Indiana Supreme Court Rules on Insurance Coverage

A divided Indiana Supreme Court looked to the Articles of Incorporation of the Indiana Youth Soccer (“IYSA”) to find that no insurance coverage was owed when one of its member teams, the Carmel Commotion, was involved in an automobile accident during an out-of-state trip. Youth soccer players were injured in the accident when the team was going to a “team building” white-water rafting trip while in Colorado for a tournament.

In Haag v. Castro, three justices on the Indiana Supreme Court interpreted the IYSA’s bylaws to mean that the IYSA was “in the business of” (i) promoting, (ii) regulating, and (iii) conducting, but not in competing. Since the Carmel Commotion were traveling in conjunction with competing in a tournament when they were involved in an automobile accident, the Court held that the IYSA’s commercial lines policy did not apply.

Justice David did not participate in this decision. Justice Dickson dissented disagreeing with the majority’s “narrow characterization of the ‘business’ of the IYSA” and arguing that the insurance contract was ambiguous.

Haag serves as a warning to all sports and other youth-related organizations to double-check their existing bylaws and insurance policies to ensure that there are no potential gaps in coverage.

It’s funnier if you imagine John McEnroe screaming, "Are you serious? You can’t be serious! You CANNOT be serious!"

About Curtis T. Jones

Curtis Jones (CUJO) is a Partner in the Appellate, Litigation and Insurance Groups at Bose McKinney & Evans LLP (BME). ~Before joining BME, I served for two years as a judicial law clerk for the Honorable Theodore (Ted) R. Boehm in the Supreme Court of Indiana. Since 2006, I have worked extensively on a number of complex business and commercial litigation matters and have handled numerous appeals in the Indiana Appellate Courts and Seventh Circuit. I have also assisted insurers, wholesalers, agents, brokers and insureds in the insurance industry analyze, litigate and/or resolve coverage issues.~ For more information about Curtis T. Jones:
This entry was posted in Appeals Attorneys, Appellate Court Indiana, Appellate Judge, Coverage Disputes, Indiana Courts, Insurance, Insurance Appeals and tagged , , . Bookmark the permalink.

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s