Crook v. Allstate Indem. Co.
Citation | 314 So.3d 1188 |
Decision Date | 26 June 2020 |
Docket Number | 1180996 |
Parties | Kevin CROOK v. ALLSTATE INDEMNITY COMPANY, The Barker Agency, and Allstate Insurance Company |
Court | Alabama Supreme Court |
Jeffrey E. Holmes of Boles Holmes Parkman White LLC, Birmingham, for appellant.
Thomas E. Bazemore III and Gordon J. Brady III of Huie, Fernambucq & Stewart, LLP, Birmingham, for appellees.
Kevin Crook appeals a summary judgment entered by the Tuscaloosa Circuit Court in favor of Allstate Indemnity Company ("Allstate Indemnity"), Allstate Insurance Company ("Allstate Insurance"), and The Barker Agency (hereinafter collectively referred to as "the defendants"). We affirm the summary judgment.
Crook owns lake-front property in Tuscaloosa County. The property consists of a house, a bathhouse, a garage, a deck, and a boat dock. The deck is not directly connected to the house; an exterior stairway connects the house to the deck. The boat dock is, in turn, connected to the side of the deck opposite the stairway and house.1 A portion of the boat dock is covered with a roof supported by pilings, but the boat dock has no walls.
In 2006, Crook, through The Barker Agency,2 obtained property insurance on the house and other structures from Allstate Indemnity. Allstate Indemnity issued a policy to Crook ("the policy") and provided uninterrupted insurance coverage of Crook's house from 2006 through 2015. Crook's deposition testimony indicates that, during that time, although Crook was sent a renewal policy each year with the details of the policy and specific instructions to read the renewal policy and determine if the policy limits were sufficient, Crook was not aware of the actual policy limits provided by Allstate Indemnity and did not read the renewal notices. Crook answered in the affirmative when asked if he "simply trust[ed] that the limits supplied by [Allstate Indemnity were] exactly what [he] need[ed]."
The policy provided that the "limits of insurance" for "Coverage A Dwelling Protection" ("Coverage A") was $56,049 and for "Coverage B Other Structure Protection" ("Coverage B") was $11,455. The policy stated, in pertinent part:
The term "dwelling" is defined in the policy as "a one, two, three or four family building structure, identified as the insured property on the Policy Declarations, where you reside and which is principally used as a private residence." The term "building structure" is defined in the policy as "a structure with walls and a roof."
On February 12, 2015, Allstate Indemnity conducted an inspection of the property for underwriting purposes. After the inspection, on February 23, 2015, The Barker Agency sent Crook the following letter (Allstate Insurance's name was also on the letter):
On April 14, 2015, a storm damaged the deck and the boat dock; the amount of the damage caused "was at or greater than the coverage provided by" Coverage B. Crook reported the storm-caused damage. On April 24, 2015, Kevin Smith, a "claims service analyst" employed by Allstate Insurance, inspected the damage reported by Crook. Smith concluded that the deck and the boat dock had been damaged by the storm and that the damage was covered under Coverage B, rather than Coverage A. Accordingly, on April 28, 2015, Allstate Indemnity paid Crook the Coverage B policy limit of $11,455.
On June 7, 2016, Crook sued the defendants, asserting claims of breach of contract, bad-faith failure to pay a claim, negligent/wanton procurement of insurance, and estoppel.3 Concerning Crook's breach-of-contract and bad-faith claims, Crook alleged that the damage to the deck and the boat dock should have been covered under Coverage A, which has a higher limit of insurance in the amount of $56,049. Concerning Crook's negligent/wanton-procurement-of-insurance claim, Crook alleged that he relied upon the defendants to provide adequate coverage for the property and that the defendants "knew or should have known that [Coverage B] ... would be insufficient to cover damages to [the] deck and [the] boat [dock]." Concerning his estoppel claim, Crook alleged that the defendants, in the February 23, 2015, letter set forth above, "assur[ed] [Crook] that his insurance coverage was sufficient" and that the defendants should have known that the alleged assurances in the February 23, 2015, letter "would cause [Crook] to not take further actions to procure additional or different insurance coverage." Crook asserted that the defendants "are estopped from asserting a position inconsistent with the representations in the February 23, 2015, letter."
On October 9, 2017, Allstate Indemnity and The Barker Agency filed separate motions for a summary judgment, and on September 27, 2018, Crook filed a response. Following a hearing, the circuit court entered a summary judgment in favor of Allstate Indemnity and The Barker Agency as to all claims against them on February 27, 2019.
On April 10, 2019, Allstate Insurance filed a motion for a summary judgment, and on July 24, 2019, Crook filed a response. Following a hearing, the circuit court entered a summary judgment in favor of Allstate Insurance as to all claims against it on July 29, 2019. The circuit court incorporated its February 27, 2019, order into the July 29, 2019, order and further stated that the policy "was issued by Allstate Indemnity ..., not Allstate Insurance ...; and that Allstate Indemnity ... ultimately investigated and issued payments on [Crook's] claim." Crook appealed.
Our standard of review of a summary judgment is well settled:
Pritchett v. ICN Med. Alliance, Inc., 938 So. 2d 933, 935 (Ala. 2006).
First, Crook argues that the circuit court erred in entering a summary judgment in favor of Allstate Indemnity on Crook's breach-of-contract claim. Crook argues that "[t]he plain language of the policy provides that the deck [and] boat [dock are] covered under Coverage A," rather than Coverage B. Crook's brief, p. 34.
This Court applies the following principles of construction in interpreting an insurance contract:
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