City of Lincoln v. County of Lancaster
297 Neb. 256
| Neb. | 2017Background
- A Lancaster County deputy intentionally made physical contact with a Lincoln police officer, injuring the officer’s shoulder (post-surgery) and prompting the City to pay ~$63,418 in workers’ compensation.
- The County had a retained-limits liability policy: $250,000 retained limit per occurrence and $4,750,000 policy limit; insurer pays only amounts in excess of the retained limit.
- The City sued the County seeking reimbursement; the County asserted sovereign immunity under the Political Subdivisions Tort Claims Act (the Act) and that the Act’s intentional-torts exception (battery) applied.
- The district court granted summary judgment for the County, holding (1) the claim arose from a battery and was barred by the Act’s intentional-torts exception, and (2) the County’s purchase of liability insurance did not waive immunity for claims under the retained limit.
- On appeal, the Nebraska Supreme Court affirmed but on a different ground: the County’s policy covered only “occurrences” (accidental happenings), and an intentional battery is not an “occurrence,” so the policy provided no coverage and thus could not effect a waiver of sovereign immunity.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the claim is barred by the Act’s intentional-torts exception | The contact was not a battery (implied: or not enough to invoke the exception) | The contact was intentional and therefore a battery exempting the claim from the Act | Held: The contact was intentional and the claim arose from a battery; intentional-torts exception applies |
| Whether County waived sovereign immunity by purchasing liability insurance under § 13-916 | Insurance purchase waived immunity for the City’s claim despite retained limit | Policy covers only occurrences; intentional battery is not covered, so no waiver | Held: No waiver — policy covers only accidental "occurrences" and battery is intentional, so insurance did not cover the claim |
| Whether a retained/self-insured limit prevents waiver for amounts below that retention | City argued waiver should apply regardless (or did not contest below) | County argued retained limit preserves immunity for amounts under retention | Not decided as a controlling issue — unnecessary to resolve because policy provided no coverage for battery |
| Proper standard of review for policy interpretation and summary judgment | N/A (procedural) | N/A (procedural) | Held: De novo review applies to statutory and insurance-policy interpretation; summary judgment standard affirmed |
Key Cases Cited
- Kimminau v. City of Hastings, 291 Neb. 133 (discusses intentional-torts immunity under the Act)
- Drake-Williams Steel v. Continental Cas. Co., 294 Neb. 386 (principles for construing insurance policy language)
- Britton v. City of Crawford, 282 Neb. 374 (battery as an intentional tort; exclusion from "occurrence")
- Austin v. State Farm Mut. Auto. Ins. Co., 261 Neb. 697 (intentional acts are not accidents for coverage purposes)
- Blaser v. County of Madison, 288 Neb. 306 (§ 13-916 effect — waiver tied to policy terms)
- Farr v. Designer Phosphate & Premix Internat., 253 Neb. 201 (discussion distinguishing accidents from intentional conduct)
- Anderson v. Union Pacific RR. Co., 295 Neb. 785 (appellate courts need not decide unnecessary issues)
