Mid-Century Insurance Company v. Nichols
4:12-cv-00235
E.D. Mo.Jan 11, 2013Background
- Mid-Century and Farmers seek declaratory judgment that Nichols’ policies do not cover the February 25, 2006 Bobcat incident in St. Louis.
- DeClue sues Nichols in state court for injuries; underlying case stayed pending this federal action.
- The Bobcat 2100S was rented, unregistered, not license-plateed, and designed for off-road recreational use, not highway use.
- Bobcat was hauled on a trailer to Mardi Gras; it lacked highway licensing and registration; it was not a private passenger car, utility car, or utility trailer under Farmers’ policies.
- Farmers argues its policies exclude coverage for off-road vehicles and punitive damages; Nichols concedes Mid-Century coverage but not Farmers.
- Court applies Missouri law and grants Farmers’ and Mid-Century’s summary judgment, finding no duty to defend or indemnify Nichols.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Farmers’ policies provide coverage for the Bobcat incident | Farmers contends Bobcat not a covered vehicle | Nichols concedes no dispute on policy language | Farmers’ policies exclude coverage |
| Whether Farmers owes defense/indemnity for punitive damages | Punitive damages excluded by policy | No challenge to language; dispute is coverage | No duty to defend or indemnify for punitive damages |
| What governing law applies and the standard for summary judgment | Diversity jurisdiction; Missouri law applies | Not disputed beyond policy interpretation | Missouri law applied; standard: no genuine issue of material fact |
Key Cases Cited
- Meeks v. Berkbuegler, 632 S.W.2d 24 (Mo. Ct. App. 1982) (no coverage for off-road vehicles under similar policy language)
- State ex rel. Toastmaster, Inc. v. Mummert, 857 S.W.2d 869 (Mo. Ct. App. 1993) (equipment designed for use mainly off public roads not covered)
- Risher v. Farmers Ins. Co., 200 S.W.3d 84 (Mo. Ct. App. 2006) (definition of motor vehicle excludes off-road equipment)
- Shaffner v. Farmers Mut. Fire Ins. Co. of St. Clair County, 859 S.W.2d 902 (Mo. Ct. App. 1993) (unambiguous policy terms control; strict construction of exclusions)