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OMS National Insurance v. Turbyfill

Citations: 176 F. Supp. 3d 1307; 2016 U.S. Dist. LEXIS 47442; 2016 WL 1355597Docket: Case No. 3:14-CV-00622

Court: District Court, N.D. Florida; March 31, 2016; Federal District Court

Narrative Opinion Summary

In this case, OMS National Insurance Company (OMSNIC) filed for a declaratory judgment against Dr. David Turbyfill, asserting that it has no duty to defend or indemnify him concerning a lawsuit filed by Kara Stewart alleging sexual assault and battery. Turbyfill counterclaimed, alleging breach of his professional liability insurance. The policy, effective from November 2012 to November 2013, specifically excludes coverage for claims of sexual misconduct. Turbyfill's defense and indemnification requests were denied, leading to the present legal action. The court evaluated cross-motions for summary judgment, considering both Florida and Illinois law, but found the choice of law irrelevant due to the exclusion's clarity. Turbyfill's arguments, including the use of extrinsic evidence, were found unpersuasive as the allegations clearly fell within the exclusion. The court granted OMSNIC's motion for summary judgment, denied Turbyfill’s motion, and ruled that the insurer had no obligation to defend or indemnify him. The court also dismissed related motions as moot, affirming the exclusion's applicability, and instructed the Clerk to enter a final judgment for OMSNIC, taxing costs against Turbyfill.

Legal Issues Addressed

Choice of Law in Insurance Contracts

Application: The choice of law issue is deemed irrelevant by the court as the exclusion precludes coverage under either Florida or Illinois law.

Reasoning: The Court determines that the choice of law issue is irrelevant as Turbyfill lacks coverage under the policy’s clear language.

Declaratory Judgment and Insurance Defense

Application: OMSNIC seeks a declaratory judgment to confirm it has no duty to defend or indemnify Turbyfill in a sexual assault lawsuit due to exclusions in the insurance policy.

Reasoning: OMS National Insurance Company (OMSNIC) has initiated legal proceedings against Dr. David Turbyfill and Kara Stewart, seeking a Declaratory Judgment to establish that it has no obligation to defend or indemnify Turbyfill in relation to a sexual assault and battery lawsuit filed by Stewart.

Duty to Defend and Extrinsic Evidence

Application: Turbyfill's claim that extrinsic evidence should be considered to establish OMSNIC's duty to defend is rejected as the policy's exclusion is clear and allegations fall within it.

Reasoning: Turbyfill claims that, under Illinois law, the court may consider facts outside the underlying complaint to determine the duty to defend, presenting extrinsic evidence to assert his non-involvement in the alleged misconduct and OMSNIC's failure to investigate adequately.

Exclusions in Professional Liability Insurance

Application: The insurance policy held by Turbyfill explicitly excludes coverage for claims related to sexual misconduct, which OMSNIC argues applies to the allegations made by Stewart.

Reasoning: However, the policy explicitly excludes coverage for claims related to sexual misconduct or abuse.

Interpretation of Insurance Policy Exclusions

Application: The court finds that the Sexual Misconduct Exclusion is clear and unambiguous, negating OMSNIC's duty to defend or indemnify Turbyfill.

Reasoning: The Sexual Misconduct Exclusion in the policy explicitly states that OMSNIC will not pay or defend against any sexual misconduct claims, and there is no ambiguity in the allegations from the Stewart and DOH complaints that would alter this exclusion.

Summary Judgment Standards

Application: The court evaluates cross-motions for summary judgment by assessing each independently and favoring the nonmoving party’s factual circumstances.

Reasoning: In evaluating cross motions for summary judgment, the Court adheres to established standards, assessing each motion independently while favoring the nonmoving party’s factual circumstances.