Dirk and Lisa Morris were provided homeowners insurance coverage from Economy Fire and Casualty Ins. Co. (Economy) and that policy was in force during a disputed loss. The Morrises filed a claim alleging that they suffered a loss from a break-in to their rented mini-storage facility unit. Economy, during their continuing investigation of the loss, asked the Morrises to provide it with some additional documentation as well as to agree to an examination under oath.
The Morrises, through their attorney, asked Economy to give them copies of the previous statements they made concerning the claim. The insurer refused. The Morrisses then informed Economy that they would not be questioned under oath unless and until their previous statements were furnished. The Morrisses then filed suit, asking that the insurer be found guilty of bad faith. Economy countered their complaint, alleging breach of contract and bad faith. The insurer then requested summary judgment and the court ruled in the carrier's favor. The Morrisses appealed.
The higher court reviewed the case. The Morrisses argued that the lower court was wrong to rule that they breached their policy. In their opinion, they had not refused to cooperate with the insurer, they were only making a request prior to compliance. The higher court did not see that the policy's cooperation clause was in question. That part of the policy dealt with an insured's responsibility to cooperate with legal actions involving third parties.
The court then reviewed the Morrissess argument that Economy acted unreasonably in refusing to provide copies of their previous statements. The court focused on the policy's "Your Duties After Loss" provision. In that portion of the policy, an insured is required to provide relevant documents and participate with requests for sworn statements regarding claims. In the court's opinion, the insured's duty was spelled out and the insurer was following the contract provision. Further, the court did not recognize any obligation for the insurer to fulfill the Morrisses’ request as a condition of their examination under oath.
In light of its review, the court affirmed the lower court decision in favor of the insurer and against the Morrisses.
Dirk A. Morris and Lisa K. Bowman-Morris, Appellants v. Economy Fire and Casualty Company, St. Paul Fire and Marine Insurance Company, and Metropolitan Property and Casualty Insurance Company, Appellees. IndSupCt. No 49S02-0503-CV98. Affirmed. Filed June 6, 2006. http://www.in.gov/judiciary/opinions/pdf/06060601bd.pdf (Downloaded 10/05/06)