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The Bar Plan Mutual Insurance Company v. Likes Law Office, LLC Kevin L. Likes Rickey D. Whitaker and Cheryl L. Whitaker

Citations: 44 N.E.3d 1279; 2015 Ind. App. LEXIS 680; 2015 WL 6023075Docket: 02A03-1502-CT-65

Court: Indiana Court of Appeals; October 15, 2015; Indiana; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case involves an appeal by The Bar Plan Mutual Insurance Company against Likes Law Office, LLC, concerning a summary judgment in favor of Likes. The central issue revolves around whether attorney Kevin Likes made a material misrepresentation on a 2011 insurance policy renewal application by failing to disclose knowledge of potential claims. The Bar Plan contended that Likes was aware of potential malpractice claims due to prior court dismissals and should have reported this when renewing his policy. The trial court ruled that there was no material misrepresentation, granting summary judgment to Likes. The Bar Plan also challenged the trial court's partial denial of its motion to strike expert testimony regarding insurance industry practices. The appellate court reversed the trial court’s decision, emphasizing that Likes’ failure to notify the insurer of potential liabilities precluded coverage under the policy's exclusion clause. Furthermore, the appellate court identified errors in admitting speculative expert testimony and certain affidavit paragraphs, which did not adhere to evidentiary standards. The decision underscores the critical importance of accurate disclosures in insurance applications and the standards for admitting expert testimony in legal proceedings.

Legal Issues Addressed

Admissibility of Expert Testimony

Application: The court evaluated the admissibility of expert testimony regarding industry practices and found errors in admitting certain speculative paragraphs.

Reasoning: The court found that generalized statements do not meet the standards for expert testimony and determined that the trial court erred in admitting paragraphs 15 through 23 of Sagalow’s affidavit.

Construction and Interpretation of Insurance Contracts

Application: The court analyzed the insurance policy terms to ascertain the parties' intent and ensure no terms were rendered ineffective.

Reasoning: Contracts, including insurance policies, are governed by the same construction rules as other contracts, with the interpretation being a legal question.

Insurance Policy Exclusions and Notice Requirements

Application: The policy's exclusion clause was examined to determine whether Likes' failure to disclose potential liability precluded coverage.

Reasoning: The Policy excludes coverage for claims against an insured who was aware or should have been aware of circumstances that could lead to a claim before the policy's effective date.

Material Misrepresentation in Insurance Renewal Application

Application: The court examined whether Likes made a material misrepresentation on his insurance renewal application by failing to disclose knowledge of potential claims.

Reasoning: Likes notified the Bar Plan on December 7, 2012, which subsequently denied coverage, citing that Likes had knowledge of potential claims as early as March 16, 2010...

Summary Judgment Standards

Application: The appellate court applied the same standards as the trial court to determine if there was a genuine issue of material fact and if the law was correctly applied.

Reasoning: Summary judgment is deemed appropriate when no genuine issues of material fact exist, and the moving party is entitled to judgment as a matter of law, as defined under Indiana Trial Rule 56(C).