An Indiana truck insurer will not be liable for a crash caused by the insured’s unforeseeable actions of knowingly driving an overloaded semi-truck without properly functioning brakes. A split Indiana Supreme Court voted 3-2 to allow the Indiana Court of Appeals’ ruling in ONB Insurance Group Inc. et al v. Amy Jones et al to stand.
The truck accident in question killed three people – a husband-and-wife and their granddaughter. Representatives of the estates of each pursued insurance coverage for negligence of the driver/owner of the truck. There were two insurance companies in question: One the company providing coverage and the other an independent insurance broker who seeks insurance quotes from multiple brokers and insurers. The broker was not an original party to the lawsuit.
The insurer filed a third-party claim against the broker, alleging the broker conspired with the trucking company owner to induce its firm to issue a commercial vehicle liability policy. That claim failed as a matter of law when the trial court awarded summary judgment. Claims subsequently filed by plaintiffs against the broker were given permission to proceed by the trial judge. But the appellate court later reversed, concluding the driver’s unlawful acts weren’t foreseeable by the broker (in light of the 2016 Indiana Supreme Court decision in Goodwin et al v. Yeakle’s Sports Bar and Grill, which created a separate test for “duty of care” by defendants compared to “proximate cause” of the injury). That is the decision the Indiana Supreme Court affirmed.