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Judges disagree on estoppel claim

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An Indiana Court of Appeals panel disagreed today as to whether an insurance company is entitled to summary judgment in an action filed by clients regarding coverage.

In Everett Cash Mutual Insurance Co. v. Rick and Katrina Taylor, No. 02A03-0808-CV-386, the issue is whether the Taylors were negligent in failing to make sure an independent contractor had worker's compensation insurance because the Taylors believed their farm personal liability policy from Everett would cover all risks occurring on their property.

The Taylors told their insurance agent Jake Owens they wanted "all risk" coverage, but the policy contained exclusions that included no coverage if an injury would be covered by a worker's compensation claim.

Shortly after obtaining the policy, a worker for Sherlock, an independent contractor hired by the Taylors, was injured while painting the grain bin. The Taylors didn't verify if the company had worker's compensation insurance before hiring them and assumed any risk was covered by their policy. When the employee Christopher Collis filed a complaint against the company, he added the Taylors as a party for failing to verify whether Sherlock had worker's compensation coverage. After the injury, Owens told the Taylors their policy would cover Collis' injuries, but Everett denied coverage.

The Taylors filed suit against Everett, Owens and two other insurance agencies seeking recovery against Everett for breach of contract and estoppel. The trial court denied Everett's summary judgment motion.

The judges examined a "somewhat obscure" worker's compensation provision, Indiana Code Section 22-3-2-14, which says a third party that contracts with an injured worker's employer is subject to liability for worker's compensation benefits to the same extent as the employer if the third party didn't comply with the Worker's Compensation Act. This statute is applicable in the instant case, so the Taylors are potentially liable for payment of worker's compensation benefits to Collis just as if they directly employed him, wrote Judge Michael Barnes for the majority. The Taylors should have ensured Sherlock had the coverage because their policy from Everett doesn't provide coverage for a claim made under the statute.

The majority also found Everett wasn't estopped from denying coverage for Collis' claim because there wasn't any designated evidence to show the Taylors thought they were receiving coverage for the precise situation that happened in this case, and in the absence of evidence they were led to believe at the time they originally bought the policy that it would provide coverage for this specific situation, there can't be estoppel, wrote Judge Barnes. The majority reversed the denial of Everett's motion for summary judgment.

Judge L. Mark Bailey dissented believing there was genuine issue of material fact regarding the estoppel claim. There is a question of fact whether the policy was represented to be the "all risk" coverage that included the Taylors' negligent omission for which they believed they are insured, the judge wrote. Judge Bailey believed the Taylors are entitled to their day in court and would affirm the denial of Everett's motion for summary judgment.

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  1. On a related note, I offered the ICLU my cases against the BLE repeatedly, and sought their amici aid repeatedly as well. Crickets. Usually not even a response. I am guessing they do not do allegations of anti-Christian bias? No matter how glaring? I have posted on other links the amicus brief that did get filed (search this ezine, e.g., Kansas attorney), read the Thomas More Society brief to note what the ACLU ran from like vampires from garlic. An Examiner pledged to advance diversity and inclusion came right out on the record and demanded that I choose Man's law or God's law. I wonder, had I been asked to swear off Allah ... what result then, ICLU? Had I been found of bad character and fitness for advocating sexual deviance, what result then ICLU? Had I been lifetime banned for posting left of center statements denigrating the US Constitution, what result ICLU? Hey, we all know don't we? Rather Biased.

  2. It was mentioned in the article that there have been numerous CLE events to train attorneys on e-filing. I would like someone to provide a list of those events, because I have not seen any such events in east central Indiana, and since Hamilton County is one of the counties where e-filing is mandatory, one would expect some instruction in this area. Come on, people, give some instruction, not just applause!

  3. This law is troubling in two respects: First, why wasn't the law reviewed "with the intention of getting all the facts surrounding the legislation and its actual impact on the marketplace" BEFORE it was passed and signed? Seems a bit backwards to me (even acknowledging that this is the Indiana state legislature we're talking about. Second, what is it with the laws in this state that seem to create artificial monopolies in various industries? Besides this one, the other law that comes to mind is the legislation that governed the granting of licenses to firms that wanted to set up craft distilleries. The licensing was limited to only those entities that were already in the craft beer brewing business. Republicans in this state talk a big game when it comes to being "business friendly". They're friendly alright . . . to certain businesses.

  4. Gretchen, Asia, Roberto, Tonia, Shannon, Cheri, Nicholas, Sondra, Carey, Laura ... my heart breaks for you, reaching out in a forum in which you are ignored by a professional suffering through both compassion fatigue and the love of filthy lucre. Most if not all of you seek a warm blooded Hoosier attorney unafraid to take on the government and plead that government officials have acted unconstitutionally to try to save a family and/or rescue children in need and/or press individual rights against the Leviathan state. I know an attorney from Kansas who has taken such cases across the country, arguing before half of the federal courts of appeal and presenting cases to the US S.Ct. numerous times seeking cert. Unfortunately, due to his zeal for the constitutional rights of peasants and willingness to confront powerful government bureaucrats seemingly violating the same ... he was denied character and fitness certification to join the Indiana bar, even after he was cleared to sit for, and passed, both the bar exam and ethics exam. And was even admitted to the Indiana federal bar! NOW KNOW THIS .... you will face headwinds and difficulties in locating a zealously motivated Hoosier attorney to face off against powerful government agents who violate the constitution, for those who do so tend to end up as marginalized as Paul Odgen, who was driven from the profession. So beware, many are mere expensive lapdogs, the kind of breed who will gladly take a large retainer, but then fail to press against the status quo and powers that be when told to heel to. It is a common belief among some in Indiana that those attorneys who truly fight the power and rigorously confront corruption often end up, actually or metaphorically, in real life or at least as to their careers, as dead as the late, great Gary Welch. All of that said, I wish you the very best in finding a Hoosier attorney with a fighting spirit to press your rights as far as you can, for you do have rights against government actors, no matter what said actors may tell you otherwise. Attorneys outside the elitist camp are often better fighters that those owing the powers that be for their salaries, corner offices and end of year bonuses. So do not be afraid to retain a green horn or unconnected lawyer, many of them are fine men and woman who are yet untainted by the "unique" Hoosier system.

  5. I am not the John below. He is a journalist and talk show host who knows me through my years working in Kansas government. I did no ask John to post the note below ...

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