Cincinnati Ins. Co. v. West American Ins. Co.
| Decision Date | 12 September 2000 |
| Docket Number | No. 99-CV-2073.,99-CV-2073. |
| Parties | The CINCINNATI INSURANCE COMPANY, Plaintiff, v. WEST AMERICAN INSURANCE COMPANY, The United States of America, Steven D. Campbell, Amy L. Campbell-Lukens, Danielle Jourdan Griffet, a Minor, by her Mother and Next Friend, Amy L. Campbell-Lukens, and the United States Postal Service, Defendants. |
| Court | U.S. District Court — Central District of Illinois |
Stephen L. Corn, Craig & Craig, Mattoon, IL, for plaintiff.
David H. Hoff, Office of U.S. Attorney, Urbana, IL, for Defendant USA and U.S. Postal Service.
Robert A Chemers, Patrick G. Cooke, Pretzel & Stouffer, Chicago, IL, for all other defendants.
This case is before the court for ruling on various Motions filed by the parties. Following careful consideration of all of the arguments of the parties, this court rules as follows: (1) Plaintiff's Motion to Amend First Amended Complaint (# 38) is GRANTED; (2) Plaintiff's Motion for Leave to File Answer to Counterclaim (# 39) is GRANTED; (3) the Motion for Summary Judgment (# 34) filed by Defendants, West American Insurance Company, Steven D. Campbell, Amy L. Campbell-Lukens, and Danielle Jourdan Griffet, is GRANTED; (4) Plaintiff's Motion for Summary Judgment (# 40) is DENIED; and (5) the United States' Motion for Summary Judgment (# 42) is GRANTED.
On February 6, 1999, James Hooten was employed as a rural mail carrier for the United States Postal Service in Gays, Illinois. As a rural mail carrier, Hooten received a salary for his employment with the United States Postal Service based upon (1) the round trip mileage of the rural mail route assigned to him and (2) the number of delivery points assigned to that route. A delivery point consists of a rural mail box on the route. Hooten receives the same compensation as an employee of the United States Postal Service whether or not he picks up or delivers mail to each rural mail box on any given day.
On Saturday, February 6, 1999, Hooten was involved in a two vehicle collision at the intersection of Illinois Route 16 and the Moultrie County/Coles County Line Road, in Moultrie County, Illinois. Hooten was driving his privately owned and privately insured vehicle in the course of his employment as a rural mail carrier. Hooten had a liability policy for that vehicle issued by Plaintiff, Cincinnati Insurance Company. The other vehicle involved in the collision was owned by Steven D. Campbell and was driven by Amy L. Campbell-Lukens. Campbell-Lukens' minor daughter, Danielle Jourdan Griffet, was a passenger in the vehicle. This vehicle was insured by West American Insurance Company.
On June 24, 1999, Plaintiff filed its First Amended Complaint (# 15). Plaintiff named as Defendants: Hooten; West American Insurance Company; Campbell; Lukens-Campbell; Griffet; the United States of America; and the United States Postal Service. The United States was later substituted for Hooten, and Hooten was dismissed as a party to this case. In its First Amended Complaint, Plaintiff alleged that Lukens-Campbell and Griffet claimed personal injuries from the February 6, 1999, collision. Plaintiff alleged that a claim had been asserted against it to pay damages allegedly incurred in the collision, which claim was denied. Plaintiff alleged that, under the terms of the policy it issued to Hooten, coverage was excluded for any injuries arising out of the collision. Plaintiff sought a declaratory judgment that: (1) its policy provides no coverage for any bodily injury or property claim arising out of the motor vehicle accident which occurred on February 6, 1999; (2) it has no duty to defend Hooten, the United States of America, or the United States Postal Service in any suit filed against them arising out of the motor vehicle accident; and (3) it has no duty to indemnify Hooten, the United States of America or the United States Postal Service for any judgment against them arising out of the motor vehicle accident.
On June 28, 1999, the United States of America and the United States Postal Service (United States) filed an Answer to the First Amended Complaint (# 16). On August 17, 1999, Defendants West American Insurance Company (West American), Campbell, Lukens-Campbell and Griffet filed their Answer. In addition, West American filed a Counterclaim for Declaratory Judgment (# 22). In its Counterclaim, West American sought a declaratory judgment stating that: (1) Plaintiff's policy issued to Hooten provided coverage for the bodily injury and property damage claims arising out of the February 6, 1999, motor vehicle accident; (2) Plaintiff has an obligation to reimburse West American Insurance Company the sum of $3,671.00 paid by it to Campbell for the total loss of Campbell's 1991 Isuzu pickup truck, and further has an obligation to reimburse Campbell the sum of $500.00 paid by him to satisfy his deductible; and (3) Plaintiff has a duty and obligation to defend Hooten and/or the United States Postal Service in connection with any claims arising out of the motor vehicle accident.
