Allstate Insurance Company v. David Naai

MEMORANDUM

In a tragic accident, Sherisse Thompson backed her vehicle over two children on property owned by defendant David A. Naai, killing one of the children and severely injuring the other. The children’s parents sued, and named Naai as a defendant for negligently designing or constructing the property in such a way that the resident manager’s building, and thus the parking for the building’s visitors, was located in an area used by tenants’ children as a playground. Naai was insured for liability through a policy issued by Plaintiff Allstate Insurance Co. (“Allstate”), and tendered defense of the lawsuit to Allstate. Allstate filed a declaratory relief action in district court seeking a declaration that there was no possibility for coverage, and therefore Allstate owed Naai no defense for the lawsuit. The district court granted summary judgment in Allstate’s favor, finding the policy unambiguously excludes bodily injuries arising from motor vehicles. Naai appeals. We affirm.

“Hawaii insurance law provides for a broad duty to defend arising whenever the pleadings raise a potential for indemnification liability of the insurer to the insured.” Burlington Ins. Co. v. Oceanic…