Two units of Tokio Marine Holdings Inc. have convincingly denied litigation filed by a school district resulting from an accident in which a 78-year-old man became a paraplegic after a fall.
The man participated in a 2014 football game in which his grandson participated, which was held on a field owned by Oak Park Unified School District property, when he tried to retrieve a football with the intention of kicking it back on the football field, according to the complaint in Oak Park Unified School District; Ventura County Schools Self-Funding Authority Vs. Philadelphia Insurance Cos. et al.
But he failed in his attempt, tumbled down a nearby slope and broke his neck, leaving him a four-helper, according to
Although the disputes filed by the victim were resolved for an unused amount, a dispute developed between Oak Park, California-based school district and Camarillo, California-based Ventura County Schools self-financing with Tokyo Marine units to cover defense costs. The plaintiff claimed $ 1
The plaintiffs accused the insurance entities of violating the agreement and violating the implied good faith agreement in the lawsuit filed with the U.S. District Court in Pasadena.
The district court ruled in favor of the insurers and was confirmed by a three-judge appeal panel in the decision submitted on Tuesday.
Oak Park claimed that the district court erred in relying on a design error that was ruled out in two previous cases, the panel's decision said. "Under well-established California law, a court's subsequent analysis of a policy exclusion can serve as evidence that an insurance company acted reasonably when it interpreted the policy in the same way," it said.
The decision also states that “Oak Park also claims that Philadelphia conducted an inadequate investigation before denying coverage.
"But Oak Park does not cite any authority that suggests that when an insurance company denies coverage based on a reasonable interpretation of a policy exclusion, the insurer may still be liable for bad faith because it did not conduct an adequate investigation," the panel said. .
Lawyers in the case did not respond to a request for comment.
In March, a federal appeals court upheld a lower court ruling against a Tokyo Marine unit in disputes with a Brooklyn school.