713 F.3d 963
8th Cir.2013Background
- McGhee and Harrington were wrongfully convicted in 1978 for a murder; later released after Iowa Supreme Court found due process issues in 2003.
- In 2005 they sued under 42 U.S.C. §§ 1983, 1985(3) against the City for malicious prosecution and sought insurance coverage under CIC and Columbia policies.
- CIC issued two excess liability policies (1983–84 and 1984–85) with Endorsement 6 excluding certain police acts unless underlying insurance covers them.
- Columbia issued five special excess liability policies (covering 1977–82) and one umbrella policy (1982–83) with definitions of personal injury and occurrence including malicious prosecution.
- District court granted summary judgment against City/McGhee on most policies, finding no coverage under most policies, and no extrinsic evidence or multiple trigger applicable, except potentially the 1977–78 Columbia policy.
- This appeal asks whether any policies provide coverage for malicious prosecution given the asserted injuries spanning the period of imprisonment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Extrinsic evidence admissibility | City/McGhee seek extrinsic evidence to prove intent of parties. | Insurers contend no ambiguity; extrinsic evidence not allowed for construction. | District court correctly refused extrinsic evidence; no ambiguity established. |
| Multiple triggers for malicious prosecution | City/McGhee contend injuries span entire imprisonment, triggering multiple periods. | Genesis framework should apply; injuries occur when underlying charges filed, not across span. | Follow Genesis: no multi-trigger coverage for malicious prosecution under Columbia/Columbia policies. |
| 1977-78 Columbia policy under reasonable expectations | Policy excludes only in an unusual way; reasonable expectations doctrine supports coverage. | Doctrine does not override explicit exclusions; still no coverage. | Majority applies reasonable expectations to find coverage under 1977-78 Columbia policy. |
| CIC excess policies (1983–85) coverage | Underlying Admiral policies provide trigger; damage during policy term can qualify as occurrence. | Genesis controls; no coverage for malicious prosecution. | Majority finds CIC policies potentially covered for malicious prosecution under Admiral terms. |
| Overall policy construction | Insurers should cover damages arising from malicious prosecutions within policy periods. | Policy language, construed to give effect to intent, excludes such coverage. | Affirm for most policies; reverse as to 1977-78 Columbia; remand for further proceedings. |
Key Cases Cited
- Genesis Ins. Co. v. City of Council Bluffs, 677 F.3d 806 (8th Cir. 2012) (set precedent on multiple triggers and coverage in malicious prosecution)
- City of Erie, Pa. v. Guar. Nat’l Ins. Co., 109 F.3d 156 (3d Cir. 1997) (malicious prosecution and occurrence concepts in coverage)
- Clark-Peter son Co. v. Indep. Ins. Assocs., Ltd., 492 N.W.2d 675 (Iowa 1992) (reasonable expectations doctrine and coverage breadth)
- Johnson v. Farm Bureau Mut. Ins. Co., 533 N.W.2d 203 (Iowa 1995) (reasonable expectations doctrine cited)
- Essex Ins. Co. v. Field-house, Inc., 506 N.W.2d 772 (Iowa 1993) (endorsements/exclusions enforceable if clear)
- Nationwide Agri-Business Ins. Co. v. Goodwin, 782 N.W.2d 465 (Iowa 2010) (clear/unambiguous exclusions enforced)