ILNews

Seeking an exclusion for innocent co-insured

Back to TopCommentsE-mailPrintBookmark and Share

A LaPorte County woman who lost her home to a fire, allegedly started by her estranged husband, is at the center of a legal dispute with her insurance company that could set precedent in Indiana caselaw.

The case focuses on the issue of excluding so-called “innocent co-insureds” from coverage after intentional acts. Insurance companies have traditionally denied claims when a fire was set by only one party listed on the joint policy.

il-insurance03-15col.jpg Ice Miller LLP attorneys (from left) Elizabeth Timme, Sarah Murray and Angela Krahulik are working pro bono to help a LaPorte County woman left homeless by a house fire.(IL Photo/ Perry Reichanadter)

However, a trend has been emerging nationally, according to an article in Property Casualty 360. Increasingly, courts have been holding that the language of “any insured” or “an insured” included in many homeowners’ policies does not enable insurance providers to bar innocent co-insureds from coverage.

Arizona, California, Idaho, Massachusetts and Michigan are some of the states where courts have struck down the coverage denials, finding the intentional act exclusion was invalid.

Gwendolen Womack, a LaPorte County resident, was denied coverage under her policy’s intentional act exclusion clause. Although her husband, Robert, has been charged with setting the house on fire and remains in jail, Allstate Property & Casualty Insurance Co. did not honor her claim because the loss was caused by one of the insured individuals.

A trio of attorneys from Ice Miller LLP has taken Womack as a pro bono client. They counter that by having her claim refused, Womack, a survivor of domestic violence, is continuing to be victimized. They have filed a complaint in LaPorte Superior Court against Allstate, asking for unspecified declaratory relief, damages and costs arising from the house fire and denial of coverage.

Indiana courts have ruled for innocent co-insureds in past cases, namely American Economy Ins. Co. v. Liggett, 426 N.E.2d 136 (Ind. Ct. App. 1981), and Fuston v. National Mutual Ins. Co., 440 N.E.2d 751 (Ind. Ct. App. 1982). However, the state’s judiciary is believed to have never addressed separating co-insureds in cases of domestic violence.

“This is an opportunity to set a good precedent and to make some pretty good public policy,” said Kerry Hyatt Blomquist, legal director at the Indiana Coalition Against Domestic Violence.

Continued victimization

Womack lost her home and her belongings to a fire on May 31, 2012. If not for the advice of a police officer, she could have lost her life.

kerry blomquist Blomquist

Her marriage had endured instances of abuse, but in May 2012, after her husband became violent during an argument, Womack gathered her two children and left. She subsequently filed a protective order that required her husband to stay away from the residence and her place of employment.

A law enforcement official who escorted Womack to the house insisted she gather some essential items and stay elsewhere for her own protection. Womack spent the night at her parents’ house with the intention of returning to her own home after work the next day.

Hours after Womack settled at her parents, her husband called her father and said the house was on fire. By the time Womack was allowed to go to her house, her husband had been arrested and everything she and her children owned was gone.

“We have nothing,” Womack said. “We don’t have anything.”

In a letter dated Nov. 21, 2012, Allstate rejected Womack’s claim. The company stated the policy covering the home imposed joint obligations, which means the responsibilities, acts and failures to act of one insured person will be binding to the other insured person.

Allstate went on to explain that its own investigation had determined that Robert Womack had “both motive and opportunity to set the fire.” It also contended that both Gwen and Robert Womack had “made material misrepresentations regarding this claim.”

Therefore, based upon the policy’s language, the company stated it would not be providing coverage.

Blomquist noted denial of insurance claims from domestic violence victims not only continues the victimization of individuals who have already been abused but also bolsters the position of their abusers who are trying to either kill their victims, devastate them or cause them to be homeless.

womack-burnedhouse-15col.jpg The house was allegedly burned by the woman’s estranged husband. (Photo submitted)

In this case, Blomquist believes Womack has a right to at least half of the amount provided for in the homeowner’s policy.

Allstate declined to further discuss the basis for its decision since the matter is currently under litigation. However, in an email to Indiana Lawyer, the insurance company pointed to its support of domestic violence victims.

