Franke, Schultz & Mullen, PC | Eighth Circuit Affirms Summary Judgment for Insurer on Coverage Issues Dispelling Bad Faith Claim
Kansas City - Springfield - St. Louis - Overland Park
This links to the home page
News & Publications

Eighth Circuit Affirms Summary Judgment for Insurer on Coverage Issues Dispelling Bad Faith Claim

02/15/2013

Plaintiff, Brent Lambi, filed suit against his homeowner's insurer asserting claims of breach of contract, vexatious refusal and bad faith asserting his insurer was obligated to defend and indemnify him in an underlying tort action based upon his alleged transmission of the HIV virus to a sexual partner. Prior to filing the breach of contract and bad faith action, the insured settled the underlying tort action with the plaintiff despite the insurers refusal to defend or indemnify.  In defending against the bad faith and breach of contract claims, the action was removed to federal court wherein the United States District Court for the Western District of Missouri granted summary judgment in favor of the insurer finding that the underlying claims against the plaintiff arising out of the transmission of the HIV virus did not fall within the terms of the insuring agreement because the transmission of the HIV virus does not constitute "bodily injury" as the term is defined in the policy. The District Court additionally found the "Abuse" and "Communicable Diseases" exclusions barred coverage for the claim.  On appeal, the Eighth Circuit affirmed the trial court's judgment finding that the "Abuse" and "Communicable Diseases" exclusions plainly and unambiguously excluded coverage for the tort claims against Mr. Lambi.  The case is styled Lambi v. American Family Mutual Insurance Co., 498 Fed.Appx. 655 (8th Cir. 2013).  American Family was represented by Nikki Cannezzaro at both the trial and appellate levels.