ILNews

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

Back to TopCommentsE-mailPrintBookmark and Share

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.”
 

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

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Bill Satterlee is, indeed, a true jazz aficionado. Part of my legal career was spent as an associate attorney with Hoeppner, Wagner & Evans in Valparaiso. Bill was instrumental (no pun intended) in introducing me to jazz music, thereby fostering my love for this genre. We would, occasionally, travel to Chicago on weekends and sit in on some outstanding jazz sessions at Andy's on Hubbard Street. Had it not been for Bill's love of jazz music, I never would have had the good fortune of hearing it played live at Andy's. And, most likely, I might never have begun listening to it as much as I do. Thanks, Bill.

  2. The child support award is many times what the custodial parent earns, and exceeds the actual costs of providing for the children's needs. My fiance and I have agreed that if we divorce, that the children will be provided for using a shared checking account like this one(http://www.mediate.com/articles/if_they_can_do_parenting_plans.cfm) to avoid the hidden alimony in Indiana's child support guidelines.

  3. Fiat justitia ruat caelum is a Latin legal phrase, meaning "Let justice be done though the heavens fall." The maxim signifies the belief that justice must be realized regardless of consequences.

  4. Indiana up holds this behavior. the state police know they got it made.

  5. Additional Points: -Civility in the profession: Treating others with respect will not only move others to respect you, it will show a shared respect for the legal system we are all sworn to protect. When attorneys engage in unnecessary personal attacks, they lose the respect and favor of judges, jurors, the person being attacked, and others witnessing or reading the communication. It's not always easy to put anger aside, but if you don't, you will lose respect, credibility, cases, clients & jobs or job opportunities. -Read Rule 22 of the Admission & Discipline Rules. Capture that spirit and apply those principles in your daily work. -Strive to represent clients in a manner that communicates the importance you place on the legal matter you're privileged to handle for them. -There are good lawyers of all ages, but no one is perfect. Older lawyers can learn valuable skills from younger lawyers who tend to be more adept with new technologies that can improve work quality and speed. Older lawyers have already tackled more legal issues and worked through more of the problems encountered when representing clients on various types of legal matters. If there's mutual respect and a willingness to learn from each other, it will help make both attorneys better lawyers. -Erosion of the public trust in lawyers wears down public confidence in the rule of law. Always keep your duty to the profession in mind. -You can learn so much by asking questions & actively listening to instructions and advice from more experienced attorneys, regardless of how many years or decades you've each practiced law. Don't miss out on that chance.

ADVERTISEMENT