On February 2, 2000, West American, Campbell, Campbell-Lukens and Griffet filed their Motion for Summary Judgment (# 34) seeking judgment in their favor on Plaintiff's First Amended Complaint and on West American's Counterclaim. On February 17, 2000, Plaintiff filed its Motion for Summary Judgment (# 40) and, on February 18, 2000, the United States filed a Motion for Summary Judgment (# 42). Plaintiff and the United States filed a Stipulated Statement of Undisputed Facts (# 37). On February 28, 2000, Defendants West American, Campbell, Lukens-Campbell and Griffet filed a Stipulation to Statement of Undisputed Facts (# 45) in which they stipulated and agreed to the Statement of Undisputed Facts submitted by Plaintiff and the United States.
Plaintiff has filed two Motions related to pleadings in this case. On February 16, 2000, Plaintiff filed a Motion to Amend First Amended Complaint (# 38). Plaintiff stated that, in its First Amended Complaint, it misquoted the language of the exclusion in the policy issued to Hooten. Plaintiff asked for leave to amend the First Amended Complaint by interlineation to properly quote the language of the exclusion. Plaintiff's Motion to Amend (# 38) is GRANTED.
Also on February 16, 2000, Plaintiff filed a Motion for Leave to File an Answer to West American's Counterclaim (# 39). Plaintiff stated that, by inadvertance, no answer had been filed on behalf of Plaintiff to the Counterclaim. West American has not filed any document opposing this Motion. Accordingly, Plaintiff's Motion for Leave to File an Answer (# 39) is GRANTED.
Summary judgment is appropriate "if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." Fed.R.Civ.P. 56(c); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). In ruling on a motion for summary judgment, a district court has one task and one task only: to decide, based upon the evidence of record, whether there is any material dispute of fact that requires a trial. Waldridge v. American Hoechst Corp., 24 F.3d 918, 920 (7th Cir.1994). In this case, however, the parties have agreed to a Stipulated Statement of Undisputed Facts, so it is agreed that there is no genuine issue as to any material fact. Further, the construction of an insurance policy is a question of law to be decided by the court. DeBord v. United States, 870 F.Supp. 250, 252 (C.D.Ill. 1994); American States Ins. Co. v. Koloms, 177 Ill.2d 473, 227 Ill.Dec. 149, 687 N.E.2d 72, 75 (1997). Therefore, the "interpretation of an insurance policy is a question of law that is an appropriate subject for disposition by way of summary judgment." Jupiter Aluminum Corp. v. Home Ins. Co., 225 F.3d 868, ___, 2000 WL 1185514, at *4 (7th Cir.2000).
The policy issued by Plaintiff to Hooten included the following exclusion:
A. We do not provide Liability Coverage for any person:
. . . . .
5. For that person's liability arising out of the ownership or operation of a vehicle while it is being used to carry persons or property for a fee. This exclusion (A.5) does not apply to a share-the-expense car pool.
Plaintiff argues that it is evident Hooten was transporting property for a fee at the time of the collision and the exclusion should be held applicable to deny coverage.
The parties do not dispute that Illinois law governs the interpretation of the insurance policy at issue. See River v. Commercial Life Ins. Co., 160 F.3d 1164, 1168 (7th Cir.1998). A court's primary objective in construing the language of an insurance policy is to ascertain and give effect to the intentions of the parties as expressed in their agreement. Koloms, 227 Ill.Dec. 149, 687 N.E.2d at 75; see also American Fire & Cas. Co. v. Broeren Russo Constr. Co., 54 F.Supp.2d 842, 846 (C.D.Ill.1999). If the terms of the policy are clear and unambiguous, they must be given their plain and ordinary meaning. Koloms, 227 Ill.Dec. 149, 687 N.E.2d at 75. However, if the terms of the policy are susceptible to more than one meaning, they are considered ambiguous. Koloms, 227 Ill.Dec. 149, 687 N.E.2d at 75. In such circumstances, the court must construe the policy in favor of the insured and against the insurer that drafted the policy. Employers Ins. of Wausau v. Ehlco Liquidating Trust, 186 Ill.2d 127, 237 Ill.Dec. 82, 708 N.E.2d 1122, 1130 (1999). In addition, provisions that limit or exclude coverage will be interpreted liberally in favor of the insured and against the insurer. Koloms, 687 N.E.2d at 75. An exclusionary clause will be applied to exclude coverage under the insurance...
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