An insurer must defend an Illinois equestrian business from a lawsuit filed by a man who was injured when he was run over by a golf cart operated by an employee who was chasing a loose horse, a federal appellate court ruled Monday.
A three-judge panel of the 7th Circuit Court of Appeals reversed a district court judge’s order granting summary judgment in favor of American Bankers Insurance Co. of Florida. The opinion says the “farmowner policy” issued to St. Charles Farms contained ambiguous language that the owners could have construed as providing commercial general liability coverage.
“The risks undertaken and purchased were ‘[a]ll known exposures’ of the business: stables, boarding, riding clubs and academies, commercial saddle animals, and coverage for instructors liability,” the opinion states. “Without a link to the insured premises at that juncture, it would have been reasonable for SFC to anticipate coverage at an off‐site riding event where an SFC instructor was in charge of observing riders; an accident in this context was an ordinary business risk.”
On Nov. 11, 2016, SFC employee Ashley Ratay transported horses, equipment and a golf cart from the business’ property in St. Charles, Illinois to the Barrington Hills Riding Center, about 15 miles away. Ratay was in charge of supervising the people riding SFC’s horses, which she did while riding the golf cart.
Robert Shockley Jr. was riding as a passenger in the golf cart when Ratay sped across a grassy field to chase a horse. Shockley flew out of the cart when it passed over uneven ground and Ratay ran over his leg.
After Shockley filed a lawsuit seeking compensation from Ratay and SFC for his injuries, American Banker filed a lawsuit at the U.S. District Court for Northern Illinois seeking a declaratory judgment that no coverage was owed under its policy.
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