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Court Finds Insurer Did Not Act in Bad Faith in Denying Coverage for Claim of Negligent Entrustment Against Excluded Driver’s Parents

June 7, 2013

Fred Valz obtained a grant of summary judgment for their insurer client on the issue of whether the insurer acted in bad faith in denying coverage for a negligent entrustment claim filed against the parents of an excluded driver. The policy excluded coverage for “any claim” arising from an accident involving a vehicle operated by the excluded driver, including any claim for vicarious liability.

The plaintiff claimed the exclusion was ambiguous because the “any claim” language was limited only to vicarious liability claims as a result of the language immediately following it. The United States District Court for the Middle District of Georgia disagreed, finding the exclusion was not ambiguous. The “including” language did not limit the “any claim” provision, but merely provided an example of one type of claim—of many—that would not be covered if an excluded driver was operating the vehicle.

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For informational purposes only. Past success does not indicate the likelihood of success in future cases.