Donald Myles and Josh Snell, with Jones, Skelton & Hochuli in Arizona, received summary judgment in Maricopa County for Farmers in a breach of contract, bad faith claim arising from an underlying $5,000,000 stipulated judgment claim involving a third party injured by a Yamaha Rhino owned by a Farmers’ insured. In the underlying matter the third party sued Farmers’ insured for negligent entrustment and failure to warn of the Rhino’s alleged dangerous propensities. Farmers’ insured tendered the claim to Farmers under both his homeowners and umbrella policies. Farmers denied the claim based upon the applicable policies exclusions and the insured entered into a stipulated judgment for $5,000,000 and covenant not to execute.
In the subsequent breach of contract, bad faith claim Farmers filed a motion for summary judgment that the claims arose from a motor vehicle/recreational vehicle and the maintenance, use or entrustment of the Rhino was excluded under both the homeowners and umbrella policies. Plaintiff cross moved for summary judgment that concurrent negligence applied and coverage existed under either one of the policies. The court granted Farmers’ motion and denied Plaintiff’s cross-motion because the claims asserted fell within the applicable exclusions.