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Dostal v. Strand

Dostal v. Strand

Supreme Court of Wisconsin

January 26, 2023, Filed

No. 2020AP1943

Opinion

REVIEW of a decision of the Court of Appeals.

 [*P1]  ANN WALSH BRADLEY, J. The petitioner, Lindsey Dostal (Dostal), both individually and as special administrator of the estate of Haeven Dostal, seeks review of a court of appeals decision affirming the circuit court's grant of summary and declaratory [**2]  judgment in favor of State Farm.1 The court of appeals determined that Curtis Strand's conduct did not constitute an "occurrence" covered by the State Farm policy at issue because his conviction for second-degree reckless homicide established that the death was not the result of an accident.

 [*P2]  Dostal contends that Strand's criminal conviction does not preclude a finding that Haeven's death was the result of an accident. She further advances that the State Farm policy provides coverage for her claims against Strand and that neither the resident relative nor the intentional acts exclusion bars coverage.

 [*P3]  In contrast, State Farm asserts that issue preclusion bars relitigation of the issue of whether Haeven's death was the result of an accident. It argues that Strand's criminal conviction is dispositive on the issue of available insurance coverage under Strand's policy, and that there is no coverage for Dostal's claims. State Farm further contends that the policy's resident relative and intentional acts exclusions preclude coverage.

 [*P4]  We conclude that issue preclusion does not bar Dostal from seeking insurance coverage for her claims against Strand. The issue of whether Strand's conduct constituted [**3]  an "accident" was not actually litigated in the prior criminal proceeding. Additionally, we conclude that there are genuine issues of material fact regarding the application of the resident relative and intentional acts exclusions such that summary judgment is inappropriate.

 [*P5]  Accordingly, we reverse the decision of the court of appeals and remand to the circuit court for further proceedings consistent with this opinion.

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2023 WI 6 *; 2023 Wisc. LEXIS 7 **

Lindsey Dostal, Individually and as Special Administrator of the Estate of Haeven Dostal, Plaintiff-Appellant-Cross-Respondent-Petitioner, v. Curtis Strand and ABC Insurance Company, Defendants, State Farm Fire and Casualty Company, Intervening-Defendant-Respondent-Cross-Appellant.

Notice: THIS OPINION IS SUBJECT TO FURTHER EDITING AND MODIFICATION. THE FINAL VERSION WILL APPEAR IN THE BOUND VOLUME OF THE OFFICIAL REPORTS.

Prior History:  [**1] COURT: Circuit. COUNTY: Barron. JUDGE: James C. Babler. L.C. No. 2019CV217.

Dostal v. Strand, 399 Wis. 2d 781, 967 N.W.2d 157, 2021 Wisc. App. LEXIS 937, 2021 WL 4851834 (Wis. Ct. App., Oct. 19, 2021)

Disposition: Reversed and cause remanded.

CORE TERMS

reckless, coverage, insured, issue preclusion, resident, circuit court, beyond a reasonable doubt, intentional act, reckless conduct, homicide, relitigation, litigated, insurance policy, criminal trial, direct action, matter of law, great bodily harm, substantial risk, second-degree, occurrence, purposes, accidental, insurance coverage, court of appeals, killing, declaratory judgment, summary judgment, unanimously, preclusion, asserting

Civil Procedure, Summary Judgment, Entitlement as Matter of Law, Appropriateness, Judgments, Entitlement as Matter of Law, Appellate Review, Standards of Review, Legal Entitlement, Genuine Disputes, Declaratory Judgments, Federal Declaratory Judgments, Appellate Review, Insurance Law, Claim, Contract & Practice Issues, Policy Interpretation, Question of Law, Appeals, Standards of Review, De Novo Review, State Declaratory Judgments, Discretionary Jurisdiction, Questions of Fact & Law, Preclusion of Judgments, Estoppel, Collateral Estoppel, Reasonable Expectations, Reasonable Person, Res Judicata, Commercial General Liability Insurance, Coverage, Accidental Injuries, Criminal Law & Procedure, Homicide, Manslaughter & Murder, Involuntary Manslaughter, Elements, Evidence, Burdens of Proof, Allocation, Technical Constructions & Meanings, Motor Vehicle Insurance, Exclusions, Household Members, Inferences & Presumptions, Inferences, Intentional Acts, Claims Made Policies, Exclusions, Acts & Mental States, Mens Rea, Recklessness