{ "id": 4176286, "name": "HUBER ENGINEERED WOODS, LLC, Plaintiff-Appellee v. CANAL INSURANCE COMPANY, Defendant-Appellant", "name_abbreviation": "Huber Engineered Woods, LLC v. Canal Insurance", "decision_date": "2010-03-16", "docket_number": "No. COA09-335", "first_page": "1", "last_page": "19", "citations": [ { "type": "official", "cite": "203 N.C. App. 1" } ], "court": { "name_abbreviation": "N.C. Ct. App.", "id": 14983, "name": "North Carolina Court of Appeals" }, "jurisdiction": { "id": 5, "name_long": "North Carolina", "name": "N.C." }, "cites_to": [ { "cite": "579 P.2d 1015", "category": "reporters:state_regional", "reporter": "P.2d", "year": 1978, "pin_cites": [ { "page": "1019", "parenthetical": "coverage and exclusion defined in terms of \"the\" insured create separate obligations to several insureds" } ], "opinion_index": 0 }, { "cite": "20 Wash. App. 261", "category": "reporters:state", "reporter": "Wash. App.", "case_ids": [ 464781 ], "year": 1978, "pin_cites": [ { "parenthetical": "coverage and exclusion defined in terms of \"the\" insured create separate obligations to several insureds" } ], "opinion_index": 0, "case_paths": [ "/wash-app/20/0261-01" ] }, { "cite": "635 S.E.2d 501", "category": "reporters:state_regional", "reporter": "S.E.2d", "case_ids": [ 12636805 ], "year": 2006, "pin_cites": [ { "page": "502", "parenthetical": "citation omitted" } ], "opinion_index": 0, "case_paths": [ "/se2d/635/0501-01" ] }, { "cite": "827 A.2d 833", "category": "reporters:state_regional", "reporter": "A.2d", "case_ids": [ 9110314 ], "year": 2003, "pin_cites": [ { "page": "837-38" } ], "opinion_index": 0, "case_paths": [ "/a2d/827/0833-01" ] }, { "cite": "190 A.2d 420", "category": "reporters:state_regional", "reporter": "A.2d", "year": 1963, "pin_cites": [ { "page": "423", "parenthetical": "use of \"the\" and \"an\" insured in same policy indicates an intent to cover different situations; \"the\" insured refers to definite, specific insured who is seeking coverage" } ], "opinion_index": 0 }, { "cite": "104 N.H. 465", "category": "reporters:state", "reporter": "N.H.", "case_ids": [ 4458799 ], "year": 1963, "pin_cites": [ { "parenthetical": "use of \"the\" and \"an\" insured in same policy indicates an intent to cover different situations; \"the\" insured refers to definite, specific insured who is seeking coverage" } ], "opinion_index": 0, "case_paths": [ "/nh/104/0465-01" ] }, { "cite": "286 P.2d 816", "category": "reporters:state_regional", "reporter": "P.2d", "year": 1955, "pin_cites": [ { "page": "818", "parenthetical": "use of \"the\" insured in exclusion clause did not preclude recovery of other insureds" } ], "opinion_index": 0 }, { "cite": "45 Cal. 2d 81", "category": "reporters:state", "reporter": "Cal. 2d", "case_ids": [ 4391609 ], "year": 1955, "pin_cites": [ { "parenthetical": "use of \"the\" insured in exclusion clause did not preclude recovery of other insureds" } ], "opinion_index": 0, "case_paths": [ "/cal-2d/45/0081-01" ] }, { "cite": "197 F.2d 673", "category": "reporters:federal", "reporter": "F.2d", "case_ids": [ 496684 ], "year": 1952, "pin_cites": [ { "page": "674", "parenthetical": "use of \"the\" insured would not affect coverage of other insureds" } ], "opinion_index": 0, "case_paths": [ "/f2d/197/0673-01" ] }, { "cite": "687 A.2d 642", "category": "reporters:state_regional", "reporter": "A.2d", "case_ids": [ 7352814 ], "year": 1997, "pin_cites": [ { "page": "644" } ], "opinion_index": 0, "case_paths": [ "/a2d/687/0642-01" ] }, { "cite": "473 F.3d 1131", "category": "reporters:federal", "reporter": "F.3d", "case_ids": [ 2540307 ], "weight": 2, "year": 2006, "pin_cites": [ { "page": "1136" } ], "opinion_index": 0, "case_paths": [ "/f3d/473/1131-01" ] }, { "cite": "259 S.E.2d 786", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1979, "pin_cites": [ { "page": "788", "parenthetical": "\" 'Arising out of' the employment is construed to require that the injury be incurred because of a condition or risk created by the job. There must be a causal relation between the job and the injury.\"" } ], "opinion_index": 0 }, { "cite": "43 N.C. App. 748", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8554559 ], "year": 1979, "pin_cites": [ { "page": "750", "parenthetical": "\" 'Arising out of' the employment is construed to require that the injury be incurred because of a condition or risk created by the job. There must be a causal relation between the job and the injury.\"" } ], "opinion_index": 0, "case_paths": [ "/nc-app/43/0748-01" ] }, { "cite": "551 S.E.2d 902", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 2001, "pin_cites": [ { "page": "906", "parenthetical": "\"In the common vernacular, the phrases 'but for,' 'because of,' and 'on account of' are used interchangeably.\"" } ], "opinion_index": 0 }, { "cite": "146 N.C. App. 82", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 11354393 ], "year": 2001, "pin_cites": [ { "page": "88", "parenthetical": "\"In the common vernacular, the phrases 'but for,' 'because of,' and 'on account of' are used interchangeably.\"" } ], "opinion_index": 0, "case_paths": [ "/nc-app/146/0082-01" ] }, { "cite": "579 S.E.2d 249", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 2003, "opinion_index": 0 }, { "cite": "357 N.C. 149", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 491871 ], "year": 2003, "opinion_index": 0, "case_paths": [ "/nc/357/0149-01" ] }, { "cite": "350 S.E.2d 66", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1986, "pin_cites": [ { "page": "69" } ], "opinion_index": 0 }, { "cite": "318 N.C. 534", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 4732740 ], "year": 1986, "pin_cites": [ { "page": "539" } ], "opinion_index": 0, "case_paths": [ "/nc/318/0534-01" ] }, { "cite": "868 A.2d 244", "category": "reporters:state_regional", "reporter": "A.2d", "case_ids": [ 9176674 ], "year": 2005, "pin_cites": [ { "page": "247" } ], "opinion_index": 0, "case_paths": [ "/a2d/868/0244-01" ] }, { "cite": "684 N.E.2d 956", "category": "reporters:state_regional", "reporter": "N.E.2d", "weight": 6, "year": 1997, "pin_cites": [ { "page": "962" }, { "page": "958" }, { "page": "958-59" }, { "page": "963" } ], "opinion_index": 0 }, { "cite": "369 F. Supp. 2d 1277", "category": "reporters:federal", "reporter": "F. Supp. 2d", "case_ids": [ 8973963 ], "year": 2005, "pin_cites": [ { "page": "1288" } ], "opinion_index": 0, "case_paths": [ "/f-supp-2d/369/1277-01" ] }, { "cite": "1997 U.S. Dist. LEXIS 4359", "category": "reporters:specialty_lexis", "reporter": "U.S. Dist. LEXIS", "weight": 3, "year": 1997, "pin_cites": [ { "page": "13-14" }, { "page": "13" } ], "opinion_index": 0 }, { "cite": "730 A.2d 175", "category": "reporters:state_regional", "reporter": "A.2d", "case_ids": [ 11607821 ], "weight": 3, "year": 1999, "pin_cites": [ { "page": "180", "parenthetical": "citations omitted" }, { "page": "180" }, { "page": "180" } ], "opinion_index": 0, "case_paths": [ "/a2d/730/0175-01" ] }, { "cite": "741 A.2d 50", "category": "reporters:state_regional", "reporter": "A.2d", "case_ids": [ 11649204 ], "year": 1999, "pin_cites": [ { "page": "53" } ], "opinion_index": 0, "case_paths": [ "/a2d/741/0050-01" ] }, { "cite": "691 S.W.2d 71", "category": "reporters:state_regional", "reporter": "S.W.2d", "case_ids": [ 9959369 ], "year": 1985, "opinion_index": 0, "case_paths": [ "/sw2d/691/0071-01" ] }, { "cite": "969 So.2d 288", "category": "reporters:state_regional", "reporter": "So. 2d", "case_ids": [ 8362397 ], "weight": 2, "year": 2007, "pin_cites": [ { "parenthetical": "opinions interpreting policy phrases including \"because of' as referring to proximate cause or requiring evidence supporting