U.S. DISTRICT COURT GRANTS SUMMARY JUDGMENT IN FAVOR OF INSURER BASED ON MOTOR VEHICLE EXCLUSION

Last week, the United States District Court, Northern District of Texas, concluded that Allstate had no duty to defend or indemnify its insured homeowner in suit against the insured homeowner arising from a motor vehicle collision. Allstate v. Daum, No. 3:20-CV-0671-D, 2020 WL 4883956 (N.D. Tex., Aug. 20, 2020, mem. op.),

In the underlying lawsuit, Jillian Pierce’s minor granddaughter, for whom Pierce was legal guardian, was at the insured’s residence and under the insured’s care, when the granddaughter was riding a bicycle in the alley behind the home and was struck by a motor vehicle. In the underlying lawsuit, Pierce contended that the insured was negligent because the insured allegedly failed to properly supervise and manage the granddaughter and because the insured allowed the granddaughter to ride her bicycle in the street and alley.

The insured requested coverage from Allstate under a House & Home Policy (the “Policy”) for Pierce's claims against her. The Policy excluded coverage for “bodily injury or property damage arising out of the ownership, maintenance, use, occupancy, renting, loaning, entrusting, loading or unloading of any motor vehicle or trailer.”

Allstate sought a declaratory judgment that it was not obligated to defend or indemnify its insured in the underlying lawsuit. And Allstate moved for summary judgment based on the Policy’s exclusion.

Based on the exclusion, the court concluded that Allstate did not owe a duty to defend or indemnify the insured and granted Allstate's motion for summary judgment. The court reasoned that “the plain meaning of this exclusion is that it excludes coverage for claims that arise out of incidents involving automobiles.” The court further reasoned that “the claims in the underlying lawsuit were for bodily injury (i.e., the granddaughter’s injuries), and that those injuries arose out of the use of a motor vehicle.”