Court Opinion

ID: 9462619
Source: CourtListenerOpinion
Date Created: 2023-08-04 22:45:45.043947+00
Date Added: 2024-06-11T17:37:41.061929
License: Public Domain

LEWIS R. MORGAN, Circuit Judge
(dissenting).
Since I believe the insurance policy is ambiguous when taken as a whole, I respectfully dissent. The majority correctly points out that if the damage to Mr. Burton’s house was caused by “any earth movement, including . . . earth sinking . .” then the policy excludes coverage, but if the damage was caused by “collapse of the building” which “ensues from settling . . . .” then the insurance company is liable. To avoid finding these two clauses in conflict the majority arbitrarily includes additional terms to modify the contract. Instead of any earth movement being excluded, only earth movements that are “sudden” are excluded from coverage. Instead of any collapse of a building which ensues from settling resulting in liability, only settling that is “gradual” is included in the policy. There is absolutely no support in the policy for these modifications. Webster’s Third New International Dictionary, which has been cited as authority by the Alabama Supreme Court in a similar situation, Green v. Merrill, 293 Ala. 628, 308 So.2d 702 (1975), includes as one of the definitions of sinking “to subside gradually; to settle.” What this insurance policy does is in one term to exclude coverage for any earth movement including any sinking which by definition would include any damage caused by settling. Then, the policy in another clause states that such a settling would in fact be covered by the insurer. In such a case, where the terms of the policy are conflicting an ambiguity requiring construction arises. United Service Automobile Association v. Smith, 329 So.2d 562, 565 (Ala.Ct.App.1976). Both sides agree that if there was an ambiguity the issue should have been submitted to the jury and in this case the jury held against the insurer who had the burden.
Apparently, the majority is not prepared to rely solely on this sudden-gradual distinction. The majority states, “the patent intent of the contracting parties was to establish insurance coverage of damage caused by gradual non-cataclysmic earth movements.” I believe this statement shows a misunderstanding of Alabama law. The policy was an “all-risk” policy designed to cover all damage except those specifically excluded. If the majority’s position is that the exclusions from coverage include only those earth movements that were “cataclysmic,” there can be no question that the Burtons were insured for this damage. While the sink hole caused considerable damage to their home, it can hardly be referred to as cataclysmic. In short, this policy is contradictory, in one clause it excludes coverage and in a subsequent clause it specifically includes coverage for the damage that occurred here. In this case, the court’s finding below of ambiguity is proper. Therefore, the able district judge properly instructed the jury, and the jury acting under these instructions made a finding for the policyholder which I feel should be affirmed.