Insurance — illusory coverage

Listen to this article

Wisconsin Court of Appeals

Civil

Insurance — illusory coverage

Liberty Mutual Insurance Company appeals from a final judgment, awarding Jesus M. Hernandez $50,000 under an excess liability insurance policy issued by Liberty. The $50,000 award came following the circuit court’s decision to grant Hernandez’s motion for declaratory judgment and the parties’ subsequent stipulation to the $50,000 judgment. Liberty asserts that the Other-Insurance Clause included in the Wisconsin Endorsement to the Excess Policy properly excludes certain permissive users from coverage for first utilizing the underlying Liability Policy on which coverage under the Excess Policy is contingent, thereby precluding coverage for Hernandez’s injuries. We disagree and conclude that Liberty’s reading of the Excess Policy and the policy’s Wisconsin Endorsement renders the Wisconsin Endorsement illusory. As such, we affirm. Not recommended for publication in the official reports.

2013AP1286 Hernandez v. Liberty Mutual Insurance Company, et al.

Dist I, Milwaukee County, Amato, J., Brennan, J.

Attorneys: For Appellant: Schrimpf, Thomas R., Milwaukee; For Respondent: Odian, Elizabeth, Milwaukee; For Respondent: Abraham, Jason, Milwaukee; Mirabella, Joseph M., Milwaukee