469_C279

Homeowner

Controlled Substance

DAMAGES SOUGHT IN DEATH FROM ILLEGAL DRUG

In May 2002, Janice Aeschlimann filed a complaint against Robert Long and others seeking damages related to the death of her daughter, Sara. The complaint alleged that someone put a methamphetamine drug in Sara's drink, causing a toxic overdose. Long was accused of "knowingly participat[ing] in the chain of distribution" of the drug that was eventually ingested by Sara. At the time of Sara's death, Westfield National Insurance Company insured Long under a homeowners policy, and Westfield Insurance Company insured him under a personal umbrella policy. Long tendered the suit to Westfield National and Westfield for defense and indemnification. Both policies contained the following exclusion:

 

"We do not provide coverage for: Bodily injury...arising out of the use, sale, manufacture, delivery, transfer or possession by any person of a Controlled Substance(s) as defined by the Federal Food and Drug Law."

 

Citing this exclusion, Westfield National and Westfield sought a declaration that they were relieved from their duty to defend or indemnify Long. The trial court found in favor of the insurers, stating that the allegations in the Aeschlimann complaint "fall squarely" within the language of the exclusion.

Long appealed, arguing that the drug exclusion in the policies was inapplicable because the complaint did not directly link him to the act that caused Sara's death. The Illinois Court of Appeals was unconvinced, citing earlier case law that found an insurer has no duty to defend its insured "if the underlying complaint alleges facts that, if true, would exempt the insured from coverage." The court found it was clear that Sara's death arose out of the sale, delivery, transfer, or possession of methamphetamine. The only activity alleged against Long was his distribution of an illegal drug. Therefore, the exclusion applied, and the insurers were not obligated to defend or indemnify. The decision of the lower court was affirmed.

Westfield National Insurance Company vs. Long-No. 2-03-0556-Appellate Court of Illinois, Second District-June 10, 2004-811 North Eastern Reporter 2d 776