Weber Gallagher Simpson Stapleton Fires & Newby LLP

September 29, 2006 : Kenneth M. Portner and Michael S. Savett Obtain Summary Judgment in Three Insurance Coverage Lawsuits

Kenneth M. Portner and Michael S. Savett, partners in Weber Gallagher's Insurance practice group, obtained summary judgment on behalf of Pennsylvania National Insurance Company in three insurance coverage lawsuits that concluded in September 2006.

In Penn National v. Chilson, a Tioga County, Pennsylvania judge granted a motion for summary judgment filed on behalf of Penn National by Mr. Portner and held that the insurer did not owe coverage to Ryan Chilson under a Personal Auto insurance policy Penn National issued to his mother, Mary Chilson.  Ryan Chilson was involved in a 2004 automobile accident and was sued by a passenger in the car he was operating for bodily injuries sustained in the crash.  Because Ryan Chilson did not have permission from the owner of the vehicle (the parents of another passenger) to operate the vehicle involved in the accident, he was not entitled to coverage under his mother's policy and the court declared that Penn National had no duty to defend or indemnify him against the claims asserted in the underlying lawsuit.
 
In 1930-34 Associates v. Penn National, a Philadelphia County judge granted Penn National’s motion for summary judgment filed by Mssrs. Portner and Savett and held that the insurer did not owe coverage to an general contractor seeking additional insured coverage for an underlying personal injury claim at a construction site.  The court concluded that two exclusions in the Penn National policy applied to bar coverage for the claim, which involved a worker's fall from scaffolding at the job site and resulting serious personal injuries.  As a result, Penn National had no obligation to defend or indemnify the general contractor.
 
In Pinto v. Route 18 Shopping Center Associates, a Middlesex County, New Jersey judge granted a motion for summary judgment filed by Mr. Savett and dismissed Harleysville Insurance Company's claim against Penn National for reimbursement of a settlement payment and defense costs.  The underlying case involved a minor's slip and fall on ice in the parking lot of a shopping center where Penn National's insured leased space.  The minor sustained serious head injuries and sued the owner of the shopping center and the company responsible for clearing ice and snow.  Harleysville, the insurer for the landlord, placed Penn National on notice of the lawsuit just before contributing $211,500 on behalf of the landlord toward the overall $400,000 settlement.  Harleysville then sued Penn National, claiming that the landlord was also an additional insured under the tenant's policy with Penn National and that the Penn National policy was primary, not excess, to the Harleysville coverage.  Harleysville sought reimbursement of the $211,500, $13,000 for defense costs, and $7,000 for counsel fees incurred in filing a declaratory judgment action, seeking a total of about $231,500.  The court granted Penn National's motion and denied Harleysville's cross-motion on the basis that the landlord was not an additional insured under the Penn National policy.  As a result, Penn National is not responsible for reimbursing Harleysville.  The case was the subject of a story in the "Suits & Deals" section of the October 9, 2006 issue of the New Jersey Law Journal.