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Metropolitan Property & Casualty Insurance v. McCarthy

Citations: 43 F. Supp. 3d 1157; 2014 U.S. Dist. LEXIS 117344; 2014 WL 4162562Docket: Case No. C14-5143 BHS

Court: District Court, W.D. Washington; August 21, 2014; Federal District Court

Narrative Opinion Summary

In this case, the court granted Metropolitan Property and Casualty Insurance Company's (MetLife) motion for summary judgment regarding its insurance coverage obligations related to claims brought by the McCarthy family against Jordan Paris. The McCarthys alleged that Paris negligently failed to seek help for their daughter, who died from ecstasy use. MetLife initially denied coverage under the homeowners' insurance policy held by Paris's parents due to an exclusion for injuries from controlled substances. The court found that Paris did not qualify as an 'insured' under the policy, having moved out of his parents' home prior to the incident. Even if he were considered insured, the policy’s exclusion for controlled substances would preclude coverage. Furthermore, the court dismissed the McCarthys' counterclaims of bad faith against MetLife, as Washington law does not permit third-party claims of bad faith regarding liability policies. The court determined no genuine issue of material fact existed, affirming that MetLife had no duty to defend or indemnify Paris, thereby granting MetLife's summary judgment motion and dismissing the McCarthys’ counterclaims.

Legal Issues Addressed

Definition of Insured under Homeowners Insurance Policy

Application: Paris was not considered an insured under the MetLife policy as he did not reside with the policyholders at the time of the incident.

Reasoning: MetLife determined that Paris, being 18 years old and having moved out of his parents' home at the time of the incident, did not qualify as an 'insured' under the terms of the policy.

Insurance Coverage Exclusion for Controlled Substances

Application: The policy excludes coverage for bodily injury arising from the use of controlled substances, which includes ecstasy.

Reasoning: The policy, effective from April 15, 2006, to April 15, 2007, provides liability coverage of $500,000 per occurrence but explicitly excludes coverage for bodily injury resulting from the use of controlled substances, which includes ecstasy.

Residency Requirement for Insurance Coverage

Application: Washington law assesses residency based on factors such as intent, relationship formality, and other lodgings, concluding Paris did not reside with the Sundsmos.

Reasoning: Washington courts assess residency based on four factors: intent of the person, relationship formality, dwelling proximity, and existence of another lodging.

Summary Judgment Standard under Washington Law

Application: Summary judgment is appropriate when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law.

Reasoning: Summary judgment is warranted only when there is no genuine issue of material fact, and the moving party is entitled to judgment as a matter of law, which is established if the nonmoving party fails to show sufficient evidence on essential elements of their claims.

Third-Party Standing in Bad Faith Insurance Claims

Application: The McCarthys lacked standing to claim bad faith against MetLife as third-party claimants under Washington law.

Reasoning: The Court notes that, under Washington law, third-party claimants cannot directly sue an insurer for breach of good faith related to a liability policy, as established in Tank v. State Farm Fire & Cas. Co.