38 N.E.3d 981
Ind.2015Background
- CNA (Continental Casualty and Twin City) moved for summary judgment on selected defenses, seeking judgment denying Anthem’s claims (declaratory relief, breach, bad faith, punitive damages).
- CNA’s motion and brief specified it was moving on only some defenses and explicitly reserved other affirmative defenses pending discovery.
- The trial court granted CNA summary judgment on the issues CNA raised and entered final judgment; Twin City was later joined in that judgment. Anthem appealed.
- The Court of Appeals affirmed on the ground that the claims did not arise "solely" from Anthem’s professional services handling. Anthem appealed to the Indiana Supreme Court.
- On appeal, this Court reversed in part and entered summary judgment for Anthem on issues the Court decided, but CNA petitioned for rehearing arguing the Court exceeded Trial Rule 56(B) by granting relief to Anthem on issues not raised by CNA’s motion.
- The Indiana Supreme Court granted rehearing, limited its ruling to the issues raised in CNA’s motion, and modified its opinion accordingly.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the appellate court could grant summary judgment for Anthem on issues not raised by CNA’s summary judgment motion | Anthem argued it was entitled to summary judgment on Counts II and III and CNA waived unasserted defenses | CNA argued it only moved on certain defenses and reserved others; Trial Rule 56(B) limits relief to issues raised by the motion | Court held Rule 56(B) limits granting summary judgment for a non-moving party to issues raised by the movant; CNA did not waive reserved defenses |
| Whether CNA waived unasserted affirmative defenses by not raising them in its motion for summary judgment | Anthem contended CNA failed to assert defenses and thus waived them | CNA argued it reserved additional defenses and, as the movant, had no duty to present all defenses | Court held waiver doctrine inapplicable because CNA, as movant, defined issues raised and reserved other defenses; failure to assert them did not waive them |
| Whether the operative policy language covers Anthem’s settlement losses (arising "solely" from professional services) | Anthem argued losses arose solely from professional services and are covered | CNA argued exclusions and that losses did not arise solely from professional services; CNA moved on that ground | Court held Anthem’s losses resulted solely from professional services and fall within Coverage II for the issues addressed in CNA’s motion |
| Scope of appellate modification after rehearing — whether opinion must be limited to issues raised in summary judgment proceedings | CNA argued the original opinion exceeded Rule 56(B) by granting relief beyond CNA’s motion | Anthem argued CNA waived objections and judgment on counts was proper | Court modified its opinion to limit relief to issues raised in CNA’s summary judgment motion and decided in the opinion |
Key Cases Cited
- Reiswerg v. Statom, 926 N.E.2d 26 (Ind. 2010) (waiver of affirmative defenses at summary judgment depends on whether movant placed the issue in controversy)
- Jarboe v. Landmark Cmty. Newspapers, Inc., 644 N.E.2d 118 (Ind. 1994) (discusses allocation of burden when a party moves for summary judgment)
- Well-Point, Inc. v. Nat’l Union Fire Ins. Co. of Pittsburgh, Pa., 989 N.E.2d 845 (Ind. Ct. App. 2013) (Court of Appeals decision affirming no coverage because claims did not arise solely from claims-handling activities)