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Endorsement clause makes insurance policy ambiguous

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Describing an insurance company’s policy as “inherently ambiguous,” the Indiana Court of Appeals has reserved the summary judgment granted by the trial court.

The COA agreed with the appellants that the trial court erred in granting summary judgment in favor of Indiana Insurance Co. because the umbrella policy contained contradictions. In Gary Hammerstone, Susan Hammerstone, Palmor Products, Inc., Northhampton Farm Bureau Cooperative Association, and Cannis-Bilco Distributors, Inc., v. Indiana Insurance Co., 06A04-1211-PL-595, the Court of Appeals reversed the trial court’s order and remanded for more proceedings.

Gary Hammerstone severely injured his right hand and arm while trying to unclog the Trac-Vac, a vacuuming device for yard debris like mulched leaves, grass and sticks. In December 2009, he and his wife, Susan, filed a complaint in Pennsylvania against Palmor Products, which designs and manufactures the vacuum, and Northhampton Farm Bureau Cooperative, which sells and services the Trac-Vac. Later Cannis-Bilco Distributors, a distributor of Palmor, was added as a defendant.

Hammerstone alleged Palmor, Northhampton and CBD were, among other things, negligent; failed to property warn of the hazards of the Trac-Vac; and failed to adequately inspect the machine for defects.

Indiana Insurance, the primary insurer of Palmor, filed motions for summary judgment against Palmor, Northhampton and CBD as well as the Hammerstones. The appellants subsequently filed cross-motions for summary judgment against Indiana Insurance.

In appealing the trial court’s order, the appellants argue the lower court erred when it found the insurance company’s umbrella policy unambiguously denied covered. They alleged the policy was ambiguous because the declarations page clearly stated the policy included coverage for products-completed operations hazard but later language maintained the coverage did not apply to injuries and damages included within the operations hazard.

The COA found the umbrella policy contains an endorsement that contradicts its language defining products-completed operations hazard as “bodily injury” and “property damage.”

“Thus the Umbrella Policy states that it both provides $2,000,000 of coverage for products-complete operations and that the insurance does not apply to products-completed operations hazard injuries,” Judge James Krisch wrote for the court. “As a result, the Umbrella Policy is inherently ambiguous.”

 



 

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  1. It is amazing how selectively courts can read cases and how two very similar factpatterns can result in quite different renderings. I cited this very same argument in Brown v. Bowman, lost. I guess it is panel, panel, panel when one is on appeal. Sad thing is, I had Sykes. Same argument, she went the opposite. Her Rooker-Feldman jurisprudence is now decidedly unintelligible.

  2. November, 2014, I was charged with OWI/Endangering a person. I was not given a Breathalyzer test and the arresting officer did not believe that alcohol was in any way involved. I was self-overmedicated with prescription medications. I was taken to local hospital for blood draw to be sent to State Tox Lab. My attorney gave me a cookie-cutter plea which amounts to an ALCOHOL-related charge. Totally unacceptable!! HOW can I get my TOX report from the state lab???

  3. My mother got temporary guardianship of my children in 2012. my husband and I got divorced 2015 the judge ordered me to have full custody of all my children. Does this mean the temporary guardianship is over? I'm confused because my divorce papers say I have custody and he gets visits and i get to claim the kids every year on my taxes. So just wondered since I have in black and white that I have custody if I can go get my kids from my moms and not go to jail?

  4. Someone off their meds? C'mon John, it is called the politics of Empire. Get with the program, will ya? How can we build one world under secularist ideals without breaking a few eggs? Of course, once it is fully built, is the American public who will feel the deadly grip of the velvet glove. One cannot lay down with dogs without getting fleas. The cup of wrath is nearly full, John Smith, nearly full. Oops, there I go, almost sounding as alarmist as Smith. Guess he and I both need to listen to this again: https://www.youtube.com/watch?v=CRnQ65J02XA

  5. Charles Rice was one of the greatest of the so-called great generation in America. I was privileged to count him among my mentors. He stood firm for Christ and Christ's Church in the Spirit of Thomas More, always quick to be a good servant of the King, but always God's first. I had Rice come speak to 700 in Fort Wayne as Obama took office. Rice was concerned that this rise of aggressive secularism and militant Islam were dual threats to Christendom,er, please forgive, I meant to say "Western Civilization". RIP Charlie. You are safe at home.

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