Greco v. Penn National Security Insurance
721 S.E.2d 280
N.C. Ct. App.2012Background
- Greco seeks declaratory relief on Penn National policy with $1 million limit after a collision caused by a trailer detaching from a pickup.
- McKinnon and Hanson were driving a truck owned by Hanson, pulling a CHE trailer; accident injures Greco.
- Trailer detached and collided with Greco’s vehicle; Penn National insured the trailer; Nationwide insured the truck.
- Penn National moved for summary judgment arguing the insureds failed to cooperate under the policy’s cooperation clause.
- Policy requires insureds to cooperate with investigation/defense; court held evidence of non-cooperation not proven; prejudice to insurer not shown.
- Order reversed and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was there a failure to cooperate as a matter of law? | Greco | Penn National | No; summary judgment improper on cooperation issue. |
Key Cases Cited
- Henderson v. Rochester American Insurance Co., 254 N.C. 329 (N.C. 1961) (cooperation must be material and prejudicial to relieve insurer)
- MacClure v. Accident & Casualty Insurance Co. of Winterthur, Switzerland, 229 N.C. 305 (N.C. 1948) (burden of proof; evidence on motion; cooperation requires material prejudice)
- Lockwood v. Porter, 98 N.C.App. 410 (N.C. Ct. App. 1990) (unavailable insured can constitute non-cooperation if prejudice shown)
- Continental Casualty Co. v. Burton, 795 F.2d 1187 (4th Cir. 1986) (uninsured/unavailable must be willful, material; insurer must show prejudice)
- Great American Ins. Co. v. C.G. Tate Constr. Co., 303 N.C. 387 (N.C. 1981) (cooperation clauses interpreted to balance notice/investigation purpose)
- Builders Mut. Ins. Co. v. North Main Constr., Ltd., 361 N.C. 85 (N.C. 2006) (summary judgment standard for no genuine issue of material fact)