Erie Insurance Exchange v. Fry

39 Pa. D. & C.4th 20, 1998 Pa. Dist. & Cnty. Dec. LEXIS 100
CourtPennsylvania Court of Common Pleas, Mercer County
DecidedAugust 20, 1998
Docketno. 1997-3271
StatusPublished

This text of 39 Pa. D. & C.4th 20 (Erie Insurance Exchange v. Fry) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Mercer County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Erie Insurance Exchange v. Fry, 39 Pa. D. & C.4th 20, 1998 Pa. Dist. & Cnty. Dec. LEXIS 100 (Pa. Super. Ct. 1998).

Opinion

WHERRY, J.,

In March of 1997, defendant Timothy L. Floch Jr. initiated a civil action against defendant Donald R. Fry in the Court of Common Pleas of Mercer County, Pennsylvania, at civil action no. 992 of 1997, the “underlying lawsuit.” At all times relevant to the cause of action in the underlying lawsuit, Fry was insured by plaintiff Erie Insurance Exchange, pursuant to the terms of the Pioneer 21st Century Home Protector insurance policy, no. Q493104197. Erie initiated this declaratory judgment action to have this court determine whether Erie has any duty or obligation under the Erie policy to defend and indemnify Fry from any claim arising out of the incident between Floch and Fry that occurred on March 26, 1995, which incident is the subject of the underlying lawsuit. Currently pending before this court is Erie’s motion for summary judgment. For the reasons set forth below, this court grants Erie’s motion for summary judgment and declares that Erie has no duty or obligation to either defend or indemnify Fry in the underlying lawsuit.

STANDARD OF REVIEW

A motion for summary judgment is properly granted if, the pleadings, depositions, answers to interrogatories, admissions on file, together with any affidavits, demonstrate that there exists no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. See Pa.R.C.P. 1035.2. The trial court must examine the record in the light most favorable to the non-moving party and resolve all doubts against the moving party. Britamco Underwriters Inc. v. Weiner, 431 Pa. Super. 276, 279, 636 A.2d 649, 650-51 (1994). “Summary judgment may be granted only where the [22]*22right is clear and free from doubt.” 431 Pa. Super, at 279, 636 A.2d at 650.

DISCUSSION

The Declaratory Judgments Act, 42 Pa.C.S. §§7531-7541, may be invoked to determine whether an insurer has a duty to defend and indemnify its insured with respect to an underlying lawsuit. General Accident Insurance Co. of America v. Allen, 547 Pa. 693, 706, 692 A.2d 1089, 1095 (1997), on remand to, 708 A.2d 828 (Pa. Super. 1998). As the Pennsylvania Supreme Court in Allen explained:

“A court’s first step in a declaratory judgment action concerning insurance coverage is to determine the scope of the policy’s coverage. . . . After determining the scope of coverage, the court must examine the complaint in the underlying action to ascertain if it triggers coverage. If the complaint against the insured avers facts that would support a recovery covered by the policy, then coverage is triggered and the insurer has a duty to defend until such time that the claim is confined to a recovery that the policy does not cover. The duty to defend also carries with it a conditional obligation to indemnify in the event the insured is held liable for a claim covered by the policy. . . . Although the duty to defend is separate from and broader than the duty to indemnify, both duties flow from a determination that the complaint triggers coverage.” 547 Pa. at 706, 692 A.2d at 1095. (citations omitted)

Section II of the Erie policy, entitled “Home and Family Liability Protection,” provides in relevant part:

“We will pay all sums up to the amount shown on the Declarations, which anyone we protect becomes legally obligated to pay as damages because of bodily injury or property damage resulting from an occurrence [23]*23during the policy period. We will pay for only bodily injury or property damage covered by this policy. . . .
“If anyone we protect is sued for damages because of bodily injury or property damage covered by this policy, we will provide a defense with a lawyer we choose, even if the allegations are not true.” (emphasis added)
“Occurrence” is defined in the Erie policy as an “accident, including continuous or repeated exposure to the same general harmful conditions.” “Accident,” however, is not defined in the Erie policy.
“In Pennsylvania, whether bodily injury ... is caused by an accident must be determined from the perspective of the insured.” State Farm Mutual Automobile Insurance Co. v. Martin, 442 Pa. Super. 442, 444, 660 A.2d 66, 67 (1995). Although this court has been unable to find a case defining “accident” in the context of a liability insurance policy, this court did find a Pennsylvania Supreme Court case discussing the definition of the phrase “accidental means” in the context of a life insurance policy. In Urian v. Equitable Life Assurance Society, 310 Pa. 342, 165 A. 388 (1933), the Pennsylvania Supreme Court stated:
“Our cases have uniformly held that where the cause of injury or death was an act of the insured, the means which caused the result, to be accidental, must be undesigned and unintentional, that accidental injury or death is an unintended and undesigned result arising from acts done, while injury or death by accidental means is a result arising from acts unintentionally done.” 310 Pa. at 346, 165 A. at 390 (quoted in Martin, 442 Pa. Super, at 444-45, 660 A.2d at 67).

Section II of the Erie policy also excludes coverage to named insureds for bodily injury intentionally inflicted:

[24]*24“What We Do Not Cover — Exclusions
“Personal Liability Coverage
“Medical Payments To Others Coverage
“We do not cover under Personal Liability Coverage and Medical Payments to Others Coverage:
“(1) Bodily injury or property damage expected or intended by anyone we protect.”

For the purpose of an insurance policy provision excluding coverage for bodily injury “expected or intended by the insured,” “[a]n insured intends an injury if he desired to cause the consequences of his act or if he acted knowing that such consequences were substantially certain to result.” United Services Automobile Association v. Elitzky, 358 Pa. Super. 362, 375, 517 A.2d 982, 989 (1986). After a thorough analysis of “the expected or intended harm” clause, the Superior Court in Elitzky held that the clause “is ambiguous as a matter of law and must be construed against the insurer,” 358 Pa. Super, at 375, 517 A.2d at 989, and further held that the words “intended” and “expected” are synonymous for the purpose of interpreting these types of exclusionary clauses. 358 Pa. Super, at 377-78, 517A.2d at 990. Both terms connote an element of conscious awareness on the part of the insured. Id. at 379, 517 A.2d at 991. If the actor does not have the ability to formulate an intent, the resulting act cannot be intentional. Nationwide Mutual Insurance Co. v. Hassinger, 325 Pa. Super. 484, 493, 473 A.2d 171, 176 (1984).

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Related

General Accident Insurance Co. of America v. Allen
692 A.2d 1089 (Supreme Court of Pennsylvania, 1997)
United Services Automobile Ass'n v. Elitzky
517 A.2d 982 (Supreme Court of Pennsylvania, 1986)
General Accident Insurance Co. of America v. Allen
708 A.2d 828 (Superior Court of Pennsylvania, 1998)
Gene's Restaurant, Inc. v. Nationwide Insurance
548 A.2d 246 (Supreme Court of Pennsylvania, 1988)
Britamco Underwriters, Inc. v. Weiner
636 A.2d 649 (Superior Court of Pennsylvania, 1994)
Stidham v. Millvale Sportsmen's Club
618 A.2d 945 (Superior Court of Pennsylvania, 1992)
State Farm Mutual Automobile Insurance v. Martin
660 A.2d 66 (Superior Court of Pennsylvania, 1995)
Nationwide Mutual Insurance v. Hassinger
473 A.2d 171 (Supreme Court of Pennsylvania, 1984)
Urian v. Equitable Life Assurance Society
165 A. 388 (Supreme Court of Pennsylvania, 1932)

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Bluebook (online)
39 Pa. D. & C.4th 20, 1998 Pa. Dist. & Cnty. Dec. LEXIS 100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/erie-insurance-exchange-v-fry-pactcomplmercer-1998.