In a typical South Carolina car accident lawsuit, it is the injured driver or passenger who files suit. However, this is not always the case. Sometimes, an insurance company files what is called a “declaratory judgment action” in order to seek the court’s guidance as to the applicability and/or extent of coverage of a particular claim or set of claims. Such was the situation in a recent appellate case involving a fatal crash that allegedly followed a police chase in Anderson County, South Carolina.
Facts of the Case
In a case filed in the Anderson County Circuit Court and considered by the South Carolina Court of Appeals, the plaintiff was an automobile accident liability insurance company that sought declaratory relief following a fatal, one-vehicle accident that occurred in 2008. According to the plaintiff, its insured and two other individuals were riding as passengers in the vehicle at the time of the crash; one of the passengers was killed, and the insured and the other passenger were catastrophically injured. The driver, who was apparently not a party to the civil lawsuit filed by the plaintiff insurance company against the defendant insured and passengers, was the defendant in a separate criminal case in which he pled guilty to reckless homicide (a felony offense in South Carolina).
According to the plaintiff, the insurance policy in effect at the time of the accident had an exclusion for bodily injury caused by anyone who was operating the covered vehicle while committing a felony or fleeing from a law enforcement officer. The trial court found that the provisions at issue were unenforceable because (1) the insurance company had failed to inform the insured of the exclusions or otherwise place them conspicuously on the insurance policy; (2) the exclusions were ambiguous; and (3) the exclusions violated the state’s public policy of protecting innocent insureds,
namely the three passengers who were deemed not at fault in causing the collision.
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