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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. Hi there I really need help with getting my old divorce case back into court - I am still paying support on a 24 year old who has not been in school since age 16 - now living independent. My visitation with my 14 year old has never been modified; however, when convenient for her I can have him... I am paying past balance from over due support, yet earn several thousand dollars less. I would contact my original attorney but he basically molest me multiple times in Indy when I would visit.. Todd Woodmansee - I had just came out and had know idea what to do... I have heard he no longer practices. Please help1

  2. Yes diversity is so very important. With justice Rucker off ... the court is too white. Still too male. No Hispanic justice. No LGBT justice. And there are other checkboxes missing as well. This will not do. I say hold the seat until a physically handicapped Black Lesbian of Hispanic heritage and eastern religious creed with bipolar issues can be located. Perhaps an international search, with a preference for third world candidates, is indicated. A non English speaker would surely increase our diversity quotient!!!

  3. First, I want to thank Justice Rucker for his many years of public service, not just at the appellate court level for over 25 years, but also when he served the people of Lake County as a Deputy Prosecutor, City Attorney for Gary, IN, and in private practice in a smaller, highly diverse community with a history of serious economic challenges, ethnic tensions, and recently publicized but apparently long-standing environmental health risks to some of its poorest residents. Congratulations for having the dedication & courage to practice law in areas many in our state might have considered too dangerous or too poor at different points in time. It was also courageous to step into a prominent and highly visible position of public service & respect in the early 1990's, remaining in a position that left you open to state-wide public scrutiny (without any glitches) for over 25 years. Yes, Hoosiers of all backgrounds can take pride in your many years of public service. But people of color who watched your ascent to the highest levels of state government no doubt felt even more as you transcended some real & perhaps some perceived social, economic, academic and professional barriers. You were living proof that, with hard work, dedication & a spirit of public service, a person who shared their same skin tone or came from the same county they grew up in could achieve great success. At the same time, perhaps unknowingly, you helped fellow members of the judiciary, court staff, litigants and the public better understand that differences that are only skin-deep neither define nor limit a person's character, abilities or prospects in life. You also helped others appreciate that people of different races & backgrounds can live and work together peacefully & productively for the greater good of all. Those are truths that didn't have to be written down in court opinions. Anyone paying attention could see that truth lived out every day you devoted to public service. I believe you have been a "trailblazer" in Indiana's legal community and its judiciary. I also embrace your belief that society's needs can be better served when people in positions of governmental power reflect the many complexions of the population that they serve. Whether through greater understanding across the existing racial spectrum or through the removal of some real and some perceived color-based, hope-crushing barriers to life opportunities & success, movement toward a more reflective representation of the population being governed will lead to greater and uninterrupted respect for laws designed to protect all peoples' rights to life, liberty & the pursuit of happiness. Thanks again for a job well-done & for the inevitable positive impact your service has had - and will continue to have - on countless Hoosiers of all backgrounds & colors.

  4. Diversity is important, but with some limitations. For instance, diversity of experience is a great thing that can be very helpful in certain jobs or roles. Diversity of skin color is never important, ever, under any circumstance. To think that skin color changes one single thing about a person is patently racist and offensive. Likewise, diversity of values is useless. Some values are better than others. In the case of a supreme court justice, I actually think diversity is unimportant. The justices are not to impose their own beliefs on rulings, but need to apply the law to the facts in an objective manner.

  5. Have been seeing this wonderful physician for a few years and was one of his patients who told him about what we were being told at CVS. Multiple ones. This was a witch hunt and they shold be ashamed of how patients were treated. Most of all, CVS should be ashamed for what they put this physician through. So thankful he fought back. His office is no "pill mill'. He does drug testing multiple times a year and sees patients a minimum of four times a year.

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