Court to take landlord-tenant insurance query

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The Indiana Supreme Court has accepted a certified question from a federal judge, and will now consider a state law issue that it hasn't before: whether a tenant is considered a co-insured under a landlord's fire insurance policy if there's no express agreement saying otherwise.

An order dated Monday was posted online today in Auto-Owners Insurance Company a/s/o David M. Brown v. Carolyn Young, d/b/a Peddlers Corner Cafe, No. 94S00-0909-CQ-417. The case comes from the Southern District of Indiana's New Albany division, where U.S. District Judge Sarah Evans Barker asked the state justices to weigh in on the issue according to Indiana Appellate Rule 64.

Filed in September 2008, the case involves an Orange County woman who leased property for a cafe from plaintiff David M. Brown, who was insured by the Michigan-based company Auto-Owners. The two are siblings and didn't have a formal written lease agreement, though they discussed generally the terms of the agreement. She said Brown told her he had building insurance and that she'd only need coverage for her personal property and assets, and that's what she obtained, according to the complaint.

A September 2006 fire damaged the property and Brown received nearly $84,000 from his insurance carrier, but just before the two-year-statute of limitations ran out Auto-Owners filed a complaint that alleged the fire and damage was a result of Young's negligence and that it should be able to recover the payments to Brown.

In a motion to dismiss, Young contended that Auto-Owners has no subrogation rights against her because her interests were insured under Brown's insurance policy. Judge Barker analyzed the issue and relied on Sutton v. Jondahl, 532 P. 2d 478 (C.App.Okla. 1975), which said that a tenant should be deemed a co-insured under a landlord's fire policy if there isn't a written agreement. But since that precedent isn't controlling here and this is an issue of first impression for Indiana law, Judge Barker asked the Indiana Supreme Court to consider the question.

With that, Young's federal motion to dismiss has been administratively closed pending a resolution by the Indiana Supreme Court. The state court wants simultaneous briefing in the case, and the main and response briefs are all due by Dec. 2. Any oral arguments will be scheduled at a later time, the court's order says.


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  1. If a class action suit or other manner of retribution is possible, count me in. I have email and voicemail from the man. He colluded with opposing counsel, I am certain. My case was damaged so severely it nearly lost me everything and I am still paying dearly.

  2. There's probably a lot of blame that can be cast around for Indiana Tech's abysmal bar passage rate this last February. The folks who decided that Indiana, a state with roughly 16,000 to 18,000 attorneys, needs a fifth law school need to question the motives that drove their support of this project. Others, who have been "strong supporters" of the law school, should likewise ask themselves why they believe this institution should be supported. Is it because it fills some real need in the state? Or is it, instead, nothing more than a resume builder for those who teach there part-time? And others who make excuses for the students' poor performance, especially those who offer nothing more than conspiracy theories to back up their claims--who are they helping? What evidence do they have to support their posturing? Ultimately, though, like most everything in life, whether one succeeds or fails is entirely within one's own hands. At least one student from Indiana Tech proved this when he/she took and passed the February bar. A second Indiana Tech student proved this when they took the bar in another state and passed. As for the remaining 9 who took the bar and didn't pass (apparently, one of the students successfully appealed his/her original score), it's now up to them (and nobody else) to ensure that they pass on their second attempt. These folks should feel no shame; many currently successful practicing attorneys failed the bar exam on their first try. These same attorneys picked themselves up, dusted themselves off, and got back to the rigorous study needed to ensure they would pass on their second go 'round. This is what the Indiana Tech students who didn't pass the first time need to do. Of course, none of this answers such questions as whether Indiana Tech should be accredited by the ABA, whether the school should keep its doors open, or, most importantly, whether it should have even opened its doors in the first place. Those who promoted the idea of a fifth law school in Indiana need to do a lot of soul-searching regarding their decisions. These same people should never be allowed, again, to have a say about the future of legal education in this state or anywhere else. Indiana already has four law schools. That's probably one more than it really needs. But it's more than enough.

  3. This man Steve Hubbard goes on any online post or forum he can find and tries to push his company. He said court reporters would be obsolete a few years ago, yet here we are. How does he have time to search out every single post about court reporters and even spy in private court reporting forums if his company is so successful???? Dude, get a life. And back to what this post was about, I agree that some national firms cause a huge problem.

  4. rensselaer imdiana is doing same thing to children from the judge to attorney and dfs staff they need to be investigated as well

  5. Sex offenders are victims twice, once when they are molested as kids, and again when they repeat the behavior, you never see money spent on helping them do you. That's why this circle continues