ILNews

Insurer failed to prove driver violated policy clause

Back to TopCommentsE-mailPrintBookmark and Share

Because a drug test failed to show conclusively when a driver last used marijuana before a fatal crash, an insurer cannot deny payment based on an exclusionary clause in the policy, the Court of Appeals determined.

In Shawn A. Keckler, Kari Felda, Special Admin. to the Estate of Ryan S. Holloway, Janice Norman, Dewayne Scott, Timothy J. Boganwright, et al. v. Meridian Security Insurance Company, No. 43A03-1112-PL-551, a grant of summary judgment in favor of Meridian Security Insurance Company on its declaratory judgment action was appealed.

In 2008, Nathan Creighton was driving, with passengers Shawn Keckler, Bryant Scott and Ryan Holloway as passengers. Creighton attempted to pass a car that stopped in his lane and crashed head-on into a truck driven by Timothy Boganwright. Scott and Holloway were pronounced dead at the scene; Creighton and Keckler sustained brain injuries and have no memory of the crash. Boganwright also was injured.

Police investigating the crash scene discovered that Holloway was in possession of several bags of marijuana and that Creighton was in possession of one bag of marijuana. Police also stated in a crash report that Creighton “also had glassy eyes and appeared very disorderly,” although Creighton was unconscious when police arrived on the scene.

At the time, Creighton’s primary insurer, through his father, was Progressive, with a global policy limit of $500,000. Creighton also was insured under his father’s umbrella policy with Meridian, with a coverage limit of $1 million.

Keckler filed a motion for summary judgment against Meridian, and the other plaintiffs joined in. But Meridian claimed that the crash was not covered, due to an exclusionary clause in the policy that precludes payments for injuries that arise out of the use, sale, manufacture, delivery, transfer or possession of drugs. In support of that claim, Meridian submitted testimony from a toxicologist, but the toxicologist could not determine from a post-crash blood draw when Creighton might have last used marijuana before the crash.

The Court of Appeals concluded that Meridian did not meet its burden on summary judgment of establishing that the exclusionary clause for injuries arising out of the use of marijuana applied in this case. It held that denying insurance coverage would have drastic consequences not only for Creighton, but also for injured parties seeking recompense for the injuries he caused. The COA reversed summary judgment in favor of Meridian and remanded for further proceedings.


 

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. "Am I bugging you? I don't mean to bug ya." If what I wrote below is too much social philosophy for Indiana attorneys, just take ten this vacay to watch The Lego Movie with kiddies and sing along where appropriate: https://www.youtube.com/watch?v=etzMjoH0rJw

  2. I've got some free speech to share here about who is at work via the cat's paw of the ACLU stamping out Christian observances.... 2 Thessalonians chap 2: "And we also thank God continually because, when you received the word of God, which you heard from us, you accepted it not as a human word, but as it actually is, the word of God, which is indeed at work in you who believe. For you, brothers and sisters, became imitators of God’s churches in Judea, which are in Christ Jesus: You suffered from your own people the same things those churches suffered from the Jews who killed the Lord Jesus and the prophets and also drove us out. They displease God and are hostile to everyone in their effort to keep us from speaking to the Gentiles so that they may be saved. In this way they always heap up their sins to the limit. The wrath of God has come upon them at last."

  3. Did someone not tell people who have access to the Chevy Volts that it has a gas engine and will run just like a normal car? The batteries give the Volt approximately a 40 mile range, but after that the gas engine will propel the vehicle either directly through the transmission like any other car, or gas engine recharges the batteries depending on the conditions.

  4. Catholic, Lutheran, even the Baptists nuzzling the wolf! http://www.judicialwatch.org/press-room/press-releases/judicial-watch-documents-reveal-obama-hhs-paid-baptist-children-family-services-182129786-four-months-housing-illegal-alien-children/ YET where is the Progressivist outcry? Silent. I wonder why?

  5. Thank you, Honorable Ladies, and thank you, TIL, for this interesting interview. The most interesting question was the last one, which drew the least response. Could it be that NFP stamps are a threat to the very foundation of our common law American legal tradition, a throwback to the continental system that facilitated differing standards of justice? A throwback to Star Chamber’s protection of the landed gentry? If TIL ever again interviews this same panel, I would recommend inviting one known for voicing socio-legal dissent for the masses, maybe Welch, maybe Ogden, maybe our own John Smith? As demographics shift and our social cohesion precipitously drops, a consistent judicial core will become more and more important so that Justice and Equal Protection and Due Process are yet guiding stars. If those stars fall from our collective social horizon (and can they be seen even now through the haze of NFP opinions?) then what glue other than more NFP decisions and TRO’s and executive orders -- all backed by more and more lethally armed praetorians – will prop up our government institutions? And if and when we do arrive at such an end … will any then dare call that tyranny? Or will the cost of such dissent be too high to justify?

ADVERTISEMENT