Intransit, Inc. v. Travelers Property & Casualty Company of America

MEMORANDUM

The district court erred in granting In-transit, Inc.’s motion for summary judgment and denying Travelers Property and Casualty Co.’s cross-motion for summary judgment. Under Oregon law, ambiguous terms in insurance contracts are interpreted to the benefit of the insured. Hoffman Constr. Co. v. Fred S. James & Co., 313 Or. 464 , 836 P.2d 703, 706-07 (1992) (en banc). The district court properly concluded that the term “carrier” is ambiguous and must therefore include both fraudulent and legitimate motor transportation companies. But the district court erred by not giving the term “carrier” the same meaning when construing the policy’s exclusion for carrier dishonesty. Nothing in the insurance agreement “clearly indicat[es]” an intent to define the term “carrier” differently in the coverage and exclusions provisions. Schweigert v. Beneficial Standard Life Ins. Co., 204 Or. 294 , 282 P.2d 621, 626 (1955). Absent such a clear indication, Oregon courts presume that a term has a consistent meaning throughout an insurance contract. See id. at 625-26. The criminal acts of the fraudulent “carrier” that resulted in the loss are therefore subject to the exclusion. However,…