INSURANCE-FINANCIAL RESPONSIBILITY LAW-HOUSEHOLD EXCLUSION-RETROACTIVITY

June 28th, 2019 by Rieders Travis in Insurance

Stockdale vs. Allstate Fire & Cas. Ins. Co., 2019 U.S. Dist. LEXIS 101133, *2.  This Case presents an unresolved question of Pennsylvania law:  What effect should be given to Gallagher vs. GEICO Indemnity Co., 201 A.3d 131 (Pa. 2019).  A Pennsylvania Supreme Court decision that held a particular insurance exclusion – called the “household exclusion” – violated Pennsylvania Motor Vehicle Financial Responsibility Law, 75 Pa. C.S.A. 1701 et. seq. (“MVFRL”)?  Plaintiff argues that, as is generally the case, the holding should e applied to cases brought after Gallagher was decided, but concerning events that predate the decision.  Defendant, however, argues that an exception to that general rule is in order here and that Gallagher should be applied only to cases arising out of events that postdate the decision.  As explained below, no exception warranted here and defendant’s motion to dismiss the Complaint will be denied accordingly.