 |
 |
to fill out a simple form to connect to Employee Leasing Services in your area.
|
|
|
|
|
Metal Exchange Corp. v. J. W. Terrill10/18/2005
Opinion Vote: REVERSED AND REMANDED.
Baker, P.J., and Sullivan, J., concur.
Opinion:
Metal Exchange Corporation (Metal Exchange) and Continental Aluminum Corporation (Continental Aluminum) (collectively referred to as Metal Exchange) brought this action against J.W. Terrill (Terrill), alleging claims of negligence, breach of contract, and breach of fiduciary duty regarding the procurement of insurance policies. Terrill filed a motion for summary judgment. The motion was granted and judgment was entered in favor of Terrill on all counts. Metal Exchange appeals from the grant of summary judgment in favor of Terrill. Metal Exchange argues the trial court erred in granting summary judgment in favor of Terrill because (1) collateral estoppel did not bar Metal Exchange's claims, and (2) a genuine issue of material fact exists with respect to the existence of a contract between the parties for Terrill to provide seamless insurance coverage for Metal Exchange. We reverse and remand.
Metal Exchange and Continental Aluminum are sister corporations engaged in the business of recycling metal. Terrill is an insurance brokerage firm that, among other things, undertakes risk identification and exposure analysis, prepares insurance programs, implements insurance programs and procures insurance for other companies. Metal Exchange is based in St. Louis County and Continental Aluminum is based in Michigan. Metal Exchange alleges that in 1986 it entered into an agreement with Terrill for Terrill to act as an insurance consultant on a fee and commission basis. Metal Exchange allegedly accepted Terrill's proposals and paid the agreed amount of $50,000 for Terrill "to handle the placement of insurance needs."
Terrill procured insurance for Metal Exchange's operations in Michigan. These policies included a Workers' Compensation and Employers Liability Policy issued by Travelers Insurance Company (WC/EL Policy) and a Catastrophic Umbrella Policy also issued by Travelers Insurance Company (CUP Policy). In addition, Terrill obtained an Excess Liability Policy through The Home Insurance Company.
The WC/EL Policy and the CUP Policy contained exclusionary language for intentional acts. The WC/EL Policy contained the following exclusion: "This insurance does not cover bodily injury intentionally caused or aggravated by you."
The CUP Policy excluded coverage for bodily injury "expected or intended from the standpoint of the insured." The Excess Policy issued by Home Insurance is not at issue in this appeal.
In the underlying claim, Stanislaw Golec (Golec), Metal Exchange's employee, while working as a furnace loader in Michigan, was severely burned when an explosion covered him in molten aluminum. Golec sued Metal Exchange in Michigan state court under the intentional tort exception to the Michigan Workers' Disability Compensation Act (Michigan Compensation Act). Travelers Insurance Company (Travelers) undertook defense of the case filed by Golec in Michigan. The Michigan trial court granted summary judgment in favor of Metal Exchange finding that Golec's exclusive remedy was under the Michigan Compensation Act.
Golec appealed to the Michigan Court of Appeals, which reversed the trial court's decision. The Michigan Court of Appeals found that Golec sufficiently established Metal Exchange had actual knowledge of a specific danger--an explosion of molten aluminum--that was certain to result in an injury to Golec. The Michigan Court of Appeals further reasoned that Metal Exchange willfully disregarded that knowledge by requiring Golec to work under the same conditions that produced his earlier minor injury. At this point, Travel
Page 1 2 3 4 5 6 7 Missouri Employee Leasing Services
Employee Leasing Services
|
| |
to fill out a simple form to connect to Employee Leasing Services in your area.
|
|