Casco Indem. Co. v. Rhode Island Interlocal Risk Management Trust, 96-1820

• Decision Date: 09 January 1997
• Docket Number: No. 96-1820,96-1820
• Citation: 113 F.3d 2
• Parties: CASCO INDEMNITY CO., Plaintiff, Appellant, v. RHODE ISLAND INTERLOCAL RISK MANAGEMENT TRUST, Defendants, Appellees. . Heard
• Court: U.S. Court of Appeals — First Circuit

Page 2

113 F.3d 2

CASCO INDEMNITY CO., Plaintiff, Appellant, v. RHODE ISLAND INTERLOCAL RISK MANAGEMENT TRUST, Defendants, Appellees.

No. 96-1820.

United States Court of Appeals First Circuit.

Heard Jan. 9, 1997.

Decided May 12, 1997.

Alice Olsen Mann with whom David E. Maglio, Providence, RI, and Morrison, Mahoney & Miller were on brief, for appellant.

Rosemary Healey, Providence, RI, with whom James M. Green, Andrew M. Elmore and Powers, Kinder & Keeney, Inc. were on brief for appellee, Rhode Island Interlocal Risk Management Trust.

Before CYR, Circuit Judge, CAMPBELL, Senior Circuit Judge, and STAHL, Circuit Judge.

LEVIN H. CAMPBELL, Senior Circuit Judge.

This case primarily concerns a dispute between two insurance companies, Casco Indemnity Company ("Casco") and Rhode Island Interlocal Risk Management Trust ("the Trust"), over which of them is responsible for compensating one Victor Cipriano for the injuries he sustained in an automobile accident with an uninsured driver. Because we agree with the district court that Exclusion 9 in the Trust's policy applies to uninsured motorist insurance and is not contrary to public policy, see Casco Indem. Co. v. Rhode Island Interlocal Risk Mgt. Trust, 929 F.Supp. 65 (D.R.I.1996), we affirm on these questions without further comment. See In re San Juan Dupont Plaza Hotel Fire Litig., 989 F.2d 36, 38 (1st Cir.1993) ("Where, as here, a trial court has produced a first-rate work product, a reviewing tribunal should hesitate to wax longiloquence [sic] simply to hear its own words resonate.").

We find it was error, however, for the district court not to issue a declaratory judgment, as Casco requested, concerning Casco's ability to deduct any workers' compensation benefits received by Cipriano already or in the future from his damages. ¹

Casco contended below, and now contends on appeal, that such benefits are excluded by a provision in its policy stating:

B. Any amounts otherwise payable for damages under this coverage shall be reduced by all sums ...

2. Paid or payable because of the "bodily injury" under any of the following or similar law:

a. workers' compensation law; or

b. disability benefits law.

Casco asserts that this provision comports with Rhode Island's public policy against double recovery, citing Poulos v. Aetna Cas. & Sur. Co., 119 R.I. 409, 379 A.2d 362, 365 (1977) (upholding an insurance policy clause reducing the insurer's liability by the amount paid or payable "under any workmen's compensation law, disability benefits law or any similar law" only to the extent such benefits represented a double recovery--thus mandating that the deduction be from the insured's total damages, not the policy's face value).

Casco included this claim in its amended complaint, in its motion for summary judgment below, and in its appeal brief. The Trust, having no stake in this debate, has provided no response. Cipriano, the beneficiary of Casco's policy, was a named defendant in this suit and filed a general answer to Casco's complaint, but insofar as appears he did not file an opposition to Casco's motion for summary judgment (which sought relief on the point) nor did he otherwise take part in the proceeding below. Cipriano has...