The Motor Vehicle Exclusion In A Homeowner's Policy Does Not Exclude Coverage For Hot Car Deaths: Hermanson V. Century Nat'l Ins. Co. (Nevada)

• Published date: 11 October 2022
• Subject Matter: Insurance, Litigation, Mediation & Arbitration, Insurance Laws and Products, Trials & Appeals & Compensation, Personal Injury
• Law Firm: Lewis Brisbois Bisgaard & Smith LLP
• Author: Ms Jill Collins

(October 2022) - On August 27, 2015, Rodney Hermanson (Hermanson) was caring for his four-year old grandson, Seth Franz (Seth). After having lunch with Seth, Hermanson returned to his home but did not realize that Seth remained in the vehicle. Several hours later, Seth's mother called to determine when Hermanson would be bringing Seth home and Hermanson realized Seth had been left in the vehicle. Hermanson attempted to save his grandson, but Seth was later pronounced dead.

Seth's father, Alan Franz (Franz), sued Hermanson. Hermanson's homeowner's insurer, Century National, conducted an investigation and denied coverage for the lawsuit, citing the fact that Seth's injuries arose out of the use of the automobile and were thereby excluded under the motor vehicle exclusion of the policy. Hermanson allowed a default judgment to be taken against him under a covenant not to execute it.

Thereafter, Hermanson sued Century National alleging causes of action for 1) breach of contract, 2) breach of the implied covenant of good faith and fair dealing, and 3) unfair claims practices (pursuant to NRS 686A.310) for its failure to defend and indemnify him in relation to the initial lawsuit. Hermanson v. Century Nat'l Ins. Co., No. 2:19-cv-00656-RFB-EJY, 2021 U.S. Dist. LEXIS 188278 (D. Nev. Sep. 30, 2021). Century National removed the case to federal court and asserted a counterclaim for declaratory relief. At the close of discovery, both parties moved for summary judgment.

The Century National policy...