vicarious liability" } ], "opinion_index": 0, "case_paths": [ "/so2d/969/0288-01" ] }, { "cite": "723 F.Supp. 1263", "category": "reporters:federal", "reporter": "F. Supp.", "case_ids": [ 4045785 ], "weight": 2, "year": 1989, "pin_cites": [ { "page": "1265" }, { "page": "1265" } ], "opinion_index": 0, "case_paths": [ "/f-supp/723/1263-01" ] }, { "cite": "410 A.2d 550", "category": "reporters:state_regional", "reporter": "A.2d", "case_ids": [ 7984394 ], "year": 1980, "pin_cites": [ { "page": "553-54" } ], "opinion_index": 0, "case_paths": [ "/a2d/410/0550-01" ] }, { "cite": "673 A.2d 1350", "category": "reporters:state_regional", "reporter": "A.2d", "case_ids": [ 7873781 ], "year": 1996, "pin_cites": [ { "page": "1352" } ], "opinion_index": 0, "case_paths": [ "/a2d/673/1350-01" ] }, { "cite": "188 A.2d 889", "category": "reporters:state_regional", "reporter": "A.2d", "weight": 5, "year": 1963, "pin_cites": [ { "page": "891-92" }, { "page": "891-92", "parenthetical": "internal citations omitted" }, { "page": "892" }, { "page": "891-92" }, { "page": "891-92" } ], "opinion_index": 0 }, { "cite": "373 A.2d 247", "category": "reporters:state_regional", "reporter": "A.2d", "case_ids": [ 8014399 ], "year": 1977, "pin_cites": [ { "page": "250-51" } ], "opinion_index": 0, "case_paths": [ "/a2d/373/0247-01" ] }, { "cite": "589 A.2d 35", "category": "reporters:state_regional", "reporter": "A.2d", "case_ids": [ 11289431 ], "year": 1991, "pin_cites": [ { "page": "36" } ], "opinion_index": 0, "case_paths": [ "/a2d/589/0035-01" ] }, { "cite": "699 A.2d 1153", "category": "reporters:state_regional", "reporter": "A.2d", "case_ids": [ 11912780 ], "weight": 2, "year": 1997, "pin_cites": [ { "page": "1156", "parenthetical": "internal citations omitted" } ], "opinion_index": 0, "case_paths": [ "/a2d/699/1153-01" ] }, { "cite": "688 A.2d 928", "category": "reporters:state_regional", "reporter": "A.2d", "case_ids": [ 7363421 ], "weight": 2, "year": 1997, "pin_cites": [ { "parenthetical": "internal citations omitted" }, { "page": "931" } ], "opinion_index": 0, "case_paths": [ "/a2d/688/0928-01" ] }, { "cite": "574 S.E.2d 6", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 2002, "pin_cites": [ { "page": "11", "parenthetical": "citation omitted" } ], "opinion_index": 0 }, { "cite": "154 N.C. App. 156", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 9249212 ], "year": 2002, "pin_cites": [ { "page": "163", "parenthetical": "citation omitted" } ], "opinion_index": 0, "case_paths": [ "/nc-app/154/0156-01" ] }, { "cite": "606 S.E.2d 728", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 2005, "pin_cites": [ { "page": "733", "parenthetical": "\"[T]he interpretation of a contract is governed by the law of the place where the contract was made[.]\"" } ], "opinion_index": 0 }, { "cite": "168 N.C. App. 182", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8468710 ], "year": 2005, "pin_cites": [ { "page": "187", "parenthetical": "\"[T]he interpretation of a contract is governed by the law of the place where the contract was made[.]\"" } ], "opinion_index": 0, "case_paths": [ "/nc-app/168/0182-01" ] }, { "cite": "526 S.E.2d 463", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 2000, "pin_cites": [ { "page": "465-66" } ], "opinion_index": 0 }, { "cite": "351 N.C. 424", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 1155922 ], "year": 2000, "pin_cites": [ { "page": "428" } ], "opinion_index": 0, "case_paths": [ "/nc/351/0424-01" ] }, { "cite": "179 N.C. App. 843", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8240519 ], "year": 2006, "pin_cites": [ { "page": "845", "parenthetical": "citation omitted" } ], "opinion_index": 0, "case_paths": [ "/nc-app/179/0843-01" ] }, { "cite": "585 S.E.2d 497", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 2003, "pin_cites": [ { "page": "499", "parenthetical": "\"An order of partial summary judgment on the issue of whether an insurance company has a duty to defend in the underlying action 'affects a substantial right that might be lost absent immediate appeal.' \" (Citation omitted)" } ], "opinion_index": 0 }, { "cite": "160 N.C. App. 399", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8956392 ], "year": 2003, "pin_cites": [ { "page": "401", "parenthetical": "\"An order of partial summary judgment on the issue of whether an insurance company has a duty to defend in the underlying action 'affects a substantial right that might be lost absent immediate appeal.' \" (Citation omitted)" } ], "opinion_index": 0, "case_paths": [ "/nc-app/160/0399-01" ] }, { "cite": "588 S.E.2d 20", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 2003, "pin_cites": [ { "page": "25-26", "parenthetical": "internal citations omitted" } ], "opinion_index": 0 }, { "cite": "161 N.C. App. 20", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8955097 ], "year": 2003, "pin_cites": [ { "page": "26", "parenthetical": "internal citations omitted" } ], "opinion_index": 0, "case_paths": [ "/nc-app/161/0020-01" ] }, { "cite": "1997 WL 164268", "category": "reporters:specialty_west", "reporter": "WL", "weight": 2, "year": 1997, "pin_cites": [ { "page": "*5" } ], "opinion_index": 1 }, { "cite": "369 F. Supp. 2d 1277", "category": "reporters:federal", "reporter": "F. Supp. 2d", "case_ids": [ 8973963 ], "year": 2005, "pin_cites": [ { "page": "1287-88" } ], "opinion_index": 1, "case_paths": [ "/f-supp-2d/369/1277-01" ] }, { "cite": "1997 U.S. Dist. LEXIS 4359", "category": "reporters:specialty_lexis", "reporter": "U.S. Dist. LEXIS", "weight": 2, "year": 1997, "pin_cites": [ { "page": "*13-14" } ], "opinion_index": 1 }, { "cite": "691 S.W.2d 71", "category": "reporters:state_regional", "reporter": "S.W.2d", "case_ids": [ 9959369 ], "year": 1985, "opinion_index": 1, "case_paths": [ "/sw2d/691/0071-01" ] }, { "cite": "969 So.2d 288", "category": "reporters:state_regional", "reporter": "So. 2d", "case_ids": [ 8362397 ], "year": 2007, "opinion_index": 1, "case_paths": [ "/so2d/969/0288-01" ] }, { "cite": "723 F.Supp. 1263", "category": "reporters:federal", "reporter": "F. Supp.", "case_ids": [ 4045785 ], "year": 1989, "pin_cites": [ { "page": "1265" } ], "opinion_index": 1, "case_paths": [ "/f-supp/723/1263-01" ] }, { "cite": "188 A.2d 889", "category": "reporters:state_regional", "reporter": "A.2d", "year": 1963, "pin_cites": [ { "page": "892", "parenthetical": "citation omitted" } ], "opinion_index": 1 }, { "cite": "867 F.2d 1164", "category": "reporters:federal", "reporter": "F.2d", "case_ids": [ 10535008 ], "year": 1989, "pin_cites": [ { "page": "1166" } ], "opinion_index": 2, "case_paths": [ "/f2d/867/1164-01" ] }, { "cite": "629 F. Supp. 114", "category": "reporters:federal", "reporter": "F. Supp.", "case_ids": [ 3837218 ], "year": 1985, "pin_cites": [ { "page": "120" } ], "opinion_index": 2, "case_paths": [ "/f-supp/629/0114-01" ] }, { "cite": "31 A.2d 233", "category": "reporters:state_regional", "reporter": "A.2d", "year": 1943, "pin_cites": [ { "page": "235" } ], "opinion_index": 2 }, { "cite": "96 Mass. (14 Allen) 329", "category": "reporters:state", "reporter": "Mass.", "year": 1867, "opinion_index": 2 }, { "cite": "13 N.E. 343", "category": "reporters:state_regional", "reporter": "N.E.", "year": 1887, "opinion_index": 2 }, { "cite": "161 A. 496", "category": "reporters:state_regional", "reporter": "A.", "year": 1932, "pin_cites": [ { "page": "498", "parenthetical": "citing Mack v. Rochester German Ins. Co., 13 N.E. 343 (N.Y. 1887), and Lyman & others v. State Mutual Fire Insurance Company, 96 Mass. (14 Allen) 329 (1867)" } ], "opinion_index": 2 }, { "cite": "723 F.Supp. 1263", "category": "reporters:federal", "reporter": "F. Supp.", "case_ids": [ 4045785 ], "year": 1989, "pin_cites": [ { "page": "1264-65" } ], "opinion_index": 2, "case_paths": [ "/f-supp/723/1263-01" ] } ], "analysis": { "cardinality": 1434, "char_count": 42755, "ocr_confidence": 0.751, "pagerank": { "raw": 4.03580807328026e-08, "percentile": 0.13697400890939973 }, "sha256": "4b6f3d8aa0e6ec2f52b0d504fb615e69149e62a6959da35b7226641bb8a86140", "simhash": "1:9253ddeb0479a4f5", "word_count": 6974 }, "last_updated": "2023-07-14T21:32:21.116750+00:00", "provenance": { "date_added": "2019-08-29", "source": "Harvard", "batch": "2018" }, "casebody": { "judges": [ "Judge JACKSON concurs in the result with a separate opinion.", "Judge STEELMAN concurs in part and dissents in part with a separate opinion." ], "parties": [ "HUBER ENGINEERED WOODS, LLC, Plaintiff-Appellee v. CANAL INSURANCE COMPANY, Defendant-Appellant" ], "opinions": [ { "text": "McGEE, Judge.