“We were very concerned to learn of the unfortunate and criminal circumstances surrounding Ms. Womack’s claim and are saddened by her personal situation,” the email stated, adding the company has invested more than $30 million in support of domestic violence victims. “Allstate understands the devastating impact that domestic violence can have on individuals and households. We are strongly committed to help reduce the incidence and impact of this terrible crime.”

Since the fire, Womack has no permanent place to live. She maintains with the insurance payment, she would be not only able to afford a residence, but also she could have kept her home out of foreclosure.

Now her family is separated, with her teenage daughters staying in two separate locations while she lives with a neighbor.

“It’s hard to say ‘good night’ over a text message,” Womack said.

Unique and special issue

Angela Krahulik, partner at Ice Miller, has handled insurance cases that involved denial of coverage because of an intentional act, but those have mostly been related to environmental contamination matters. Never has she seen a claim be denied where an allegation of domestic violence results in a criminal act.

The Womack case, Krahulik said, involves a unique and special issue. Namely, the victim of the abuse has to deal with the mess caused by the criminal act while the accused abuser is not penalized by the denial of coverage.

Krahulik, along with associate attorneys Elizabeth Timme and Sarah Murray, decided to take this case after hearing Blomquist talk about Womack’s situation during a luncheon for the Women and the Law Division of the Indianapolis Bar Association.

The complaint they filed has one count against Womack’s husband under the Indiana Crime Victims Relief Act. It also lists three counts against Allstate: breach of duties of good faith and fair dealing, breach of contract and declaratory relief.

Cases in other states challenging the intentional act exclusion as applied to domestic violence victims have been carried to the appellate level and, in California, all the way to the state’s Supreme Court.

Krahulik is not looking that far ahead. She hopes Allstate will rescind its denial and provide Womack with coverage.

Although this is the first case of insurance denial to a domestic violence victim to reach the Indiana courts, Blomquist suspects there have been others. But those victims did not have the luck in securing pro bono legal assistance.

Blomquist said she trusts the courts to understand the equity issue in the Womack case. And, noting the national trend, she has faith in the court system.

“I’m cautiously optimistic,” she said. “I’m just glad we can at least make the argument.”

At this point, with the complaint filed and Ice Miller attorneys on her case, Womack described herself as “scared.”

“I feel like if they can’t help me, then I’m done,” she said.•

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
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. "...not those committed in the heat of an argument." If I ever see a man physically abusing a woman or a child and I'm close enough to intercede I will not ask him why he is abusing her/him. I will give him a split second to cease his attack and put his hands in the air while I call the police. If he continues, I will still call the police but to report, "Man down with a gunshot wound,"instead.

  2. And so the therapeutic state is weaonized. How soon until those with ideologies opposing the elite are disarmed in the name of mental health? If it can start anywhere it can start in the hoosiers' slavishly politically correct capital city.

  3. So this firebrand GOP Gov was set free by a "unanimous Supreme Court" , a court which is divided, even bitterly, on every culture war issue. WHAT A RESOUNDING SLAP in the Virginia Court's face! How bad must it have been. And all the journalists, lap dogs of the status quo they are, can do is howl that others cannot be railroaded like McDonald now??? Cannot reflect upon the ruining of Winston and Julia's life and love? (Oh I forget, the fiction at this Ministry of Truth is that courts can never err, and when they do, and do greatly, as here, why then it must be ignored, since it does not compute.)

  4. My daughter is a addict and my grandson was taken by DCS and while in hospital for overdose my daughter was told to sign papers from DCS giving up her parental rights of my grandson to the biological father's mom and step-dad. These people are not the best to care for him and I was never called or even given the chance to take him, but my daughter had given me guardianship but we never went to court to finalize the papers. Please I have lost my daughter and I dont want to lose my grandson as well. I hope and look forward to speaking with you God Bless and Thank You for all of your help

  5. To Bob- Goooooood, I'm glad you feel that way! He's alive and happy and thriving and out and I'm his woman and we live in West Palm Beach Florida, where his parents have a sprawling estate on an exclusive golf course......scum bag

ADVERTISEMENT