State Farm Mutual Auto Ins. Co. v. Mosley, et al., No. 13-60287 (5th Cir. 2014)Annotate this Case
Elizabeth Mosley, a volunteer driver for LogistiCare, provided non-emergency medical transportation services for Medicaid patients using an automobile insured by State Farm. After Mosley was involved in an accident in which she was driving and Pearlie Graham was injured, Graham's heirs filed suit against Mosley and LogistiCare in Mississippi state court. State Farm filed suit in federal court seeking a declaration that it had no duty to defend or indemnify Mosley or LogistiCare in the underlying action. The court concluded that collateral estoppel did not prevent State Farm from litigating the "for a charge" exclusion contained in the insurance policy in the present case; the allegations do not sufficiently trigger the "for a charge" exclusion and therefore do not absolve State Farm of its duty to defend LogistiCare and Mosley; the district court erred in granting summary judgment in favor of State Farm as to the duty to defend; but the district court did not err in granting summary judgment in favor of State Farm as to the duty to indemnify. Accordingly, the court affirmed in part, reversed in part, and remanded for further proceedings.