Luikart v. Valley Brook Concrete & Supply, Inc.

613 S.E.2d 896, 216 W. Va. 748, 2005 W. Va. LEXIS 24
CourtWest Virginia Supreme Court
DecidedMay 10, 2005
Docket31867
StatusPublished
Cited by21 cases

This text of 613 S.E.2d 896 (Luikart v. Valley Brook Concrete & Supply, Inc.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Luikart v. Valley Brook Concrete & Supply, Inc., 613 S.E.2d 896, 216 W. Va. 748, 2005 W. Va. LEXIS 24 (W. Va. 2005).

Opinion

PER CURIAM:

Paul Luikart (hereinafter referred to as “Mi-. Luikart”), as administrator for the estate of his deceased son, Paul Travis Luikart (hereinafter referred to as “Travis”), and as assignee of the claims of Valley Brook Concrete and Supply, Inc. (hereinafter referred to as “Valley Brook”), appeals from an order entered January 12, 2004, 1 by the Circuit Court of Putnam County. By that oi’der, the circuit court found that no coverage existed under the exclusionary language of the commercial general liability insurance policy issued to Valley Brook by Motorists Mutual Insurance Company (hereinafter referred to as “Motorists”). On appeal, Mr. Luikart argues that the exclusions are void because they were not disclosed and that Motorists had a duty to offer “stop gap” insurance. Based upon the parties’ arguments, the record designated for our consideration, and the pertinent authorities, we affirm the decision of the circuit court.

I.

FACTUAL AND PROCEDURAL HISTORY

The ease before us follows the circuit court’s grant of summary judgment in a declaratory judgment action based on exclusions in an insurance policy. To understand the present posture of the case and the parties’ relationships, it is necessary to have a familiarity with the facts of the wrongful death action that preceded the filing of the declaratory judgment action.

A. Wrongful Death Action

Valley Brook is a seller of concrete and related items. An essential part of its business is the delivery of its products to its customers. Travis Luikart was employed by Valley Brook as a truck driver. On August 28, 1999, Travis was killed in a single vehicle accident 2 while delivering concrete within the scope of his employment for Valley Brook. Mr. Luikart, as the administrator of Travis’ estate, filed a wrongful death action against Valley Brook in the Circuit Court of Putnam County, wherein he claimed a deliberate intent violation under the West Virginia Workers’ Compensation Act. See W. Va. Code § 23-4-2(c)(2) (1913) (Repl.Vol. 1994). 3 In this suit, Mr. Luikart alleged that the truck’s suitability for operation had dangerously deteriorated, 4 and that Valley Brook had deliberately and intentionally exposed Travis to an unsafe working condition. At the time of the accident, Valley Brook had a commercial general liability policy through Motorists, 5 and tendered defense of the *751 wrongful death action to its insurer. This wrongful death action was eventually consolidated with a subsequently-filed declaratory judgment action.

B. Declaratory Judgment Action

Upon receipt of the possible claim under the policy, Motorists sent a letter dated October 4, 1999, to Brent Clark, President of Valley Brook. The letter acknowledged receipt of the wrongful death action and stated an intention to defend based on a reservation of rights. In June 2000, Motorists filed a declaratory judgment action seeking a determination that it had no duty to defend against the claim made by Mr. Luikart or to indemnify Valley Brook. Motorists based its position on the policy’s exclusions for (1) expected or intended injury; (2) workers’ compensation laws; and (S) employer’s liability. Specifically, the policy provides:

COMMERCIAL GENERAL LIABILITY COVERAGE FORM CG 0001 (07-98)
Various provisions in this policy restrict coverage. Read the entire policy carefully !«• determine rights, duties and what is and is not covered ....
SECTION I-COVERAGES
COVERAGE A BODILY INJURY AND PROPERTY DAMAGE LIABILITY
2. Exclusions
This insurance does not apply to:
a. Expected Or Intended Injury
“Bodily injury” or “property damage” expected or intended from the standpoint of the insured. This exclusion does not apply to “bodily injury” resulting from the use of reasonable force to protect persons or property.
d. Workers!’] Compensation And Similar Laws
Any obligation of the insured under a workers’ compensation, disability benefits or unemployment compensation law or any similar law.
e. Employer’s Liability
“Bodily injury” to:
(1) An “employee” of the insured arising out of and in the course of:
(a) Employment by the insured; or
(b) Performing duties related to the conduct of the insured’s business; or
(2) The spouse, child, parent, brother or sister of that “employee” as a consequence of Paragraph (1) above.
This exclusion applies:
(1) Whether the insured may be liable as an employer or in any other capacity; and
(2) To any obligation to share damages with .or repay someone else who must pay damages because of the injury!.]

C. Consolidation of the Actions

Thereafter, the circuit court consolidated the wrongful death action with the declaratory judgment action. The matter was mediated, and Motorists did not offer any settlement monies. However, Valley Brook and Mr. Luikart entered into a Settlement Agreement. The terms of the agreement were such that Valley Brook confessed judgment in the amount of three million dollars; Valley Brook assigned its rights under the insurance policy to Mr. Luikart; and Mr. Luikart agreed not to execute the judgment against Valley Brook.

The circuit court approved the Settlement Agreement of the wrongful death action and dismissed the same from the docket, leaving only the declaratory judgment action for further resolution. Mr. Luikart, on behalf of the estate and as assignee of Valley Brook’s rights, then filed amended counterclaims in the declaratory judgment action against Motorists seeking payment for the Settlement Agreement reached with Valley Brook. Motorists moved to dismiss the counterclaims, and further moved for summary judgment on the coverage issue. The circuit court granted summary judgment to Motorists on the coverage issue and dismissed Mr. Luikart’s claims. By order entered January 12, 2004, the circuit court found in favor of Motorists *752 on the basis that the insurance policy afforded no coverage under the clear and unambiguous exclusions set forth in the policy. From this adverse ruling, Mr. Luikart appeals to this Court.

II.

STANDARD OF REVIEW

This ease is before this Court on appeal from the circuit court’s order granting summary judgment in favor of Motorists. “A circuit court’s entry of summary judgment is reviewed

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Bluebook (online)
613 S.E.2d 896, 216 W. Va. 748, 2005 W. Va. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/luikart-v-valley-brook-concrete-supply-inc-wva-2005.