U.S. District Court, WDNY
U.S. Specialty Insurance Company v. Lebeau Inc., et al.
Background: During an airshow, a pedestrian was struck and seriously injured by a motor vehicle operated by a third party. The injured party filed a complaint alleging the recklessness and negligence of County of Monroe for failing to control motor vehicle traffic. The defendant was required to obtain insurance naming the County and Airport Authority to protect against claims of bodily injury, death etc. The defendant procured insurance through the plaintiff, but the plaintiff denied coverage for the injured party due to an auto exclusion contained in the policy. The plaintiff commenced a declaratory judgment seeking a declaration that it is not required to cover the injured party’s injuries because they were sustained outside of the “covered premises” and because of the auto exclusion. The plaintiff moved for summary judgment on the issue of the auto exclusion.
Ruling: The court granted the plaintiff’s motion for summary judgment and denied the defendants’ cross-motion. The defendants had argued that the auto exclusion was ambiguous. The court found that the language covering automobiles used “by the insureds” to be clear. Automobiles used by third parties were not covered by the policy.
Frederick P Alimonti and Jeremy I Hager of the Alimonti Law Offices PC and Reed N. Summers of Sutter, Summers & Lydon for the plaintiff; Samuel H. Caruso Jr. of Kaman, Berlove, Marafioti, Jacobstein & Goldman for the defendant Lebeau; Brian Edward
Marianetti and Howard A. Stark of the Monroe County Department of Law for the defendants Monroe County, et al.