414 P.3d 1194
Idaho2018Background
- Edgar and Laurie Cook owned recreational property with a cabin and campground; Michael Chisholm lived on the property performing caretaking duties.
- On June 28, 2015, Chisholm intentionally shot Joseph Stanczak twice; Chisholm pleaded guilty by Alford plea to related criminal charges.
- The Cooks were insured under a Farm Bureau homeowners policy defining "occurrence" as "an accident" resulting in bodily injury.
- Stanczak sued Chisholm and the Cooks (premises liability, negligent supervision); the Cooks tendered defense to Farm Bureau.
- Farm Bureau denied coverage and filed for declaratory judgment seeking a ruling that the shooting was not an "occurrence" and thus no duty to defend or indemnify; the district court granted summary judgment for Farm Bureau.
Issues
| Issue | Plaintiff's Argument (Farm Bureau) | Defendant's Argument (Cooks) | Held |
|---|---|---|---|
| Whether the intentional shooting is an "occurrence" (i.e., an "accident") under the policy | The shooting was an intentional act causing injury, not an "occurrence," so no coverage or duty to defend | From the insureds' standpoint, the injuries were unexpected consequences of their negligence, so the event should be an "accident/occurrence" and covered | The Court held the shooting was not an "occurrence"; Idaho law looks to the nature of the injurious event (an intentional act), so no coverage and no duty to defend |
Key Cases Cited
- Mutual of Enumclaw Ins. Co. v. Wilcox, 123 Idaho 4, 843 P.2d 154 (Idaho 1992) (analyzing "accident" and holding insured’s failure to act did not convert third party’s intentional acts into an occurrence)
- State Farm Fire & Casualty Co. v. Doe, 130 Idaho 693, 946 P.2d 1333 (Idaho 1997) (holding sexual-abuse by third party was intentional act and not an "occurrence")
- GATX Leasing Corp. v. Nat’l Union Fire Ins. Co., 64 F.3d 1112 (7th Cir. 1995) (volitional acts by third parties are not "occurrences" under applicable law)