\nPlaintiff is a North Carolina building products manufacturer and Defendant is a South Carolina insurer of trucking operations. W.M. Jr. Trucking, Inc. (W.M.) is a Maine trucking company. Plaintiff and W.M. entered into a contract (the contract) in 2004. In the contract, W.M. agreed to provide Plaintiff with trucking services. The contract required W.M. to maintain insurance, including \u201c[b]road form comprehensive general liability insurance . . . for personal injury and property damage covering liability assumed by [W.M.] under this AGREEMENT.\u201d W.M. obtained a commercial automobile liability policy (the policy) from Defendant. According to an affidavit from Wallace Mahan, Jr., W.M.\u2019s president, W.M. intended for the policy to fulfill the requirements of the contract, and \u201cdirectly benefit\u201d Plaintiff, affording Plaintiff with \u201cprotection against . . . bodily injuries arising from the performance of [W.M.\u2019s] trucking services.\u201d\nJoseph Nichols (Nichols), a truck driver employed by W.M., was fatally injured on 17 June 2005 after falling from his truck while attempting to secure a tarp over a load of plywood at Plaintiff\u2019s manufacturing plant in Easton, Maine. On 11 September 2006, Nichols\u2019 estate filed a wrongful death action against Plaintiff in superior court, Aroostook County, Maine. Plaintiff filed a complaint against Defendant in Mecklenburg County Superior Court on 4 March 2008. Plaintiff sought (1) compensatory damages for breach of contract and (2) compensatory damages, punitive damages, and attorney\u2019s fees for \u201cbad faith.\u201d Plaintiff also sought an order compelling Defendant to \u201cdefend and indemnify\u201d Plaintiff in the Maine action.\nDefendant filed a motion to dismiss Plaintiff\u2019s action on 5 May 2008, pursuant to N.C. Gen. Stat. \u00a7 1A-1, Rule 12(b)(6). Plaintiff amended its complaint on 28 May 2008, specifically asking for a declaratory judgment that Defendant was obligated to defend and indemnify Plaintiff from the claims made against Plaintiff in the Maine action. By motion filed 9 June 2008, Defendant again moved to dismiss Plaintiff\u2019s amended complaint, pursuant to Rule 12(b)(6). In an order entered 22 July 2008, the trial court denied Defendant\u2019s motion to dismiss.\nPlaintiff moved for summary judgment on its declaratory judgment action on 10 September 2008. By motion filed 15 September 2008, Defendant moved for summary judgment on the declaratory judgment action. By order entered 15 December 2008, the trial court denied Defendant\u2019s motion for summary judgment, granted Plaintiff\u2019s motion for summary judgment, and declared that the policy \u201cprovides defense and indemnity coverage to [Plaintiff] for the claims asserted against [Plaintiff]\u201d in the Maine action. Defendant appeals.\nIn Defendant\u2019s two arguments on appeal, it contends that the trial court erred in denying its motion for summary judgment, in granting summary judgment in favor of Plaintiff, and in determining that the policy required Defendant to both defend and indemnify Plaintiff with respect to Nichols\u2019 11 September 2006 action. We agree in part.\nSummary judgment is proper when \u201cthe pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that any party is entitled to a judgment as a matter of law.\u201d The moving party bears the burden of demonstrating the lack of triable issues of fact. Once the movant satisfies its burden of proof, the burden then shifts to the non-movant to present specific facts showing triable issues of material fact. On appeal from summary judgment, \u201cwe review the record in the light most favorable to the non-moving party.\u201d\nBroughton v. McClatchy Newspapers, Inc., 161 N.C. App. 20, 26, 588 S.E.2d 20, 25-26 (2003) (internal citations omitted).\nWe first note that though this appeal is from an interlocutory order, the interlocutory order affects a substantial right of Defendant and, therefore, this appeal is properly before us. Carlson v. Old Republic Ins. Co., 160 N.C. App. 399, 401, 585 S.E.2d 497, 499 (2003) (\u201cAn order of partial summary judgment on the issue of whether an insurance company has a duty to defend in the underlying action \u2018affects a substantial right that might be lost absent immediate appeal.\u2019 \u201d (Citation omitted)).\n\u201cOur review of the trial court\u2019s construction of the provisions of an insurance policy is de novo.\u201d Smith v. Stover, 179 N.C. App. 843, 845, 635 S.E.2d 501, 502 (2006) (citation omitted).\nNext, we must determine the correct substantive law to apply in this case.\n[T]he general rule is that an automobile insurance contract should be interpreted and the rights and liabilities of the parties thereto determined in accordance with the laws of the state where the contract was entered even if the liability of the insured arose out of an accident in North Carolina. With insurance contracts the principle of lex loci contractus mandates that the substantive law of the state where the last act to make a binding contract occurred, usually delivery of the policy, controls the interpretation of the contract.\nFortune Ins. Co. v. Owens, 351 N.C. 424, 428, 526 S.E.2d 463, 465-66 (2000); see also Szymczyk v. Signs Now Corp., 168 N.C. App. 182, 187, 606 S.E.2d 728, 733 (2005) (\u201c[T]he interpretation of a contract is governed by the law of the place where the contract was made[.]\u201d); N.C. Farm Bureau Mut. Ins. Co. v. Holt, 154 N.C. App. 156, 163, 574 S.E.2d 6, 11 (2002) (citation omitted). Though this action was filed in North Carolina, Plaintiff and Defendant stipulated that W.M. \u201cobtained an automobile liability policy from [Defendant]. The [policy] was issued and delivered in Maine to [W.M.].\u201d We therefore look to Maine substantive law to interpret the policy.\nWe first address the issue of indemnification.\nAn insurer may not litigate its duty to indemnify until the liability of the insured has been determined. The duty to defend is broader than the duty to indemnify, and an insurer may have to defend before it is clear whether a duty to indemnify exists.\nHanover Ins. Co. v. Crocker, 688 A.2d 928, 929 n.1 (Me. 1997) (internal citations omitted); see also Maine State Academy of Hair Design v. Commercial Union Ins. Co., 699 A.2d 1153, 1160 n.2 (Me. 1997); State Mut. Ins. Co. v. Bragg, 589 A.2d 35, 36 (Me. 1991); American Policyholders\u2019 Ins. Co. v. Cumberland Cold Storage Co., 373 A.2d 247, 250-51 (Me. 1977); but see Farm Bureau Mut. Ins. Co. v. Waugh, 188 A.2d 889, 891-92 (Me. 1963). We are therefore constrained to hold that the trial court erred in deciding the issue of indemnification by summary judgment because the \u201cliability of the insured\u201d had not been determined when this action was filed, and we vacate that portion of the 15 December 2008 order.