Justia Montana Supreme Court Opinion Summaries

Central United Life Insurance Co. (CULI) purchased Judith Gleason’s cancer benefit insurance policy prior to Gleason’s death from breast cancer. Gleason’s Estate submitted notice of potential claims under the policy to CULI. CULI paid certain claims but denied payment for claims submitted outside the policy limit. The Estate contested the denial of the untimely-filed claims. The district court granted partial summary judgment for the Estate, ruling that CULI owed payment for the untimely-filed claims, provided it was not prejudiced by the late notice. After a trial, the jury found that CULI had violated the Montana Unfair Trade Practices Act (UTPA) but did not award damages and therefore did not consider whether CULI acted with malice. The Supreme Court affirmed in part, reversed in part, and remanded, holding (1) the district court correctly applied the notice-prejudice rule; and (2) when an insurer is found to have violated the UTPA, a jury is not required to find compensatory damages beyond those for breach of the insurance contract before considering malice and punitive damages under the UTPA, and therefore, a new trial must be held on the issue of malice and punitive damages. View "Estate of Gleason v. Cent. United Life Ins. Co." on Justia Law

Plaintiff, a Montana corporation, sells workers’ compensation insurance to employers without the use of insurance agencies. Defendant Montana State Fund sells workers’ compensation insurance through in-house and out-of-house agents. The remaining defendants also sell workers’ compensation insurance, including State Fund policies. In 2011, Plaintiff brought this of action against Defendants, alleging violations of the Unfair Trade Practices Act (UTPA) and intentional interference with prospective economic advantage. The district court (1) dismissed Plaintiff’s UTPA claim on the grounds that the UTPA does not create a private right of action by one insurance company against another; and (2) granted Defendants’ motions for summary judgment with respect to interference with prospective economic advantage. The Supreme Court affirmed, holding that Plaintiff’s inability to establish damages was fatal to its intentional interference claim and would be fatal as well to any UTPA-related claim. View "Victory Ins. Co. v. Mont. State Fund" on Justia Law

This action involved a dispute arising from the construction of a large house. Interstate Mechanical, Inc. initiated an arbitration action to recover payments it claimed as a result of its work on the house project. Abbey/Land LLC and Glacier Construction Partners LLC (collectively, Plaintiffs) then filed suit against Interstate in Montana District Court in Flathead County. Thereafter, Glacier asserted counterclaims in the Interstate arbitration proceeding and obtained a positive arbitration award against Interstate. Abbey/Land subsequently filed an amended complaint dismissing Glacier as a plaintiff and naming it as a defendant. Glacier tendered the Abbey/Land claims to its insurer, James River Insurance Company. James River refused to provide defense or indemnity. Glacier and Abbey/Land settled the Flathead County action as between themselves. James River moved to intervene in the Flathead County action to challenge the reasonableness of the confessed judgment against Glacier. Meanwhile, Abbey/Land and Glacier entered settlements with all other parties. The district court never ruled on James River’s motion to intervene and entered final judgment against Glacier. The Supreme Court reversed, holding that the district court erred in entering judgment without considering either its motion to intervene or the reasonableness of the confessed judgment. View "Abbey/Land LLC v. Interstate Mechanical, Inc." on Justia Law

Fire Insurance Exchange (FIE) insured Defendant’s home in Clancy, Montana. When Defendant’s home was broken into and robbed, Defendant made a claim under her homeowner’s policy. FIE paid Defendant $22,602, representing property damage and actual cash value for the items Defendant claimed were stolen from the home. Defendant then submitted a supplemental claim in the amount of $23,102 for personal property she asserted she had replaced. When FIE concluded that the receipts Defendant provided to substantiate her replacement claims were fraudulent, FIE made a referral for criminal charges. Defendant subsequently pleaded guilty to felony insurance fraud and theft. The district court ordered Defendant to pay restitution to FIE in the amount of $22,602. The Supreme Court affirmed, holding that the district court did not err when it ordered Defendant to pay restitution to FIE even where Defendant’s initial claim was legitimate because Defendant’s subsequent fraudulent replacement value claim voided her policy, and FIE suffered a pecuniary loss in the amount of Defendant’s initial claim. View "State v. Henderson" on Justia Law

Don O’Mailia was hired by to install a water heater on the premises of a newly-constructed Famous Dave’s barbecue restaurant. At the time, O’Mailia was covered by a commercial general liability policy issued by Truck Insurance Exchange (TIE). Three years after the water heater was installed, the restaurant’s opening manager noticed a burning smell in the mechanical room. Diamond Plumbing & Heating (Diamond) was called to examine the water heater. A fire subsequently broke out in the restaurant. Famous Dave’s sued Diamond. Diamond sought indemnification from O’Mailia, alleging that the fire was caused by defective installation. O’Mailia asked TIE to provide a defense against the suit. TIE filed a petition for declaratory relief asking the district court to declare that O’Mailia’s policy offered no coverage for claims arising from the fire. The district court granted summary judgment for TIE, concluding that no property damage occurred during the policy period, and therefore, there was no coverage under the policy. The Supreme Court affirmed, holding that O’Mailia’s TIE policy was inapplicable to the present claims resulting from the Famous Dave’s fire. View "Truck Ins. Exch. v. O’Mailia" on Justia Law

