An employee of High Performance Alloys, Inc. died while working at the company’s facility. The deceased employee’s estate sued the company for wrongful death, alleging gross negligence, willful and wanton conduct, disregard of safety regulations, and actual intent to cause injury. The complaint referenced prior safety violations, knowledge of hazardous conditions, failure to implement available safety measures, and a claim that the employer acted with actual intent to cause injury.
The estate’s lawsuit was pending in Indiana state court. High Performance Alloys sought coverage under its Worker’s Compensation and Employers’ Liability Insurance Policy issued by Insurance Company of the West. ICW denied coverage, asserting the claims were excluded by the policy. ICW then filed a federal declaratory judgment action in the United States District Court for the Southern District of Indiana, seeking a determination that it had no duty to defend or indemnify High Performance Alloys. High Performance Alloys counterclaimed for coverage. The district court granted judgment in favor of ICW, holding that the claims were either barred by Indiana’s Workers’ Compensation Act or excluded by the Policy’s intentional acts exclusion.
On appeal, the United States Court of Appeals for the Seventh Circuit reviewed the district court’s ruling de novo. The Seventh Circuit held that the estate’s allegations, even if true, either described an accidental injury governed exclusively by Indiana’s Workers’ Compensation Act or an intentional injury excluded from coverage by the policy. The court found the complaint did not allege facts sufficient to plead an intentional tort under Indiana law and denied a request to certify questions to the Indiana Supreme Court. The court affirmed the district court’s judgment, holding that Insurance Company of the West has no duty to defend High Performance Alloys in the underlying lawsuit.
This article was first published by Justia.
