HAWKEYE-SECURITY INSURANCE COMPANY, Plaintiff and Appellee, v. ALLEN A. CLIFFORD by his Guardian DEWEY J. CLIFFORD, DAKOTA HOSPITAL, ST. PAUL FIRE AND MARINE INSURANCE CO., VERMILLION CLAY COUNTY AMBULANCE SERVICE, CITY OF VERMILLION, WESTERN WORLD INSURANCE COMPANY, Defendants, and CLAY COUNTY, Defendant and Appellant, 366 N.W.2d 489

Summary

The city filed a third-party complaint against the county seeking contribution or indemnification with respect to a malpractice claim filed against the city. The third-party complaint was ambiguous because it did not reveal whether it was based on tort or contract. When the county tendered the defense of the third-party complaint, the insurer filed a declaratory judgment action for a determination that it owed no duty to defend. On appeal of the trial court's judgment in favor of the insurer, the court reversed. The court ruled that the insurer had a duty to defend if it was reasonably clear from the face of the pleadings that the claim, if true, fell within the policy coverage even if the pleadings were ambiguous or revealed other claims not covered by the policy, and that the insurer did not clearly show it had no duty to defend. The court equated the term "arguably appears" with an ambiguous pleading and concluded it was not necessary to determine if the trial court could resolve ...