 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
KIBBEE v. STATE FARM FIRE AND CAS. CO.12/21/1994
In this case we decide whether a liability policy affords coverage for damages recovered under a theory of intentional infliction of emotional distress. We conclude, as did the district court, that it does not. Therefore, we affirm.
I. Background Facts and Proceedings.
In a prior lawsuit plaintiff, Rick Kibbee, recovered substantial damages from Ellen and Albert Cram. The jury awarded these damages under theories of fraudulent misrepresentation and intentional infliction of emotional distress.
At the time of the tortious acts giving rise to the Crams' liability, they were insured under consecutive insurance policies issued to them by the defendant, State Farm Fire and Casualty Company. State Farm denied that it had coverage under the policies for Kibbee's judgment against the Crams and refused to pay the judgment.
The Crams and Kibbee then agreed to a settlement. In return for a full release and a satisfaction of the judgment, the Crams paid Kibbee $100,000 and assigned their rights against State Farm to Kibbee. Kibbee filed this action against State Farm claiming that State Farm was contractually obligated to pay the judgment under its insurance contract with the Crams.
The case was submitted to the court on a stipulation of facts. The district court held that there was no coverage. Kibbee appealed.
II. The Relevant Policy Language.
State Farm insured the Crams under two personal liability umbrella policies which were identical in their terms. The insuring agreement of the policies provided that State Farm would pay "damages for a loss" that the Crams became legally obligated to pay. The policy defined "loss" as "an accident that results in personal injury . . . ."
"Personal injury" was defined in the policy as
a. bodily harm, sickness, disease, shock, mental anguish or mental injury. This includes required care, loss of services and death resulting therefrom . . .;
b. false arrest, false imprisonment, wrongful eviction, wrongful detention, malicious prosecution and humiliation;
c. libel, slander, defamation of character or invasion of rights of privacy; and
d. assault and battery.
(Emphasis added.) The policy also contained an intentional act exclusion for "personal injury": [525 NW2d Page 868]
a. which is either expected or intended by the insured; or
b. to any person . . . which is the result of [the insured's] willful and malicious act, no matter at whom the act was directed.
Kibbee does not contend that the policies cover the damages awarded for fraudulent misrepresentation. However, he does claim coverage for that part of the judgment based on intentional infliction of emotional distress. He first asserts that the tort of intentional infliction of emotional distress is included in the personal injury definition under the label "malicious . . . humiliation." His second contention is that the intentional act exclusion is inconsistent with the policy's express coverage of the intentional tort of intentional infliction of emotional distress. Therefore, he argues, the policy is ambiguous and the exclusion is unenforceable. State Farm disputes both contentions.
To determine whether coverage exists for Kibbee's judgment, we must first decide whether Kibbee's judgment is based on a personal injury as that term is defined in the policy. If it is not, he concedes there is no coverage under the policy. If it is, we must then examine whether the intentional act exclusion negates coverage.
III. Did Kibbee Sustain a Personal Injury ?
The policy defines the
Page 1 2 3 Iowa Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|