\nWe must next address the issue of Defendant\u2019s duty to defend Plaintiff.\nWe determine the duty to defend by comparing the allegations in the underlying complaint with the provisions of the insurance policy. \u201cIf a complaint reveals a \u2018potential. . . that the facts ultimately proved may come within the coverage,\u2019 a duty to defend exists.\u201d See also Gibson v. Farm Family Mut. Ins. Co., 673 A.2d 1350, 1352 (Me. 1996) (describing the comparison test as whether \u201cthere is any potential basis for recovery . . . regardless of the actual facts on which the insured\u2019s ultimate liability may be based,\u201d and stating that \u201c[a]n insured is not at the mercy of the notice pleading of the third party suing him to establish his own insurer\u2019s duty to defend.\u201d). \u201cEven a complaint which is legally insufficient to withstand a motion to dismiss gives rise to a duty to defend if it shows an intent to state a claim within the insurance coverage.\u201d\nMaine State Academy, 699 A.2d at 1156 (internal citations omitted).\nFor the judicial construction of policies of insurance this Court, has adopted and soundly applied certain rational canons.\n\u201cNo rule, in the interpretation of a policy, is more fully established, or more imperative and controlling, than that which declares that, in all cases, it must be liberally construed in favor of the insured, so as not to defeat, without a plain necessity, his claim to indemnity, which, in making the insurance, it was his object to secure. When the words are, without violence, susceptible of two interpretations, that which will sustain his claim and cover the loss must, in preference, be adopted. While courts will extend all reasonable protection to insurers, by allowing them to hedge themselves about by conditions intended to guard against fraud, carelessness, want of interest, and the like, they will nevertheless enforce the salutary rule of construction, that, as the language of the condition is theirs, and it is therefore in their power to provide for every proper case, it is to be construed most favorably to the insured.\u201d\n\u201cIn case of ambiguity or inconsistency, it is often said that the court will give the policy a construction most favorable to the assured, for the reason that, as the insurer makes the policy and selects his own language, he is presumed to have employed terms which express his real intention.\u201d\n\u201cA contract of insurance, like any other contract, is to be construed in accordance with the intention of the parties, which is to be ascertained from an examination of the whole instrument. All parts and clauses must be considered together that it may be seen if and how far one clause is explained, modified, limited, or controlled by the others.\u201d\nWaugh, 188 A.2d at 891-92 (internal citations omitted); see also Tinker v. Continental Ins. Co., 410 A.2d 550, 553-54 (Me. 1980).\nDefendant argues that Plaintiff is not an \u201cinsured\u201d under the policy. The policy includes a section entitled \u201cPersons Insured.\u201d Plaintiff argues, and Defendant disputes, that Plaintiff is an \u201cinsured\u201d pursuant to section (d) of the \u201cPersons Insured\u201d provision. The \u201cPersons Insured\u201d provision states in relevant part: \u201cEach of the following is an insured under [the policy] to the extent set forth below:\u201d\n(d) any other . . . organization but only with respect to . . . its liability because of acts or omissions of an insured under (a), (b) or (c) above.\nSection (c) is the provision mentioned in section (d) relevant to this appeal. Section (c) states in relevant part:\nany other person while using an owned automobile . . . with the permission of the named insured [W.M.], provided his actual . . . use thereof is within the scope of such permission, but with respect to bodily injury . . . arising out of the loading or unloading thereof, such other person shall be an insured only if he is:\n(2) an employee of the named insuredf ]\nNichols was employed by W.M., and he was fatally injured while using an \u201cowned automobile\u201d of W.M., with permission, and within the scope of that permission. Nichols was therefore an \u201cinsured\u201d under the policy. Plaintiff argues that pursuant to section (d), it is an \u201cinsured\u201d because it is facing \u201cliability because of acts or omissions of an insured,\u201d namely Nichols.\nDefendant contends that Plaintiff is not an \u201cinsured\u201d because section (d) does not cover Plaintiff. Defendant argues, citing several cases from other jurisdictions, that section (d) is a vicarious liability clause. See, e.g., Vulcan Materials Co. v. Casualty Ins. Co., 723 F.Supp. 1263, 1265 (N.D. Ill. 1989); Garcia v. Federal Ins. Co., 969 So.2d 288 (Fla. 2007); Transportation Ins. Co. v. George E. Failing Co., Div. of Azcon, 691 S.W.2d 71 (Tex. App. 1985). While we agree with Defendant that these opinions interpret provisions similar to the provision at issue in this case as simple vicarious liability provisions, none of these opinions have any precedential value in Maine. We find no Maine cases on point, and thus must turn to the Maine laws of insurance policy interpretation to resolve this issue.\nDefendant contends, relying on cases like Vulcan, Garcia, and Transportation Ins. Co., that the language \u201cacts or omissions\u201d contained in section (d) necessarily means negligent \u201cacts or omissions,\u201d and is thus restricted to instances where negligence on the part of the insured has been alleged, and forms part of the basis for the underlying suit. Defendant argues, in other words, that because Nichols\u2019 action against Plaintiff does not rely on any alleged negligence of Nichols, but solely on the alleged negligence of Plaintiff, section (d) does not apply, and Defendant has no duty to defend.\nHowever, section (d) of the policy does not mention \u201cvicarious liability,\u201d and does not speak in terms of \u201cnegligent acts or omissions,\u201d but simply in terms of \u201cacts or omissions.\u201d (Emphasis added). Defendant \u201cenjoyed full contractual freedom when it issued the policy. Had [Defendant] elected to [limit the coverage in the manner it now argues] it could have effected its purpose with trifling effort.\u201d Waugh, 188 A.2d at 892. There is a dispute concerning the meaning of \u201cacts or omissions,\u201d and this language is susceptible to two reasonable interpretations. \u201cWhether or not a contractual term is ambiguous is a question of law.\u201d Bourque v. Dairyland Ins. Co., 741 A.2d 50, 53 (Me. 1999).\nA policy is ambiguous if it is reasonably susceptible of differing interpretations. In determining whether the contract is ambiguous, it is evaluated as a whole and must be construed in accordance with the intention of the parties. When applying these rules of construction, we view the language from the perspective of an average person, untrained in either the law or insurance.\nFoundation for Blood Research v. St. Paul Marine & Fire Ins. Co., 730 A.2d 175, 180 (Me. 1999) (citations omitted). We have not found any Maine opinion interpreting \u201cacts or omissions\u201d in this context. We therefore look to other jurisdictions for guidance. As we have already noted, Defendant cites to cases interpreting language very similar to that included in the policy before us as constituting a simple vicarious liability provision. In each of these cases, the appellate court assumed the term \u201cacts or omissions\u201d referred to legal negligence. Other courts have interpreted \u201cacts or omissions\u201d differently.