friend's school accepted just six new students per year.

  5. I totally agree with John Smith.

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