ILNews

High court addresses provision for 1st time

Back to TopCommentsE-mailPrintBookmark and Share


The Indiana Supreme Court affirmed the denial of summary judgment for an insurance company, finding the exclusion in the policy for injuries covered by workers’ compensation doesn’t apply.

The high court was asked for the first time to review a provision of the Worker’s Compensation Act. The provision states that anyone contracting for more than $1,000 of work may be liable to the same extent as the contractor for injuries under the Worker’s Compensation Act if the person hiring the contractor doesn’t verify that the contractor has workers’ compensation insurance liability.

Farmers Rick and Katrina Taylor hired Sherlock Contract Painting. One of Sherlock’s employees, Christopher Collis, was injured on the job. He discovered Sherlock didn’t have workers’ compensation benefits, which the Taylors didn’t verify before hiring Sherlock. Collis then sued the Taylors for benefits under Indiana Code Section 22-3-2-14(b).

The Taylors were insured with Everett Cash Mutual Insurance Co. and had a farm personal liability policy for “all risk” coverage. Everett Cash denied coverage for Collis’ accident. The Taylors then sued for breach of contract. The trial judge denied summary judgment for Everett Cash; a split Indiana Court of Appeals reversed.

The Taylors argued Collis’ claim is a premises liability claim, so their policy should cover it. Everett Cash argued Collis’ claim is for workers’ compensation benefits, which are excluded under the policy. It claimed the occurrence under the policy must be an accident, and that the claim arose because of the Taylors’ failure to verify workers’ compensation benefits.

In Everett Cash Mutual Insurance Co. v. Rick and Katrina Taylor, No. 02S03-0909-CV-395, the Supreme Court ruled the claim was a result of an accident, so it was an occurrence as defined by the policy. The justices also found the language in the policy that Everett Cash claims to exclude this coverage to be ambiguous. It’s possible to read the language to mean that if not for I.C. Section 22-3-2-14(b), Collis wouldn’t have asserted the Taylors were responsible for his injuries and so Everett Cash wouldn’t have to pay, wrote Justice Frank Sullivan.

It’s also possible to interpret the exclusion language as to apply to employers who are directly within the application of the Worker’s Compensation Act. Farm or agricultural employees are excluded under the act and the Taylors aren’t required to have workers’ compensation benefits because they own and work a farm.

One could conclude that the exemption only clarifies that the policy provides no coverage in the conventional worker’s compensation context when an employee seeks the benefits payable by an insured under the law.

“It would be beyond the ordinary understanding of the worker’s compensation system to extend the exclusion to the matter-of-first-impression scenario here – where a claim is filed against an insured by an injured worker in the employ of a third party who did not comply with its obligations under the Act,” wrote the justice. “Given that the Taylors could not have even purchased worker’s compensation insurance to protect themselves from claims by Sherlock’s employees, it is hard to imagine them thinking that an exclusion regarding worker’s compensation could preclude them from having protection from a lawsuit by someone injured in an accident on their property.”

The justices held for an insurance policy to exclude such a claim as the one in the instant case, the exclusion must be more explicit than the language used in the Everett Cash policy.
 

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. Welcome to Hendricks County where local and state statutes (especially Indiana Class C misdemeanors) are given a higher consideration than Federal statues and active duty military call-ups.

  2. If real money was spent on this study, what a shame. And if some air-head professor tries to use this to advance a career, pity the poor student. I am approaching a time that i (and others around me) should be vigilant. I don't think I'm anywhere near there yet, but seeing the subject I was looking forward to something I might use to look for some benchmarks. When finally finding my way to the hidden questionnaire all I could say to myself was...what a joke. Those are open and obvious signs of any impaired lawyer (or non-lawyer, for that matter), And if one needs a checklist to discern those tell-tale signs of impairment at any age, one shouldn't be practicing law. Another reason I don't regret dropping my ABA membership some number of years ago.

  3. The case should have been spiked. Give the kid a break. He can serve and maybe die for Uncle Sam and can't have a drink? Wow. And they won't even let him defend himself. What a gross lack of prosecutorial oversight and judgment. WOW

  4. I work with some older lawyers in the 70s, 80s, and they are sharp as tacks compared to the foggy minded, undisciplined, inexperienced, listless & aimless "youths" being churned out by the diploma mill law schools by the tens of thousands. A client is generally lucky to land a lawyer who has decided to stay in practice a long time. Young people shouldn't kid themselves. Experience is golden especially in something like law. When you start out as a new lawyer you are about as powerful as a babe in the cradle. Whereas the silver halo of age usually crowns someone who can strike like thunder.

  5. YES I WENT THROUGH THIS BEFORE IN A DIFFERENT SITUATION WITH MY YOUNGEST SON PEOPLE NEED TO LEAVE US ALONE WITH DCS IF WE ARE NOT HURTING OR NEGLECT OUR CHILDREN WHY ARE THEY EVEN CALLED OUT AND THE PEOPLE MAKING FALSE REPORTS NEED TO GO TO JAIL AND HAVE A CLASS D FELONY ON THERE RECORD TO SEE HOW IT FEELS. I WENT THREW ALOT WHEN HE WAS TAKEN WHAT ELSE DOES THESE SCHOOL WANT ME TO SERVE 25 YEARS TO LIFE ON LIES THERE TELLING OR EVEN LE SAME THING LIED TO THE COUNTY PROSECUTOR JUST SO I WOULD GET ARRESTED AND GET TIME HE THOUGHT AND IT TURNED OUT I DID WHAT I HAD TO DO NOT PROUD OF WHAT HAPPEN AND SHOULD KNOW ABOUT SEEKING MEDICAL ATTENTION FOR MY CHILD I AM DISABLED AND SICK OF GETTING TREATED BADLY HOW WOULD THEY LIKE IT IF I CALLED APS ON THEM FOR A CHANGE THEN THEY CAN COME AND ARREST THEM RIGHT OUT OF THE SCHOOL. NOW WE ARE HOMELESS AND THE CHILDREN ARE STAYING WITH A RELATIVE AND GUARDIAN AND THE SCHOOL WON'T LET THEM GO TO SCHOOL THERE BUT WANT THEM TO GO TO SCHOOL WHERE BULLYING IS ALLOWED REAL SMART THINKING ON A SCHOOL STAFF.

ADVERTISEMENT