During a highway paving project a storm caused recently applied primer to emulsify in rainwater. The oil splashed onto passing vehicles, causing damage. The vehicle owners brought claims against the State, which the State paid. A.M. Welles, Inc. (Welles), the general contractor on the job, reimbursed the State for what it paid to the vehicle owners. The State then sued Liberty Mutual Fire Insurance Co. (Liberty), the insurer for the job, seeking indemnification for the costs that Welles did not cover. Welles, in turn, sued the subcontractors for the project, Montana Materials, Inc., RSJ, Inc., and GLJ, Inc. (collectively, “Jensen”), seeking indemnification under the subcontract. The district court granted summary judgment for Jensen on Welles’s indemnification claim and dismissed the State’s action against Liberty for failure to prosecute. The Supreme Court vacated and remanded, holding that the district court (1) erred in denying Welles’s motion for summary judgment, as Welles was entitled to indemnification under the subcontract; and (2) abused its discretion by dismissing the State’s action against Liberty for failure to prosecute. Remanded. View "A.M. Welles, Inc. v. Mont. Materials, Inc." on Justia Law

Edwin Moreau worked at the W.R. Grace mine from 1963 until 1992. Edwin died of asbestos-related lung cancer in 2009. In 2013, Transportation Insurance, W.R. Grace’s workers’ compensation insurance carrier, accepted liability for Edwin’s medical expenses. Both the Libby Medical Plan, an entity established and funded by W.R. Grace to pay the medical care expenses of employees who were injured by asbestos exposure, and W.R. Grace refused to accept reimbursement from Transportation for the medical expenses the Plan had paid on Edwin’s behalf. Cristita Moreau, as personal representative of Edwin’s estate, demanded that the amount of reimbursement declined by the Plan and W.R. Grace should be paid either to Edwin’s Estate or to a charity selected by the Estate. After Transportation refused to pay the money, Moreau filed this petition to the Workers’ Compensation Court (WCC) to resolve the dispute. The WCC denied the petition, determining that it lacked jurisdiction to hear the matter because Moreau lacked standing. The Supreme Court reversed, holding that the Estate had standing and was entitled to have its petition determined on the merits. Remanded. View "Moreau v. Transp. Ins. Co." on Justia Law

In 1999, Randall Simms was injured while on the job. Thereafter, Simms became totally disabled and, since 2006, had been receiving total disability benefits. Dr. Michael Schabacker was Simms’ workers’ compensation doctor from 2004 through 2007. In 2010, Simms filed a complaint against Schabacker and his employer, alleging that Schabacker had unlawfully disseminated his private, confidential healthcare information to a law enforcement officer without Simms' permission. The district court granted summary judgment in favor of Schabacker. The Supreme Court affirmed, holding that the district court did not err in concluding (1) Schabacker was statutorily authorized to release relevant healthcare information regarding Simms to the workers’ compensation insurer, and (2) Schabacker did not knowingly assist a law enforcement agency when he discussed Simms’ medical condition with the workers’ compensation insurer. View "Simms v. Schabacker" on Justia Law

In 2006, Robert and Teresa James brought a lot in a rural subdivision. At the time of the purchase, Chicago Title Insurance Company issued a title insurance policy that insured against loss or damage by reason of “lack of right of access to and from the land.” In 2013, the Jameses sued Chicago Title, contending that the title insurance policy required Chicago Title to provide them “legal” access to their lot. The district court granted summary judgment to Chicago Title, concluding that the Jameses failed to establish that the title insurance policy entitled them to “legal access” to their lot. The Supreme Court affirmed, holding that the district court properly granted judgment to Chicago Title on the Jameses’ claim, under the title insurance policy, that they lacked a right of access to their real property, as the language of the policy insured against loss from not having “a right” of access, and the Jameses clearly had a right of access when they bought the lot. View "James v. Chicago Title Ins. Co." on Justia Law

Calvin Stucky was injured in a motor vehicle accident. Calvin’s child, Sadee, was eighteen years old at the time of the accident. Sadee claimed damages for loss of parental services, society, or consortium, among other claims. Defendant-insurer moved for summary judgment with respect to Sadee’s loss of consortium claim, arguing that Montana law does not recognize a claim for loss of consortium by the adult child of an injured parent. The federal court, which had diversity jurisdiction, certified the matter to the Supreme Court. The Supreme Court accepted the certified questions of law and answered (1) Montana law recognizes a claim for loss of consortium by the adult child of an injured parent; and (2) to assert such a claim, the plaintiff must show that a third party tortiously caused the parent to suffer a serious, permanent, and disabling injury compensable under Montana law, and that the parent’s ultimate condition of impairment is so overwhelming and severe that it has caused the parent-child relationship to be destroyed or nearly destroyed. View "N. Pac. Ins. Co. v. Stucky" on Justia Law