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. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  2. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

  3. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.

  4. While if true this auto dealer should be held liable, where was the BMV in all of this? How is it that the dealer was able to get "clean" titles to these vehicles in order to sell them to unsuspecting consumers?

  5. He has refused his Assent to Laws, the most wholesome and necessary for the public good. He has forbidden his Governors to pass Laws of immediate and pressing importance, He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance. He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation: For imposing Taxes on us without our Consent: He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.. He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless [ ] Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions. GOD BLESS THE GOVERNORS RESISTING! Count on the gutless judiciary to tie our children down and facilitate the swords being drawn across their throats. Wake Up America ...