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Seeking an exclusion for innocent co-insured

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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.•

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  1. Am I the only one who sees that the City is essentially giving away the MSA site AND giving millions to build new buildings on the site when this site would be the perfect place for the Justice Complex? Across from City-County, check; keeping it centrally located, check, etc. It's my understanding that the GM site must be purchased by the City from Motors Liquidation Company. STOP WASTING WHAT WE ALREADY HAVE AND OUR TAX DOLLARS! The Ballard Administration has not been known for it's common sense...never voted for him and never will!

  2. This guy sounds like the classic molester/manipulator.

  3. Louis D. Brandeis was born in 1856. At 9 years of age it would have been 1865. The Brandeis family did not own slaves. My source Louis D. Brandeis: A Life, by Melvin L. Urofsky.

  4. My name is Matthew Lucas Major, I recently went through a jury trial in Bloomington , In. It was the week of Feb 19-21. Although I have been incarcerated since August 5, 2014. The reason I 'am writing to you sir is on the 21 of February the jury came in with a very excessive and wrongful verdict of guilty on 6 child molesting charges against my daughter who was 9 at the time I was accused. I also had 2 other Felonies one of Intimidation and 1 of Sexual Vicarious Gratification. Judge Marc Kellam on the second day of trial gave me a not guilty on those 2 felonies. The jury was sent out during that time and when brought back Judge Kellam told them to not concern themselves with the 2 Felonies that he ruled on them. They were told to not let evidence they had already heard influence there verdicts. I never in my life touched any child sexually and definitely not with my own daughter. When I was arrested Detective Shawn Karr told me I would be convicted guilty just on my daughters word even without evidence. That's just what happened. my public defender did me so wrong he never once proved to the court and jury all the lies the child told, and Jeremy Noel my public defender could of proven the lies easily. The stories in Serenity's depositions and Forensic interview changed and were not consistent as Prosecutor Darcie Fawcett claimed they were. Yet my attorney never mentioned that. The facts that the child accused me of full penetration in her vagina and rectum was proven lies. Doctor Roberta Hibbard of Riley hospital in Indianapolis confirmed Serenity's hymen intact, no scars, no tearing, no signs of rape to her. Yet my attorney didn't use that knowledge . the DNA was all in my favor. I tell you I will spend my entire life in prison going through rape and beatings etc. even Judge Kellam abused his authority by telling the jurors to listen and believe what the prosecutors side in evidence like my daughters testimony. In one interview with the detectives my daughter got flustered with her mom and said on camera " I'm saying what you told me to mom"!! Yet Mr. Noel said nor did anything to even resemble a defense attorney. Judge Kellam allowed edited version of a taped conversation between the child and her mother. Also Judge Kellam allowed the Prosecutor too bring in to my case a knife found under my seat, the knife wasn't part of my case. She was allowed by my attorney and the judge to put a huge picture of it on the screen and huge picture of my naked privates in a full courtroom and open court. Ms. Fawcett says to jury see how easy Mr. Major could reach the knife and cut his Childs throat. Even though I had no weapons charge against these cases. This gave the jurors prejudice thought against me thinking I threatened her with that knife and how scared she would of been knowing i could get it and kill her. On my sentencing court March 19, 2014 my public defender told Judge Kellam he wish to resign from being my attorney and wished for the court to give me outside council to file a error to trial or appeal. We were denied. Now after openly knowing my public defender don't want to represent me he has to. Well when as parents we make our kids clean a room when they really don't wish to, well the child will but don't mean she will do a good job, that's where I'm at with Mr. Noel. please dont ignore mine and my families pleas for your help . we have all the legal proof you could need to prove Im innocent. Please dont make my spend years in prison innocent when you can fix this wrong. Im not saying Im a perfect man or that I was a perfect dad to my 2 children none of us are. Ive made some bad choices in life and I paid for them. But I didnt ever touch or rape my daughter . I love my children with all my heart. And now through needing attention and a ex-wife who told my granny several times she wish she could put me in prison to get me out of their lives. Well my ex finally accomplished her goal. Sad part is she is destroying our daughter with all this horrific lies and things she taught my daughter to say. My daughter will need therapist to ever hope