INSURER OBLIGATED TO DEFEND ATTACK

Farm Liability	Intentional Injury
Duty to Defend	Eight corners rule

The estate of Margaret Sundby filed a lawsuit due to her death at the hands of Stephen Seffel. Sundby was, in the space a few days, knocked down twice by fellow nursing home resident Stephen Seffel. Sundby died from injuries within a couple of weeks after the second assault. Sundby’s estate sued Seffel.

Seffel was placed in the nursing home due to a diagnosis of dementia. Seffel was under the guardianship of Charles Appleby and was insured by Hochheim Prairie Casualty under a Farm Liability Policy when Seffel was sued by Sundby’s family.

After Hochheim denied it having any obligation to handle the lawsuit, both the insurer and Seffel’s estate moved for declaratory judgment. Hochheim appealed after the trial court ruled in favor of Appleby (on behalf of Seffel’s Estate).

In the appeal, Hochheim argued that it was improper that the lower court took consideration of an affidavit supplied by a neurologist hired by Seffel. The affidavit concluded that Seffel’s dementia precluded him from the ability to form intent with regard to his attacks on Sundby. The insurer also argued that, as the loss involved assault (an intentional tort), it had no obligation to respond to the suit, including having no obligation to defend against it.

The higher court focused its examination on the eight corners rule, consisting of the relevancy on the four corners of the applicable insurance policy and the four corners of the pleadings made by a third party. In other words, whether coverage exists within the meaning of the policy and within the allegations made within the pleadings. The court held that the affidavit qualified as extrinsic evidence and should not have been considered by the lower court. However, it also ruled that Hochheim’s treatment of the incident strictly as an assault was in error. Rather, the proper view was to examine the incident involving unintended injuries, therefore meriting consideration as an accident.

The higher court affirmed the lower court finding in favor of Appleby (on behalf of Seffel’s estate).

Hochheim Prairie Casualty Insurance Company, appellant, v. Charles Appleby, as Executor of the Estate of Stephen D. Seffel, Deceased Appellee. No. 04-07-00028-CV. CTAPP of Texas, San Antonio Filed January 16, 2008. Affirmed. Westlaw, 255 S.W. 3d 146.