Court Says There May Be No Coverage Even If Pedestrian Acted Intentionally in Collision with Vehicle
November 30, 2013 |A federal district court in Michigan has refused to dismiss an insurer’s declaratory judgment action, ruling that an alleged collision between a pedestrian and a vehicle might not have been an “accident” for purposes of the insureds’ no-fault insurance policy if the pedestrian’s intentional acts had led to the collision.
The Case
An insurer sought a declaratory judgment that a vehicle-pedestrian collision fell outside the scope of the vehicle owners’ no-fault insurance policy. The insurer argued, based on its review of police reports and other information, that the pedestrian’s injuries were the result of an intentional act rather than an accident. The insureds contended that the pedestrian’s injuries resulted when he intentionally threw himself onto their car and that the insurer had a duty to defend and indemnify them in the pedestrian’s state court lawsuit. The insureds moved to dismiss the insurer’s action.
The Court’s Decision
The court denied the motion to dismiss.
The court explained that the insurance policy stated that it only provided coverage for “accidents.” It then ruled that, contrary to the insureds’ assertions, if either the driver or the pedestrian had committed an intentional act, then the collision was not an “accident” under Michigan law. Indeed, the court declared, if a third party acted intentionally, then the conduct was not “accidental” even where the insured was not at fault.
Accordingly, the court ruled, the pedestrian’s alleged conduct would be taken into consideration in view of all of the available evidence when deciding whether there was an “accident” that would be covered by the insurance policy. Concluding that it was possible that the pedestrian’s injuries and the insureds’ property damage were not the result of an “accident,” and therefore were excluded from insurance coverage, the court determined that the insurer’s complaint set out a valid claim upon which relief could be granted.
The case is Allstate Ins. Co. v. Merrill, No. 13-13410 (E.D. Mich. Nov. 8, 2013).
