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Commercial Property |
Finding As A Matter Of Law
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Declarations |
Factual Issue |
RMJ Enterprises (RMJ) owned
several properties in Indianapolis, Indiana, including a two-story building
located at 735 East Harrison Street. In 1995, Rural Insurance Agency (Rural) submitted
an application to Surplus Insurance Brokers Agency, Inc. (Surplus), the general
agent for Scottsdale Insurance Company (Scottsdale), requesting coverage on
several of RMJ's properties, including the Harrison Street property. Scottsdale
issued a one-year policy effective August 17, 1995 and RMJ paid the $3,300
premium. The supplemental declarations described the "location,
construction and occupancy" of the premises as "On the approved roof,
frame building, occupied as a vacant building, 1 Apartment, located at 735 E.
Harrison, Indianapolis, IN 46204." The building was insured for $135,000.
For several years, Rural
requested renewal of the policy for RMJ. In August 1996, a renewal certificate
was issued for another year in exchange for a premium of $3,300. In 1997,
another one-year renewal certificate was issued. This time the premium was
$2,200, and the supplemental declarations described the "location,
construction and occupancy" of the premises as "On the approved roof,
frame building, owner occupied as [an] office and upstairs apartment, located
at: 735 E. Harrison, Indianapolis, IN 46204." Coverage remained at
$135,000. In 1998, Rural requested renewal of the policy, with "no
changes." In exchange for a $2,250 premium, Scottsdale issued a policy
with a supplemental declarations that described the coverage in two separate
tables. The first table described the coverage as "on approved roof, frame
bldg., owner occupied as office" with an insurance limit of $135,000. The
second table described the coverage as "upstairs apartment" with an
insurance limit of $135,000. A separate page contained a schedule of locations,
listing 15 different properties covered under the policy. The
"office" and "apartment 2nd floor" were listed separately,
but they were both listed as "Prem. No. 1." In 1999, a final one-year
renewal certificate for the policy was issued in exchange for a premium of
$2,250. The effective date of this certificate was August 12, 1999.
On October 6, 1999, a fire
damaged the Harrison Street property. Damages exceeded $135,000. Scottsdale
paid RMJ $135,000 plus $9,360 for debris removal. Referring to the language in
the two tables in the supplemental declarations issued in 1998, RMJ argued the limit
was $270,000. Scottsdale disagreed. RMJ eventually filed suit against
Scottsdale. During the proceedings, Scottsdale submitted a copy of the 1998
supplemental declarations. This copy revealed a handwritten line drawn through
the "upstairs apartment" table. The words "& apt." were
handwritten after "on approved roof, frame bldg., owner occupied as
office." Neither party provided evidence as to when the revisions to the
page were made.
The lower court found as a
matter of law that the policy limit was $135,000, in favor of Scottsdale. RMJ
appealed.
On appeal, the only issue
was whether the limit of coverage was $135,000 or $270,000. In reaching its
decision, the Indiana Court of Appeals noted that a copy of the policy was not
attached to RMJ's original complaint. As a result, the court was forced to use
the supplemental declarations that Scottsdale submitted in the earlier
proceedings. Because neither party provided evidence as to whether the policy
was issued with or without the handwritten revisions, there was a factual issue
to be resolved. The court reversed the trial court's decision in favor of
Scottsdale and remanded it to the trial court.
RMJ Enterprises, Inc. v.
Scottsdale Insurance Company-No. 49A02-0309-CV-796-Court of Appeals of
Indiana-May 17, 2004-808 North Eastern Reporter 2d 159