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Nationwide Mut. Fire Ins. Co. v. Somers

The insured was not entitled to summary judgment on its indemnification for breach of contract claim since insurer had no liability for perpetual care of defendant's son's grave site absent a contract.

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Nationwide Mutual Fire Insurance Company appeals the grant of summary judgment to Deborah Somers, John Connolly and Margie Connolly, d/b/a Sunrise Memorial Gardens “Sunrise”, John Connolly and Margie Connolly, d/b/a Easley Marble Company “Easley”, Amanda Conant, and Phillip Ronald Woodall in the declaratory judgment action that Nationwide filed against them. Nationwide’s complaint for a declaratory judgment alleged that it was uncertain about its rights and obligations under a commercial general liability policy it issued to Sunrise and asked the superior court for a declaratory judgment defining its rights and obligations and the legal relationships of the parties. Somers is the plaintiff in an action against Sunrise alleging that Sunrise entered into a perpetual care contract that was assigned to her and that, under that contract, her son was buried at Sunrise. She contends that Sunrise breached the contract by failing to maintain the grave site and allowing it to be desecrated. She demanded compensatory and punitive damages and attorneys fees.1

Sunrise demanded that Nationwide provide coverage under its Nationwide policy, but Nationwide contends one or more of the exclusions in the policy apply and that there is no coverage under the policy. Although Nationwide has provided Sunrise with a defense, it has reserved its rights under the policy. It has not, however, officially denied coverage.

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