for a chance of a normal life after what she had done to her by her mom and their side of the family. My daughter told everyone even on stand she had a dream months before i supposedly molested her in this dream I was molesting her and when I finally did it matched her dream perfectly. She admitted to watching movies about little girls being molested and watching U-Tube videos about child molesting all before it happened supposedly to her. Doesn't that sound very unusual that a non molested 9 yr old would need to know so much about being molested? The only reason I could think a 9 year old would need so much information is to be prepared to know what to say and be able to say how it felt what took place etc.. So when questioned by authorities she would be prepared. And there again sir if a parent is pre grooming a 9 year old child she would need intimate details . Like telling her daughter about a couple moles on my private area. The child admitted to sneaking my cell and looking many many times at nudes of me and my girlfriend even one where my penis was entering my girlfriends vagina. In that picture my moles are obvious. Yet when prosecutor showed everyone in court my privates and pictures of the moles she said the only way the child would know about them is if she saw them for herself. My attorney once again said nothing about the pictures my child saw. Or could a ex-wife be able to describe my moles to help her case against getting rid of me? I beg you help me. This is my very existence. Ive lost everything , a good job, a wonderful girlfriend, my freedom, but worse thing Ive lost is my children. They were my reason to get up every morning and strive to be better. The wonderful bond I had with my Serenity is gone. After this I would be afraid to even hug her for fear of what next can they do to me. I'm not afraid to tell you I sit here in this cell and try to hold back my tears. Everyone knows you cant show weakness in prison. My life has already been threatened here at Wabash Valley Prison. After only 3 days of arrival. I was tricked into signing a waiver now Im in G Block General Population with 6 child molesting felony charges. Mrs. Hart as a 18 year old I almost died hooked to machines in hospital almost 1 month and now I know that fear was childish compared to this . I cant help but put emotions in this, after all Mrs. Hart Im human and God help Me I never been more afraid in my life. I didnt hurt my little girl I didnt touch her sexually. As much as it shreds me and fills my mind what Im facing I worry more about my mom and granny because of their great love for me mam they are suffering so deeply. I aint done this things but my loved ones suffering right along beside me and If you take my case you will be in essence freeing them also. I sent momma this letter and asked her to email it to you. I'm scared I have been done so unjustly by our legal system and I need you to fix this and give me freedom. I ask you please don't just ignore my pleas. Here in America its nice to be able to trust our legal justice system, well they destroyed my and my loved ones trust in our justice system . And I'm trusting in You !!! My entire family is suffering this nightmare with me. My 77 year old granny had a stroke and isn't doing so well. My single mother that raised 3 kids alone is dying from Lupus and since my arrest has stayed so sick and weary. Our lives torn to peices by a government I was taught I could trust in. my momma has tried so many innocent project and wrongfully accused and cant get anywhere. please please help me. A quote from the late Nelson Mandela: To be free is not merely to cast off ones chains, But to live in a way that respects and enhances The Freedom Of Others. I have Faith in you and your clinic to cast my chains off and give me freedom I do deserve as a wrongfully accused Man, son, brother, father, friend. Matthew Major DOC# 246179 Cause # : 53c02-1308-FA-000779 God Bless you. Please contact me with your decision so I know you made a life changing decision for me , just please at least write me so I know you care enough about your citizens to respond to cries for your help. You can speak openly with my mother Charlotte Spain (828) 476-0406: 71 Lakeview Dr. Canton, NC 28716 Thank You Matthew Major I know yall get thousands of request and inmates claiming innocence, and each person who are innocent deserve to have organizations like yours willing to fight for them and I give yall so much Thanks and I thank God everyday yall are out there caring enough to help free the innocents. Since discovering firsthand how easily lives and families can be destroyed by Poor Defense attorneys not doing their job . And Prosecutors allowed to do as they please in court

  5. Frankly, it is tragic that you are even considering going to an expensive, unaccredited "law school." It is extremely difficult to get a job with a degree from a real school. If you are going to make the investment of time, money, and tears into law school, it should not be to a place that won't actually enable you to practice law when you graduate.

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