\nIn Maryland Cas. Co. v. Regis Ins. Co., 1997 U.S. Dist. LEXIS 4359 (E.D. Pa. Apr. 1, 1997), the United States District Court rejected the argument that the term \u201cact or omission\u201d in an insurance policy required negligence.\nThe plain or ordinary meaning of \u201cact or omission\u201d only requires the named insured to do or fail to do something. Negligence would require the named insured to do [or fail to do] something \u201cwhich a reasonable [person] guided by those ordinary considerations which ordinarily regulate human affairs, would do [or would not do].\u201d\nMaryland Cas. Co. v. Regis Ins. Co., 1997 U.S. Dist. LEXIS 4359 at 13-14. The court in Maryland Cas. held that the term \u201cact or omission\u201d was ambiguous, and it looked with disfavor on another United States District Court opinion that had \u201cadded the word \u2018negligent\u2019 before acts or omissions[;]\u201d stating it would \u201cnot read such language into the [policy] where none exists in order to interpret the clause in favor of the insurer.\u201d Id. at 15, n4. In Dillon Cos. v. Royal Indem. Co., 369 F. Supp. 2d 1277, 1288 (D. Kan. 2005) the court found \u201cthat a reasonable insured could understand \u2018acts or omissions\u2019 to mean all acts or omissions, negligent or not.\u201d The Dillon Court concluded \u201cthat the phrase \u2018acts and omissions of [the employer]\u2019 include[d] any act or failure to act by [an employee,]\u201d not just .negligent acts or omissions by the employee. Id.; see also United States Fire Ins. Co. v. Aetna Life & Cas., 684 N.E.2d 956, 962 (Ill. App. Ct. 1st Dist. 1997).\nWe agree with Judge Jackson in her concurring opinion that, on its face, the term \u201cact or omission\u201d appears unambiguous. We do not have to reach a holding on that issue, however. Because we are applying Maine substantive law, we decide not to make an unnecessary holding on the definition of \u201cact or omission.\u201d We need only hold that the term \u201cact or omission\u201d is, at a minimum, reasonably susceptible to differing interpretations. \u201cAct or omission\u201d as it is utilized in the policy is, at a minimum, ambiguous. Blood Research, 730 A.2d at 180; see also Foremost Ins. Co. v. Levesque, 868 A.2d 244, 247 (Me. 2005). Ambiguity will be decided in favor of coverage, unless the clear intent of the parties to the policy dictates otherwise. Waugh, 188 A.2d at 891-92. We do not find any clear expression of intent on the part of either Defendant or W.M., at the time the policy was executed, to exclude Plaintiff from coverage under the policy for the action filed against Plaintiff. However, the president of W.M. executed an affidavit subsequent to the death of Nichols, stating that it was W.M.\u2019s \u201cunderstanding and intention that [the policy] provided the coverage called for in [the contract], and that said insurance would, therefore, directly benefit [Plaintiff.] It was [W.M.\u2019s] understanding and intention to afford such customers protection against . . . bodily injuries arising from the performance of [W.M.\u2019s] trucking services.\u201d We hold that section (d) of the policy did not require negligence on the part of W.M. (or Nichols), but merely that Plaintiff was subject to liability \u201cbecause of\u2019 the acts or omissions of W.M. or Nichols.\nDefendant argues that the term \u201cbecause of\u2019 in the relevant policy provision also limits Defendant\u2019s duty to defend to instances of vicarious liability. Defendant contends that the term \u201cbecause of\u2019 requires a finding of proximate cause, whereas Plaintiff argues \u201cbecause of\u2019 should be defined by its commonly understood meaning. Unfortunately, Defendant does not define \u201cbecause of\u2019 in the policy. Courts in multiple jurisdictions have struggled to decide how language such as \u201cbecause of,\u201d \u201cas the result of,\u201d \u201ccaused by,\u201d and \u201carising out of\u2019 should be interpreted. Certain courts have decided some of these terms require a finding of proximate cause, while other courts have found that these terms merely require a finding of \u201cbut for\u201d causation. Vulcan, 723 F. Supp. at 1265; Garcia v. Federal Ins. Co., 969 So. 2d 288 (Fla. 2007) (opinions interpreting policy phrases including \u201cbecause of\u2019 as referring to proximate cause or requiring evidence supporting vicarious liability).\nThe words \u2018arising out of\u2019 are not words of narrow and specific limitation but are broad, general, and comprehensive terms affecting broad coverage. They are intended to, and do, afford protection to the insured against liability imposed upon him for all damages caused by acts done in connection with or arising out of such use. They are words of much broader significance than \u2018caused by.\u2019 They are ordinarily understood to mean . . . \u2018incident to,\u2019 or \u2018having connection with\u2019 the use of the automobile[.]\nThe parties do not, however, contemplate a general liability insurance contract. There must be a causal connection between the use and the injury. This causal connection may be shown to be an injury which is the natural and reasonable incident or consequence of the use, though not foreseen or expected, but the injury cannot be said to arise out of the use of an automobile if it was directly caused by some independent act or intervening cause wholly disassociated from, independent of, and remote from the use of the automobile.\nState Capital Ins. Co. v. Nationwide Mut. Ins. Co., 318 N.C. 534, 539, 350 S.E.2d 66, 69 (1986); see also Maryland Cas., 1997 U.S. Dist. LEXIS 4359 at 13 (holding that \u201cas a result of\u2019 did not impose \u201ca greater causation requirement than the \u2018but for\u2019 causation applied by courts in cases with clauses using \u2018arising out of\u2019 \u201d); Brewer v. Cabarrus Plastics, Inc., 357 N.C. 149, 579 S.E.2d 249 (2003), adopting the dissent from Brewer v. Cabarrus Plastics, Inc., 146 N.C. App. 82, 88, 551 S.E.2d 902, 906 (2001) (\u201cIn the common vernacular, the phrases \u2018but for,\u2019 \u2018because of,' and \u2018on account of\u2019 are used interchangeably.\u201d) (emphasis added); Warren v. Wilmington, 43 N.C. App. 748, 750, 259 S.E.2d 786, 788 (1979) (\u201c \u2018Arising out of\u2019 the employment is construed to require that the injury be incurred because of a condition or risk created by the job. There must be a causal relation between the job and the injury.\u201d).\nIn fact, one of the cases cited by Defendant, Garcia, was the response of the Supreme Court of Florida to a certified question posed by the Eleventh Circuit. Garcia v. Fed. Ins. Co., 473 F.3d 1131 (11th Cir. Fla. 2006). The Eleventh Circuit, after struggling to determine the meaning of both \u201cbecause of\u2019 and \u201cacts or omissions,\u201d certified the following question to the Florida Supreme Court: \u201cIs an insurance policy that defines a covered person as \u2018any other person with respect to liability because of acts or omissions\u2019 of the insured ambiguous?\u201d Id. at 1136. Though the Florida Supreme Court ultimately held that the provision in Garcia was a vicarious liability provision under Florida law, the Eleventh Circuit clearly believed the language was reasonably susceptible to different interpretations, thus prompting certification of the question to the Florida Supreme Court. We find the term \u201cbecause of\u2019 to be, at a minimum, ambiguous, and therefore interpret it in favor of coverage. Waugh, 188 A.2d at 891-92. Viewing the language \u201cbecause of\u2019 \u201cfrom the perspective of an average person, untrained in either the law or insurance[,]\u201d we afford it its plain meaning, not the legal meaning of \u201cproximate cause.