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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. A traditional parade of attorneys? Really Evansville? Y'all need to get out more. When is the traditional parade of notaries? Nurses? Sanitation workers? Pole dancers? I gotta wonder, do throngs of admiring citizens gather to laud these marching servants of the constitution? "Show us your billing records!!!" Hoping some video gets posted. Ours is not a narcissistic profession by any chance, is it? Nah .....

  2. My previous comment not an aside at court. I agree with smith. Good call. Just thought posting here a bit on the if it bleeds it leads side. Most attorneys need to think of last lines of story above.

  3. Hello everyone I'm Gina and I'm here for the exact same thing you are. I have the wonderful joy of waking up every morning to my heart being pulled out and sheer terror of what DCS is going to Throw at me and my family today.Let me start from the !bebeginning.My daughter lost all rights to her 3beautiful children due to Severe mental issues she no longer lives in our state and has cut all ties.DCS led her to belive that once she done signed over her right the babies would be with their family. We have faught screamed begged and anything else we could possibly due I hired a lawyer five grand down the drain.You know all I want is my babies home.I've done everything they have even asked me to do.Now their saying I can't see my grandchildren cause I'M on a prescription for paipain.I have a very rare blood disease it causes cellulitis a form of blood poisoning to stay dormant in my tissues and nervous system it also causes a ,blood clotting disorder.even with the two blood thinners I'm on I still Continue to develop them them also.DCS knows about my illness and still they refuse to let me see my grandchildren. I Love and miss them so much Please can anyone help Us my grandchildren and I they should be worrying about what toy there going to play with but instead there worrying about if there ever coming home again.THANK YOU DCS FOR ALL YOU'VE DONE. ( And if anyone at all has any ideals or knows who can help. Please contact (765)960~5096.only serious callers

  4. He must be a Rethuglican, for if from the other side of the aisle such acts would be merely personal and thus not something that attaches to his professional life. AND ... gotta love this ... oh, and on top of talking dirty on the phone, he also, as an aside, guess we should mention, might be important, not sure, but .... "In addition to these allegations, Keaton was accused of failing to file an appeal after he collected advance payment from a client seeking to challenge a ruling that the client repay benefits because of unreported income." rimshot

  5. I am not a fan of some of the 8.4 discipline we have seen for private conduct-- but this was so egregious and abusive and had so many points of bad conduct relates to the law and the lawyer's status as a lawyer that it is clearly a proper and just disbarment. A truly despicable account of bad acts showing unfit character to practice law. I applaud the outcome.

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