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Insurance dispute divides Court of Appeals

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A split Indiana Court of Appeals reversed a trial court’s finding that a landlord was not covered by the tenant’s insurance policy.

After pipes in a warehouse sprinkler system burst, the tenant’s insurance company, Erie Insurance Exchange filed a subrogation lawsuit against the building’s owner Rangeline LLC.

The trial court concluded Erie did not owe Rangeline a defense or indemnity in the underlying litigation.

On appeal, Rangeline argued that the additional insured endorsement in the policy provided coverage. Moreover, Rangeline asserted the A/I Endorsement language did not restrict coverage to only claims for which the landlord would have liability due to the actions of the tenant but instead extended a broader grant of coverage for any liability arising out of the leased premises.

Erie countered no coverage existed under the A/I Endorsement because the sprinkler system was not part of the premises leased to the tenant. Erie cited the Indiana Administrative Code in claiming that Rangeline retained control of the sprinkler system.

Pointing to its decision in Liberty Mut. Ins. Co. v. Mich. Mut. Ins. Co., 891 N.E.2d 99 (Ind. Ct. App. 2008), the Court of Appeals found a significant connection between the accident and the leased premises.

The Court of Appeals reversed and remanded in Selective Insurance Company of South Carolina and 500 Rangeline Road, LLC v. Erie Insurace Exchange, Welch & Wilson Properties, LLC d/b/a Hammons Storage, Allianz Global Risks U.S. Insurance Company, 73A01-1307-PL-311.

Judge Margret Robb dissented, agreeing with the trial court that the A/I Endorsement of the policy does not provide coverage for Rangeline in the underlying litigation.

 

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  1. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

  2. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

  3. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

  4. Justice has finally been served. So glad that Dr. Ley can finally sleep peacefully at night knowing the truth has finally come to the surface.

  5. While this right is guaranteed by our Constitution, it has in recent years been hampered by insurance companies, i.e.; the practice of the plaintiff's own insurance company intervening in an action and filing a lien against any proceeds paid to their insured. In essence, causing an additional financial hurdle for a plaintiff to overcome at trial in terms of overall award. In a very real sense an injured party in exercise of their right to trial by jury may be the only party in a cause that would end up with zero compensation.

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