Insurance Contracts Must Be Read as They are Written

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People injured in an accident where the tortfeasor’s insurer refuses to provide a defense or indemnity have two choices: (1) rely on the tortfeasor’s assets to indemnify the injured or (2) enter into an agreed judgment with the tortfeasor, agree to a covenant not to execute on the judgment and take an assignment of the tortfeasor’s rights against the insurer. 

In Donald Calvert, et al  v. Safeco, No. 20-12343, USCA The Eleventh Circuit (January 11, 2021) the plaintiffs took the second option only to have the trial court and the Eleventh Circuit to destroy the plaintiffs dreams of fortunes from litigation.

ZALMA OPINION

The Eleventh Circuit read the whole policy and found no ambiguity in the word “coverage.” Since the 2005 truck was “covered” specifically by a policy issued by First Acceptance it was specifically, clearly, and unambiguously not an “insured auto” on the Safeco Policy. There could be no question that the unambiguous language of the First Acceptance policy “covered” the 2005 truck.