No Coverage for Fraudulent Insurance Claim: Staged Collision not an Accident.

• Author: Zalma, Barry

* Those who attempt insurance fraud and are caught will often attempt to disappear rather than litigate to recover for a claim an insurer can prove is fraudulent. Others will sue and attempt to force the insurer into a settlement rather than pay defense costs.

In Progressive Northwestern Insurance Co. v. Derrick Burnett, et al., Case No.: 2:18-cv-04243-NKL, United States District Court Western District of Missouri Central Division (August 27, 2019) Progressive Northwestern Insurance Co.'s moved for summary judgment against defendants Travis Bush and Laquent Palmer.

FACTS

The case arose out of a vehicle collision that occurred at approximately 11:36 p.m. on July 14, 2018 in Columbia, Missouri involving Defendants Derrick Burnett, Jeanette Allen, Lorell Lawhorn, Courtney Lawhorn, Javion Lawhorn, Travis Bush, Laquent Palmer and Dakota Fogle. Plaintiff Progressive Northwestern Insurance Company sought a declaratory judgment regarding any duty it has to indemnity and defend under the liability provisions of its insurance policy with Allen.

DISCUSSION

On motion, a court must grant summary judgment when the "movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law."

Typically, the moving party submits a statement of facts that support judgment in the movant's favor, and any opposing party responds by admitting or denying those facts. Local Rule 56.1 additionally provides that "[u]nless specifically controverted by the opposing party, all facts set forth in the statement of the movant are deemed admitted for the purpose of summary judgment."

Neither Mr. Bush nor Mr. Palmer responded to or contested Progressive's statement of facts or filed opposition of any kind to Progressive's motion. Thus, all admissible facts asserted by Progressive were deemed admitted by Defendants, and the Court adopted the Statement of Uncontroverted Material facts submitted by Progressive.

The Uncontroverted facts established that Progressive is entitled to judgment as a matter of law. The Progressive Policy only affords liability coverage for injury or damage resulting from an "accident" and specifically excludes coverage for damage or injury resulting from intentional or criminal acts, including fraud or misrepresentation, and requires persons seeking coverage to fully cooperate with Progressive during its investigation.

The uncontested evidence submitted by Progressive showed that the July 14, 2018...