Genesis Insurance v. City of Council Bluffs
677 F.3d 806
8th Cir.2012Background
- Genesis insured the City of Council Bluffs under two consecutive indemnity policies (2002–2003 and 2003–2004).
- Underlying civil actions (2005) alleged §1983 violations and malicious-prosecution-type injuries arising from the City's prosecutions of Harrington and McGhee for Schweer’s murder.
- Harrington and McGhee were convicted (1978) and later had convictions potentially vacated or mitigated (2003 release for Harrington; McGhee released in 2003).
- The district court granted Genesis summary judgment, holding no coverage for indemnity because injuries occurred before the Genesis policies (1977–1978).
- The City argued the policies are ambiguous and provide coverage for malicious-prosecution/ civil-rights injuries occurring during the policy periods, including pre-policy injuries.
- The Eighth Circuit affirmed, holding that under Iowa law malicious-prosecution occurs when the underlying charges are filed, and thus no coverage existed for pre-2002-2004 policy periods.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When does the tort of malicious prosecution occur for coverage? | City: occurrence includes pre-policy injuries; policies are not time-limited. | Genesis: occurrence occurs when charges are filed, not when claims arise. | Occurrence occurs when charges are filed; pre-2002 injuries not covered. |
| Are the policies ambiguous and therefore construed in City’s favor? | Policies are ambiguous and should be construed against insurer. | Policies are unambiguous; clear occurrence-based coverage. | Policies not ambiguous; clear occurrence framework applied. |
| Does the continuing-injury theory (multiple-trigger) apply to malicious-prosecution claims? | Multiple-trigger could extend coverage for continuing misconduct. | No multiple-trigger for malicious prosecution; injury arises at filing. | No multiple-trigger; injury occurs at filing. |
| Does Iowa law provide a basis to reinterpret the timing of injury under these policies? | Iowa law supports broader timing for coverage. | Iowa law supports majority view that injury occurs at filing. | Iowa law would align with majority view; filing date controls. |
| Do underlying claims in 2005 fall within the policy periods? | Claims relate to conduct during policy periods. | Injury occurred in 1977, outside policy periods. | No coverage since injury occurred before policies.$ |
Key Cases Cited
- City of Erie, Pa. v. Guar. Nat’l Ins. Co., 109 F.3d 156 (3d Cir.1997) (majority view: malicious-prosecution occurs when charges filed; not extension by timing)
- Royal Indemnity Co. v. Werner, 979 F.2d 1299 (8th Cir.1992) (tort occurs when underlying charges are filed (Missouri law applied))
- Hasbrouck v. St. Paul Fire & Marine Ins. Co., 511 N.W.2d 364 (Iowa 1993) (occurrence policy framework; timing of occurrence)
- Tacker v. Am. Family Mut. Ins. Co., 530 N.W.2d 674 (Iowa 1995) (time of occurrence is when damages are sustained)
- Cont’l Ins. Cos. v. N.E. Pharm. & Chem. Co., 811 F.2d 1180 (8th Cir.1987) (damages flow from the tortious act; occurrence concept in insurance)
- Royal Indem. Co. v. Werner, 784 F. Supp. 690 (E.D. Mo.1992) (district-level reasoning on occurrence timing for malicious-prosecution claims)
- Central Bearings Co. v. Wolverine Ins. Co., 179 N.W.2d 443 (Iowa 1970) (insurance-coverage contract interpretation principles)