“Occurrence” Took Place When Wrongfully Convicted Defendant First Had Been Charged, Indiana Court Decides

A federal district court in Indiana, in a case in which a city sought insurance coverage for claims brought by a person who had been wrongfully convicted of a crime, has ruled that the “occurrence” had taken place when the wrongfully convicted defendant first had been charged.

The Case

In November 1996, Christopher Parish was charged with armed robbery and attempted murder based on the report of a home invasion and shooting of Elkhart, Indiana, resident Michael Kershner. Parish was convicted in June 1998.

In December 2005, an Indiana appellate court overturned the conviction and ordered a new trial, after which the criminal case was dismissed in December 2006.

Parish was released from custody in July 2006, after spending eight years in jail.

In September 2007, Parish brought a civil action in federal court asserting federal and state law claims for relief. He alleged that the city of Elkhart and its police had violated his constitutional rights to a fair trial and due process, resulting in Parish’s wrongful arrest, prosecution, and conviction. He also contended that the city and county were liable under the Indiana Tort Claims Act for false arrest, false imprisonment, and intentional infliction of emotional harm.

Parish ultimately settled his suit for $5 million.

The city sought coverage under various insurance policies, and the coverage dispute reached the U.S. District Court for the Northern District of Indiana.

The Court’s Decision

The court ruled that the tort of malicious prosecution had occurred for insurance coverage purposes when the underlying criminal charges had been filed.

Therefore, the court ruled, the “occurrence” dated to 1996 when Parish had been wrongly charged in violation of his due process rights.

Accordingly, it concluded, insurers with policies that were in effect years after Parish was charged and convicted – during time periods when he was incarcerated and the state appellate process finally yielded Parish a victory – did not afford coverage to the city because “[n]othing happened during these policy periods that could be the kind of ‘injury or damage’ covered by these policies.”

The alleged police misconduct had happened years before, as had Parish’s trial and sentencing, the court found. It concluded that even the broader duty to defend was “not broad enough to support for these insurers a duty to defend (or to share in the cost of defense) against Parish’s civil rights complaint.”

The case is TIG Ins. Co. v. City of Elkhart, Nos. 3:13cv902-PPS and 3:13cv992-PPS (N.D. Ind. Aug. 17, 2015).