ILNews

Justices rule in favor of insurer in dispute over canceled policy

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Supreme Court affirmed summary judgment for American Family Insurance in a lawsuit filed by a couple after the insurer denied coverage for a 2003 fire at their home and voided the insurance policy from its beginning.

In Michael Dodd and Katherine Dodd v. American Family Mutual Insurance Company, 12S02-1203-CT-170, Michael and Katherine Dodd filed a claim with American Family after their garage was destroyed by a fire in 2003. Michael Dodd did not disclose in his application with American Family in 1998 that his then-fiancée Katherine’s home, where he lived, was destroyed in a fire earlier that year. Michael and Katherine Dodd didn’t marry until 2000, but they lived together when he applied for the policy.

In investigating the 2003 fire, Michael Dodd told American Family about the 1998 fire. The company treated it as a misrepresentation, voided the insurance policy ab initio and denied the Dodds' claim for the 2003 fire.

The couple sued for breach of contract and intentional infliction of emotional distress. The trial court ruled in favor of American Family. The Indiana Court of Appeals reversed in part and ordered more proceedings on the breach of contract claim.

The justices upheld the trial court’s grant of summary judgment to American Family, rejecting the Dodds’ argument that American Family couldn’t void or rescind the policy because it hadn’t first returned all paid premium amounts to them. They didn’t make that argument in response to the insurer’s motion for summary judgment and the issue wasn’t before the trial court, Chief Justice Brent Dickson wrote.

But even if the Dodds had made the argument before the lower court, an exception to this requirement has been met where an insurer doesn’t have to tender a return of premiums to rescind a contract when the insurer has paid a claim which is greater in amount than the premiums paid.

The Dodds received $5,500 from American family for hail damage, more than twice the amount of the premiums they paid.

The justices ordered the trial court to release and return the tender of premiums to American Family, which the trial court was holding until the conclusion of the Dodds’ appeal.

 

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
2015 Distinguished Barrister &
Up and Coming Lawyer Reception

Tuesday, May 5, 2015 • 4:30 - 7:00 pm
Learn More


ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. OK, now do something about this preverted anacronism

  2. William Hartley prosecutor of Wabash county constantly violates people rights. Withholds statement's, is bias towards certain people. His actions have ruined lives and families. In this county you question him or go out of town for a lawyer,he finds a way to make things worse for you. Unfair,biased and crooked.

  3. why is the State trying to play GOD? Automatic sealing of a record is immoral. People should have the right to decide how to handle a record. the state is playing GOD. I have searched for decades, then you want me to pay someone a huge price to contact my son. THIS is extortion and gestapo control. OPEN THE RECORDS NOW. OPEN THE RECORDS NOW. OPEN THE RECORDS NOW.

  4. I haven't made some of the best choices in the last two years I have been to marion county jail 1 and two on three different occasions each time of release dates I've spent 48 to 72 hours after date of release losing a job being denied my freedom after ordered please help

  5. Out here in Kansas, where I now work as a government attorney, we are nearing the end of a process that could have relevance in this matter: "Senate Bill 45 would allow any adult otherwise able to possess a handgun under state and federal laws to carry that gun concealed as a matter of course without a permit. This move, commonly called constitutional carry, would elevate the state to the same club that Vermont, Arizona, Alaska and Wyoming have joined in the past generation." More reading here: http://www.guns.com/2015/03/18/kansas-house-panel-goes-all-in-on-constitutional-carry-measure/ Time to man up, Hoosiers. (And I do not mean that in a sexist way.)

ADVERTISEMENT