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Wurster Construction Co. v. Essex Insurance Co.

Citations: 918 N.E.2d 666; 2009 Ind. App. LEXIS 2835; 2009 WL 5124539Docket: No. 41A01-0903-CV-130

Court: Indiana Court of Appeals; December 28, 2009; Indiana; State Appellate Court

Narrative Opinion Summary

The case involves an appeal by Wurster Construction Co., Inc. against the trial court's belated grant of Essex Insurance Company's motion to correct error, which led to summary judgment in favor of Essex. The legal dispute centers on whether the belated grant is void under Indiana Trial Rule 58.3 due to a 'deemed denial' and whether Essex can cross-appeal issues from its motion. The trial court's decision was voided, with instructions to enter summary judgment for Essex. The underlying dispute arose from a wrongful death claim after Christian King's accident, an employee of a subcontractor on a project where Wurster was the general contractor and Kane Construction was a subcontractor required to maintain insurance. Essex's policy contained exclusions that precluded coverage for injuries to independent contractors' employees. The court ruled that Essex had no duty to defend or indemnify Kane or Wurster, vacating the prior order. Essex's entitlement to cross-appeal was affirmed, while the court found that the insurance broker, Walker, fulfilled his duty of care in procuring insurance for Kane. The court's decision ultimately favored Essex, dismissing claims against them and reinforcing the policy exclusions.

Legal Issues Addressed

Belated Grant under Indiana Trial Rule 58.3

Application: The trial court's belated grant of Essex's motion to correct error was deemed void as it occurred after the deemed denial period, and Wurster's timely appeal of the belated grant upheld the 'deemed denied' provision.

Reasoning: Wurster argues that the trial court's January 27, 2009 Belated Grant is invalid according to Trial Rule 58.3(A) and cites Garrison v. Metcalf to support the claim that the 2008 Order should remain since the trial court lost the power to rule after the deemed denial period.

Broker's Duty of Care in Insurance Procurement

Application: The court found that Walker, acting as Kane's broker, was responsible for procuring the requested insurance and that any accepted terms were imputed to Kane, despite not receiving the policy.

Reasoning: Walker was identified as Kane's broker, responsible for procuring the insurance Kane requested, and owed a duty of reasonable care and diligence in that role.

Cross-Appeal Rights after Deemed Denial

Application: Essex was entitled to assert cross-error on the issues raised in its motion to correct error, aligning with the Supreme Court's reasoning, as the belated grant occurred within the appeal period.

Reasoning: The conclusion is that Essex is entitled to assert cross-error on these issues, aligning with the Supreme Court's reasoning.

Insurance Policy Interpretation and Exclusions

Application: Essex's insurance policy exclusions precluded coverage for injuries to independent contractors' employees, and the court found no duty to defend or indemnify Kane or Wurster in the wrongful death claim.

Reasoning: Insurance carriers can limit coverage through clearly stated exclusions...Essex had no duty to insure either Kane or Wurster for King's injuries.