\u201d Blood Research, 730 A.2d at 180.\nWe find United States Fire Ins., supra, instructive. United States Fire Ins. was decided under Illinois law, which, relevant to this appeal, is similar to Maine law. In United States Fire Ins., Gateway, a subcontractor, obtained a general liability policy from USFI which covered the general contractor, Perini Building (the defendant), \u201cbut only with respect to acts or omissions of the named insured [Gateway] in connection with the named insured\u2019s operations at the applicable location designated.\u201d United States Fire Ins., 684 N.E.2d at 958. Startz, an employee of Gateway, was injured while working for Gateway on a project (the Argonne project) run by the defendant. Startz brought action against the defendant based, in part, upon the defendant\u2019s negligence. Startz did not bring suit against his employer, Gateway. Id. at 958-59. The Court in United States Fire Ins. held:\nA comparison of the allegations in the complaint and the endorsement raises the potential for coverage and, in turn, a potential for coverage is all that is necessary to trigger USFI\u2019s duty to defend. When injured, Startz was an employee of Gateway (the named insured), was performing tasks required of him (\u201cin connection with the named insured\u2019s operations\u201d), and was working at the Argonne construction project (\u201cat the applicable location designated\u201d). Defendants] alleged liability to Startz potentially could have arisen from an act or omission on the part of Gateway, whether or not the act or omission rises to the level of negligence. Such a possibility is sufficient to trigger the duty to defend on the part of Gateway\u2019s insurer (USFI) under the additional insured endorsement.\nId. at 963.\nIn the case before us, Nichols, working for W.M. in the course of W.M.\u2019s regular business, was fatally injured on the job. Nichols\u2019 estate sued Plaintiff, claiming Plaintiff\u2019s negligence led to Nichols\u2019 death. Nichols\u2019 estate did not sue W.M. These facts are nearly identical to those present in United States Fire Ins. The United States Fire Ins. Court, applying law very similar to that of Maine, found no issue with the fact that Startz, the injured party, sued the defendant directly for the defendant\u2019s alleged negligence, and did not sue the named insured, Gateway, his employer. We hold that Plaintiff\u2019s alleged liability to Nichols\u2019 estate \u201cpotentially could have arisen from an act or omission on the part of [an insured under the policy], whether or not the act or omission [rose] to the level of negligence.\u201d Id. This possibility was \u201csufficient to trigger the duty to defend[.]\u201d Id. This argument is without merit.\nWe disagree with the dissent\u2019s contention that our decision relies in any part on Plaintiff\u2019s affirmative defense of comparative negligence to Nichols\u2019 estate\u2019s claim against Plaintiff. As we have stated above, we hold that no showing of negligence on the part of Nichols was required to trigger Defendant\u2019s duty to defend. We clearly agree with the dissent that a \u201cnumber of other courts have considered the arguments made by [P]laintiff in the instant case and found them to be without merit.\u201d We have cited such cases above without reservation. It is equally clear, however, that a number of other jurisdictions have considered the arguments made by Plaintiff and found merit therein. It is precisely this split in authority that augments our holding regarding the ambiguities inherent in the policy. Insurance companies can avoid the risks inherent in ambiguous policy language by drafting clearer language. As the drafter of the policy before us, only Defendant was in a position to more clearly indicate the limits of coverage under the policy.\nDefendant contends in its second argument that the trial court erred in finding Defendant had a duty to defend Plaintiff because the policy included an employee exclusion clause which barred coverage on the facts of this case. We disagree.\nThe policy included the following language:\nExclusions: This insurance does not apply:\n(c) to bodily injury to any employee of the insured arising out of and in the course of his employment by the insured or to any obligation of the insured to indemnify another because of damages arising out of such injury, but this exclusion does not apply to any such injury arising out of and in the course of domestic, employment by the insured unless benefits therefore are in whole or in part either payable or required to be provided under any workmen\u2019s compensation law[.]\nWe first note that the intent behind this provision appears to be to deny coverage for the employee in instances where the injured employee is eligible to collect workers\u2019 compensation benefits. Further, language used throughout the policy refers to \u201cany insured,\u201d \u201can insured,\u201d \u201cthe named insured,\u201d \u201cthe designated insured,\u201d and \u201cthe insured.\u201d\n[W]e hold that by excluding coverage for damages intentionally caused by \u201can insured person,\u201d Allstate unambiguously excluded coverage for damages intentionally caused by any insured person under the policy. \u201cAn\u201d is an indefinite article routinely used in the sense of \u201cany\u201d in referring to more than one individual object.\nJohnson v. Allstate Ins. Co., 687 A.2d 642, 644 (Me. 1997). However,\nprovisions excluding from coverage injuries . . . caused by \u201cthe insured\u201d refer to a definite, specific insured, who is directly involved in the occurrence that causes the injury. Western Casualty & Surety Co. v. Aponaug Mfg. Co., 197 F.2d 673, 674 (5th Cir. 1952) (use of \u201cthe\u201d insured would not affect coverage of other insureds); Arsenon v. National Auto. and Casualty Ins. Co., 45 Cal. 2d 81, 286 P.2d 816, 818 (Cal. 1955) (use of \u201cthe\u201d insured in exclusion clause did not preclude recovery of other insureds); Pawtucket Mut. Ins. Co. v. Lebrecht, 104 N.H. 465, 190 A.2d 420, 423 (N.H. 1963) (use of \u201cthe\u201d and \u201can\u201d insured in same policy indicates an intent to cover different situations; \u201cthe\u201d insured refers to definite, specific insured who is seeking coverage); Unigard Mut. Ins. Co. v. Argonaut Ins. Co., 20 Wash. App. 261, 579 P.2d 1015, 1019 (Wash. Ct. App. 1978) (coverage and exclusion defined in terms of \u201cthe\u201d insured create separate obligations to several insureds). The \u201cthe insured\u201d language in this policy differs from the \u201can insured\u201d exclusion language present in other policies. Such \u201can insured\u201d language in an exclusion clause is equated with \u201cany insured\u201d and means that the conduct of any insured that is excluded from coverage bars coverage for each insured under the policy. Such is not the case with [this] policy[.]\nCrocker, 688 A.2d at 931; see also Korhonen v. Allstate Ins. Co., 827 A.2d 833, 837-38 (Me. 2003). As the Supreme Judicial Court of Maine has determined that \u201cthe insured\u201d refers only to the person or entity seeking coverage, we must apply that definition to the facts of this case. Plaintiff is the entity seeking coverage; therefore, the language referring to \u201cthe insured\u201d in the exclusionary provision must refer to Plaintiff, and cannot refer to W.M. Nichols was employed by W.M., not Plaintiff. Therefore, because Nichols was not an employee of Plaintiff, by the express language of the exclusionary provision, the exclusionary provision does not apply on the facts before us.