Wade Clark Mulcahy LLP

Wade Clark Mulcahy LLP is pleased to announce that Executive Partner Robert J. Cosgrove and Associate Caroline G. Nelson secured a summary judgment on behalf of an insurer in a Pennsylvania insurance coverage declaratory judgment action arising from injuries allegedly sustained during medical transportation.

The dispute stemmed from an underlying personal injury action alleging that the claimant was injured while being removed from a transport vehicle for a scheduled medical appointment. Following the underlying lawsuit, WCM commenced a declaratory judgment proceeding to determine whether the policy’s “Loading or Unloading of Persons” limitation applied to the claim and restricted available coverage for the insured.

This coverage dispute raised a consequential question before the court: Did the policy’s limitation apply to injuries sustained while the claimant was being removed from the vehicle? WCM argued that the allegations fell within the plain language of the policy limitation and therefore restricted the coverage available for the claim.

The Court of Common Pleas of Philadelphia County granted summary judgment in favor of WCM’s client, holding that the policy limitation applied because the alleged injuries occurred during the unloading of the claimant from the transport vehicle. The court also denied a co-defendant nursing facility’s cross-motion for summary judgment and dismissed its cross-claims for contribution and indemnification.

This decision reinforces the Pennsylvania courts’ practice of enforcing clear and unambiguous policy limitations according to their plain language and highlights the importance of examining the underlying complaint and its allegations when determining the scope of coverage and applicability of policy endorsements and sublimits.

For insurers, the decision illustrates how carefully drafted policy limitations impact coverage outcomes and potential exposure when claims involve specialized risks. While clear and specific language helps define the circumstances that trigger a limitation, early analysis of the underlying allegations under the policy language allows insurers to identify applicable restrictions and assess potential exposure.