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Insurance Law

Duane Schreimann, Esquire

Named driver exclusion upheld.  Yates v. Progressive Preferred Insurance Company, No. 71859 (Mo. App. W.D., February 1, 2011), Mitchell, J.
Roberta L. Pechey was operating an automobile insured by Respondent, when she collided with a motorcycle operated by Appellant.  Respondent's policy had a named driver exclusion that expressly excluded coverage for Ms. Pechey.  Appellant obtained judgment against Ms. Pechey and then filed an equitable garnishment action against Respondent.  The trial court granted summary judgment to Respondent, and on appeal, the court of appeals affirmed.  The court held that Section 303.190.2(3), RSMo, expressly authorizes named driver exclusions and that the exclusion is not contrary to public policy.

Waiver of subrogation clause in construction contract upheld but such waiver applies only while the contract is in effect.  Haren& Laughlin Construction Company, Inc. v. Jayhawk Fire Sprinkler Company, Inc., No.72333 (Mo. App. W.D., January 25, 2011), Newton, J.

Jayhawk Fire Sprinkler Company, Inc. was a subcontractor on a construction project under Appellant, as general contractor.  Appellant through its insurance company paid for damages to the Owner's facility allegedly caused by Respondent's fault, and Appellant filed suit against Respondent seeking recovery of the amounts paid.  The trial court granted summary judgment to Respondent, finding that the subcontract contained an anti-subrogation clause that waived subrogation for any damages covered by insurance.  On appeal, the court of appeals held that Respondent was a third party beneficiary of the General Contract's subrogation waiver but reversed the summary judgment since there was insufficient evidence to determine whether the General Contract was still in effect.  The court stated that the waiver of subrogation rights applies only so long as insurance was required to be maintained under the General Contract.

The Missouri Bar Courts Bulletin, 11-Feb