\nWe therefore affirm the trial court\u2019s ruling that Defendant has a duty to defend Plaintiff in the action brought against Plaintiff by Nichols\u2019 estate. The issue of indemnification should be addressed, if necessary, after the issue of Plaintiff\u2019s liability to Nichols\u2019 estate has been finally determined.\nAffirmed in part, vacated in part.\nJudge JACKSON concurs in the result with a separate opinion.\nJudge STEELMAN concurs in part and dissents in part with a separate opinion.", "type": "majority", "author": "McGEE, Judge." }, { "text": "JACKSON, Judge,\nconcurring in the result.\nI concur in the result reached by the majority; however, I write separately to express my concern with respect to the precedential effect of the majority\u2019s holding that \u201cthe term \u2018act or omission\u2019 is . . . reasonably susceptible to differing interpretations[,]\u201d and is therefore \u201cambiguous.\u201d The phrase \u201cact or omission\u201d is commonplace in legal practice and legal writing, and to hold that the phrase, standing alone, is ambiguous may have regrettable consequences.\nBlack\u2019s Law Dictionary defines \u201cact\u201d as \u201c[something done or performed\u201d or \u201c[t]he process of doing or performing; an occurrence that results from a person\u2019s will being exerted on the external world[.]\u201d Black\u2019s Law Dictionary 27 (9th ed. 2009). Black\u2019s Law Dictionary defines \u201comission\u201d as \u201c[a] failure to do something\u201d or \u201c[t]he act of leaving something out.\u201d Black\u2019s Law Dictionary 1197 (9th ed. 2009).\nOther jurisdictions previously have interpreted provisions in other insurance contracts similar to the provision at issue here. See, e.g., Dillon Cos. Inc. v. Royal Indem. Co., 369 F. Supp. 2d 1277, 1287-88 (D. Kan. 2005); Vulcan Materials Co. v. Casualty Ins. Co., 723 F. Supp. 1263, 1265 (N.D. Ill. 1989); Maryland Cas. Co. v. Regis Ins. Co., 1997 WL 164268, 1997 U.S. Dist. LEXIS 4359 (E.D. Pa. Apr. 1, 1997); Garcia v. Federal Ins. Co., 969 So. 2d 288 (Fla. 2007); Transp. Ins. Co. v. George E. Failing Co., 691 S.W. 2d 71 (Tex. App. 1985). However, the fact that the underlying causes of action in those cases sounded in negligence does not render the term \u201cact or omission\u201d ambiguous by virtue of its being susceptible to differing interpretations, even though the phrase, standing alone, is broad enough to include causes of action other than negligence.\nTo the contrary, I believe that the phrase is clear and unambiguous. Maryland Cas. Co. correctly explained that\n[tjhe plain or ordinary meaning of \u201cact or omission\u201d only requires the named insured to do or fail to do something. Negligence would require the named insured to do [or fail to do] something \u201cwhich a reasonable [person] guided by those ordinary considerations which ordinarily regulate human affairs, would do [or would not do].\u201d\nMaryland Cas. Co., 1997 WL 164268, at *5, 1997 U.S. Dist. LEXIS 4359, at *13-14 (citation omitted). The phrase \u201cact or omission,\u201d is plain, but it is also broad and inclusive, and it therefore is applicable in various contexts \u2014 whether in a suit for negligence or for some other tort. The foregoing quotation from Maryland Cas. Co. simply illustrates that court\u2019s analysis of the \u201cplain and ordinary meaning of \u2018act or omission\u2019 \u201d with respect to the law of negligence, but the phrase is still clear and unambiguous, although it may be applied in other contexts.\nI do not mean to imply that this Court should read any missing modifiers (e.g., \u201cnegligent\u201d act or omission; \u201cintentional\u201d act or omission) into an insurance policy. Rather, it is incumbent upon defendant, as the drafter of the insurance policy, to limit the scope of policy coverage if, and as, it desires to do so with obvious due regard for established public policy and constraints on unconscionability. As the majority explains, \u201cDefendant \u2018enjoyed full contractual freedom when it issued the policy. Had [Defendant] elected to [limit the coverage in the manner it now argues,] it could have effected its purpose with trifling effort.\u2019 \u201d See Farm Bureau Mut. Ins. Co. v. Waugh, 188 A.2d 889, 892 (Me. 1963) (citation omitted). Here, however, defendant failed to modify \u201cact or omission,\u201d and the plain meaning of the phrase is apparent, albeit broad.\nAccordingly, I perceive a precedential danger in holding, without qualification, that the phrase \u201cact or omission\u201d is ambiguous, and I do not believe the phrase, standing alone, is ambiguous. However, because the plain meaning of the unmodified phrase \u201cact or omission\u201d contained within the policy already extends coverage to plaintiff without resorting to rules of construction attendant to a purported ambiguity, I join in the result reached in the majority as limited by this concurrence.", "type": "concurrence", "author": "JACKSON, Judge," }, { "text": "STEELMAN, Judge,\nconcurring in part and dissenting in part.\nI concur in the majority\u2019s conclusion that a substantial right is affected and that defendant\u2019s appeal of the trial court\u2019s interlocutory order is properly before this Court. I also concur in the majority\u2019s determination that the construction of the insurance policy is governed by Maine law.\nIt should be noted at the outset that this action is between Huber and Canal. W.M. Jr. Trucking, Inc. (W.M.) is not a party to this action. There is nothing in the record that suggests that Canal was aware of the Transportation Contract between Huber and W.M., and its terms are irrelevant to the issues presented in this case.\nIs Huber an \u201cInsured\u201d Under the Canal Policy?\nNichols was a driver for W.M. and died as a result of injuries received while picking up a load of plywood at Huber\u2019s Easton, Maine plant. W.M. had procured a liability insurance policy from Canal, which insured the vehicle being operated by Nichols. The Canal policy defines an \u201cinsured\u201d as follows;\nIII. PERSONS INSURED: Each of the following is an insured under this insurance to the extent set forth below:\n(a) the named insured;\n(b) any partner or executive officer thereof, but with respect to a temporary substitute automobile only while such automobile is being used in the business of the named insured;\n(c) any other person while using an owned automobile or a temporary substitute automobile with the permission of the named insured, provided his actual operation of (if he is not operating) his other actual use thereof is within the scope of such permission, but with respect to bodily injury or property damage arising out of the loading or unloading thereof, such other person shall be insured only if he is:\n(1) a lessee or borrower of the automobile, or\n(2) an employee of the named insured or of such lessee or borrower;\n(d) any other person or organization but only with respect to his or its liability because of acts or omissions of an insured under (a), (b) or (c) above.\nNichols\u2019 estate filed suit against Huber in the Superior Court of Aroostook County, Maine seeking damages for wrongful death based upon the negligence of Huber. Huber asserted as a defense the negligence of Nichols under Maine\u2019s comparative negligence statute. Me. Rev. Stat. Ann. Tit. 14, \u00a7 156. Based upon this assertion of the negligence of Nichols contributing to his injuries, Huber makes the creative argument that it is an insured under the Canal policy.