Summary:
<p>In this case, the Oregon Court of Appeals was reviewing whether or not the trial court erred in holding that an insurance company was estopped from relying on an exclusion in an insurance policy. The plaintiffs in this case were transporting horses in California that were owned by other when the trailer carrying the horses caught fire. The insurers for the horse owners compensated the horse owners and then filed an action against plaintiffs. As a result, plaintiffs charged the defense of the action to their insurer, OMI. OMI refused to provide a defense for the plaintiffs, arguing that it was not covered in the insurance policy. Plaintiffs filed an action against OMI to recover the costs arguing that they were verbally told that this would be covered in the policy. The trial court ordered summary judgment for the plaintiffs, holding that OMI was estopped from denying liability because it had breached its contract with plaintiff. Ultimately, the court of appeals reviewed the issue and determined that the trial court had erred in its decision. The court of appeals found that based on applicable case law, estoppel cannot be used to negate an express exclusion in an insurance policy. As a result, the court reversed the trial court's decision and remanded the case.</p>
In this case, the Oregon Court of Appeals was reviewing whether or not the trial court erred in holding that an insurance company was estopped from relying on an exclusion in an insurance policy. The plaintiffs in this case were transporting horses in California that were owned by other when the trailer carrying the horses caught fire. The insurers for the horse owners compensated the horse owners and then filed an action against plaintiffs. As a result, plaintiffs charged the defense of the action to their insurer, OMI. OMI refused to provide a defense for the plaintiffs, arguing that it was not covered in the insurance policy. Plaintiffs filed an action against OMI to recover the costs arguing that they were verbally told that this would be covered in the policy. The trial court ordered summary judgment for the plaintiffs, holding that OMI was estopped from denying liability because it had breached its contract with plaintiff. Ultimately, the court of appeals reviewed the issue and determined that the trial court had erred in its decision. The court of appeals found that based on applicable case law, estoppel cannot be used to negate an express exclusion in an insurance policy. As a result, the court reversed the trial court's decision and remanded the case.