City of Lincoln v. County of Lancaster
297 Neb. 256
| Neb. | 2017Background
- A Lancaster County deputy intentionally made physical contact with a City of Lincoln police officer; the officer’s shoulder (recently operated on) was injured and the City paid ~$63,418 in workers’ compensation.
- The County carried a retained-limits liability policy: $250,000 retained limit per occurrence and $4,750,000 policy limits; insurer obligated to pay amounts in excess of the retained limit.
- The City sued the County seeking reimbursement for the medical/compensation expenses it paid on the officer’s behalf.
- The County raised the Political Subdivisions Tort Claims Act (the Act) defenses, asserting the intentional-tort exception (battery) and sovereign immunity unless waived by insurance.
- The district court granted summary judgment for the County, finding the claim arose from a battery (excluded by the Act) and that the County’s insurance did not waive immunity for the amount at issue.
- On appeal the Nebraska Supreme Court affirmed but based on a distinct rationale: battery is not an "occurrence" under the policy, so the policy provided no coverage for the claim and thus the County did not waive immunity.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the City’s claim arises from a battery (intentional-tort exception under §13-910) | The contact was not a battery that bars recovery; the claim should fall under the Act waiver | The deputy’s touching was intentional and constitutes a battery exempting the claim from the Act’s waiver | Court: The touching was intentional; the claim arose from a battery and falls within the intentional-tort exception (County immune absent waiver) |
| Whether the County waived sovereign immunity by purchasing liability insurance under §13-916 | The County’s purchase of liability insurance waived immunity for the City’s claim (even for amounts under retained limit) | The policy covers only accidental "occurrences" and pays only amounts in excess of the retained limit; the battery is not an "occurrence," so no coverage and no waiver | Court: Battery is not an "occurrence" (policy requires accidental happening); policy does not cover the claim, so no waiver of immunity; summary judgment for County affirmed |
Key Cases Cited
- Kimminau v. City of Hastings, 291 Neb. 133, 864 N.W.2d 399 (clarifies statutory interpretation principles under the Act)
- Drake-Williams Steel v. Continental Cas. Co., 294 Neb. 386, 883 N.W.2d 60 (insurance policy interpretation standard — coverage must be clear)
- Britton v. City of Crawford, 282 Neb. 374, 803 N.W.2d 508 (defines battery as harmful intentional contact)
- Austin v. State Farm Mut. Auto. Ins. Co., 261 Neb. 697, 625 N.W.2d 213 (intentional acts are not accidents for insurance coverage)
- Blaser v. County of Madison, 288 Neb. 306, 847 N.W.2d 293 (statutory framework on waiver by purchase of insurance)
- Farr v. Designer Phosphate & Premix Internat., 253 Neb. 201, 570 N.W.2d 320 (discussion on accidental versus intentional causation)
