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, injuring the officer’s shoulder; the City paid about $63,418 in workers’ compensation benefits.
- The County had a retained-limits liability policy: retained limit $250,000 per occurrence; insurer obligated to indemnify damages and claim expenses in excess of that retained limit.
- The City sued the County seeking reimbursement for the workers’ compensation payments.
- The County asserted sovereign immunity under the Political Subdivisions Tort Claims Act (the Act), and that the Act’s intentional-torts exception (including battery) barred the claim; it also relied on the policy language.
- The district court granted summary judgment to the County, finding the claim arose from a battery (excepted from the Act) and that the County’s insurance did not waive immunity for claims below the retained limit.
- On appeal, the Nebraska Supreme Court affirmed but on different grounds: because the policy covered only "occurrences" defined as accidental happenings and a battery is intentional, the policy did not provide coverage and thus did not effect a waiver of immunity.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the City’s claim is barred by the Act’s intentional-torts exception | The contact was accidental/covered and thus within Act’s waiver | The contact was an intentional battery, so excluded by § 13-910 | Court: The touching was intentional (battery); the Act’s exception applies — County immune absent waiver |
| Whether County waived sovereign immunity by purchasing liability insurance under § 13-916 | Procurement of liability insurance waived immunity for this claim; retained-limit argument insufficient | Policy insures only occurrences and obligates insurer only above retained limit; here no coverage because injury from intentional act | Court: No waiver because policy does not cover battery (not an "occurrence"); therefore no coverage and no waiver |
| Whether a battery qualifies as an "occurrence" or "accident" under the policy | City: policy language or retained-limit application should still operate to waive immunity | County: battery is intentional and not an accidental "occurrence"; policy excludes it | Court: Intentional acts are not accidents; battery is not an "occurrence" — no coverage |
| Whether court should decide retained-limit/waiver scope for other policies | City urged resolution for efficiency | County: outcome controlled by policy language here; no need for broader rule | Court: Declined to issue broad rule; waiver depends on specific policy language |
Key Cases Cited
- Kimminau v. City of Hastings, 291 Neb. 133 (interpreting Act's scope and exceptions)
- Drake-Williams Steel v. Continental Cas. Co., 294 Neb. 386 (insurance-policy interpretation principles)
- Britton v. City of Crawford, 282 Neb. 374 (battery characterized as intentional tort)
- Austin v. State Farm Mut. Auto. Ins. Co., 261 Neb. 697 (intentional acts are not accidents)
