Derderian v. Essex Insurance
44 A.3d 122
| R.I. | 2012Background
- Station nightclub fire in West Warwick, Feb. 20, 2003; 100 deaths; foam installed by the Derderians, not flame‑resistant as required by law at the time.
- Criminal indictments against the Derderians alleged involuntary manslaughter and related counts for criminal negligence causing death.
- Essex issued a policy to Michael Derderian (the Station, c/o Michael Derderian) covering 2002–2003 and promising defense for covered claims.
- Policy defined 'occurrence,' 'bodily injury,' and 'suit' (civil proceedings) and cited that no coverage exists where not applicable; combined endorsement stated there is no duty to defend where there is no coverage.
- Derderians sought defense under G.L.1956 § 12-28-5, Essex refused, proceedings for declaratory judgment ensued, trial court granted summary judgment for Essex, appellate review affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 'suit' includes criminal prosecutions under policy terms. | Derderians contend § 12-28-5 converts criminal prosecutions into civil suits triggering defense. | Essex argues policy defines 'suit' as civil proceedings only; statute does not rewrite contract. | Policy language controls; 'suit' is civil, so no defense duty for criminal prosecutions. |
| Whether § 12-28-5 creates a defense duty in criminal prosecutions notwithstanding the policy’s 'civil only' scope. | § 12-28-5 could convert a criminal judgment into a civil liability, implying coverage. | Statute is victim‑oriented and procedural; does not transform criminal actions into covered civil suits. | § 12-28-5 does not obligate Essex to defend criminal proceedings under the policy. |
Key Cases Cited
- Peerless Ins. Co. v. Viegas, 667 A.2d 785 (R.I. 1995) (pleadings test for duty to defend applies)
- Beals, 103 R.I. 623 (1968) (pleadings test and duty to defend framework)
- Seddon v. Bonner, 755 A.2d 823 (R.I. 2000) (§ 12-28-5 relied on as procedural mechanism for victims' rights)
- Hoyle v. Utica Mut. Ins. Co., No. cited in opinion (Idaho 2002) (criminal restitution not a civil suit for damages)
- Spiegel v. State Farm Fire and Casualty Co., 277 Ill.App.3d 340 (Ill. App. 1995) (criminal case does not seek damages under policy)
- Shelter Mut. Ins. Co. v. Bailey, 160 Ill.App.3d 146 (Ill. App. 1987) (criminal complaint not damages; civil action concept)