\nThe majority has gone to great lengths to find ambiguities in the Canal policy and hold that Huber is an \u201cinsured.\u201d There are no ambiguities in the Canal policy, and the concept that the Canal policy provides any liability coverage to Huber is patently absurd.\nHuber\u2019s argument is that Nichols is an \u201cinsured\u201d under section III(c) of the policy as set forth above. Huber then argues that it is also an insured under section 111(d) because it is facing liability because of \u201cacts or omissions of an insured,\u201d i.e. Nichols. Huber does not face liability because of any acts of Nichols, but rather by virtue of allegations of its own negligence by the representatives of Nichols\u2019 estate. The majority distorts an affirmative defense, Maine Rules of Civil Procedure, Rule 8, which may or may not reduce the liability of Huber into a basis for finding coverage under an insurance policy.\nThe purpose of liability insurance is not to indemnify third parties who may injure or damage the policy holder or their agents and employees. Instead, \u201c [liability insurance is a contract of indemnity for the benefit of the insured and those in privity with the insured, or those to whom the statute, upon the grounds of public policy, extends the indemnity against liability.\u201d 43 Am. Jur. 2d Insurance \u00a7 4 (2009).\n... literalism should not be pushed to the length of frustrating, in whole or in part, the general intention the contract evidences; nor, on the other hand, should words be made to mean what they do not really say. A contract should be so construed as to give it only such effect as was intended when it was made. Astute and subtle distinctions should not be attempted, to take a plain case from the operation of material bounds.\nJohnson v. American Automobile Ins. Co., 161 A. 496, 498 (Me. 1932) (citing Mack v. Rochester German Ins. Co., 13 N.E. 343 (N.Y. 1887), and Lyman & others v. State Mutual Fire Insurance Company, 96 Mass. (14 Allen) 329 (1867)); see also Poisson v. Travelers Ins. Co., 31 A.2d 233, 235 (Me. 1943).\nWhile I understand that this case involves the construction of a Maine insurance policy by a North Carolina Court, and will likely never be considered outside of the context of the present case, I believe that the ramifications of the majority\u2019s decision are significant. Under an insurance policy containing the same or similar language, a defendant in a lawsuit arising out of an automobile accident asserting contributory negligence on the part of the plaintiff could demand a defense, and possibly coverage from a plaintiff\u2019s insurance carrier. This is fundamentally inconsistent with the purpose of a party procuring liability insurance.\nA number of other courts have considered the arguments made by plaintiff in the instant case and found them to be without merit. Canal Ins. Co. v. Earnshaw, 629 F. Supp. 114, 120 (D. Kan. 1985), Vulcan Materials Co. v. Casualty Ins. Co., 723 F. Supp. 1263, 1264-65 (N.D. Ill. 1989), Koch Asphalt Co. v. Farmers Ins. Group, 867 F.2d 1164, 1166 (8th Cir. 1989), Transport Ins. Co., Inc. v. Post Express Co., Inc., 1993 U.S. Dist. Lexis 5706 (N.D. Ill. 1993).\nI would reverse the ruling of the trial court.\nApplicability of Exclusion for Injury to Employee\nI would also hold that the exclusion contained in section 1(c) of the policy is applicable and bars any coverage to Huber.\nThe applicable provision states:\nThis insurance does not apply:\n(c) to bodily irijury to any employee of the insured arising out of and in the course of his employment by the insured or to any obligation of the insured to indemnify another because of damages arising out of such injury;\nThe named insured under the policy was W.M. Nichols was an employee of W.M. Nichols was injured in the course of his employment with W.M. The exclusion is clear, is applicable to the facts of this case, and bars any coverage to Huber.\nConclusion\nI would reverse the ruling of the trial court that Canal\u2019s policy \u201cprovides defense and indemnity coverage to Huber for the claims asserted against Huber\u201d in the Maine action filed by Nichols\u2019 estate. This matter should be remanded to the Superior Court of Mecklenburg County for entry of judgment dismissing this action, with prejudice.", "type": "concurring-in-part-and-dissenting-in-part", "author": "STEELMAN, Judge," } ], "attorneys": [ "Robinson, Bradshaw & Hinson, RA., by R. Steven DeGeorge, for Plaintiff-Appellee.", "Smith Moore Leatherwood LLP, by Robert D. Moseley, Jr., G. Fredric Marcinak III, Sidney S. Eagles, Jr., and Elizabeth Brooks Scherer, for Defendant-Appellant." ], "corrections": "", "head_matter": "HUBER ENGINEERED WOODS, LLC, Plaintiff-Appellee v. CANAL INSURANCE COMPANY, Defendant-Appellant\nNo. COA09-335\n(Filed 16 March 2010)\n1. Insurance\u2014 automobile insurance contract \u2014 applicable law\nThe substantive law of Maine applied to a breach of contract case between a North Carolina building products manufacturer and an insurance company because the last act to make the automobile insurance contract binding occurred in Maine.\n2. Insurance\u2014 automobile \u2014 duty to indemnify \u2014 summary judgment\nThe trial court erred in deciding on summary judgment the issue of defendant insurer\u2019s duty to indemnify plaintiff because an insurer may not litigate its duty to indemnify until the liability of the insured has been determined, and plaintiff\u2019s liability in this case had not been determined when the action was filed.\n3. Insurance\u2014 automobile \u2014 duty to defend \u2014 insured\u2014policy terms ambiguous\nPlaintiff was an \u201cinsured\u201d under the terms of an automobile insurance policy because plaintiff was facing liability because of \u201cacts or omissions\u201d of an employee of a named insured. Defendant\u2019s argument that the language \u201cacts or omissions\u201d necessarily meant \u201cnegligent acts or omissions\u201d was overruled. The policy did not require negligence on the part of the named- insured or its employees for plaintiff to be an \u201cinsured.\u201d\n4. Insurance\u2014 automobile \u2014 duty to defend \u2014 insured\u2014policy terms ambiguous\nDefendant\u2019s argument that the term \u201cbecause of\u2019 acts or omissions required a finding of proximate cause and limited defendant\u2019s duty to defend to instances of vicarious liability was overruled. The term was, at a minimum, ambiguous and therefore interpreted in favor of coverage. Because plaintiff\u2019s alleged liability could have arisen from an act or omission on the part of the insured under the policy, it was sufficient to trigger defendant\u2019s duty to defend.\n5. Insurance\u2014 automobile \u2014 duty to defend\nThe trial court did not err in declaring that defendant insurance company had a duty to defendant plaintiff in a wrongful death action brought by the estate of a deceased employee because the employee exclusion clause of the automobile insurance policy at issue did not bar coverage under the facts of the case.\nJACKSON, Judge, concurring in the result.\nSTEELMAN, Judge, concurring in part and dissenting in part.\nAppeal by Defendant from order entered 15 December 2008 by Judge Jesse B. Caldwell, III in Superior Court, Mecklenburg County. Heard in the Court of Appeals 30 September 2009.\nRobinson, Bradshaw & Hinson, RA., by R. Steven DeGeorge, for Plaintiff-Appellee.\nSmith Moore Leatherwood LLP, by Robert D. Moseley, Jr., G. Fredric Marcinak III, Sidney S. Eagles, Jr., and Elizabeth Brooks Scherer, for Defendant-Appellant." }, "file_name": "0001-01", "first_page_order": 29, "last_page_order": 47 }