The U.S. Court of Appeals for the Eighth Circuit has affirmed adistrict court decision reforming a commercial insurance policy toinclude an exclusion that the insurance company had inadvertentlyomitted.

The case

Harleysville Worchester Insurance Company issued a commercialinsurance policy to Diamondhead Property Owners Association, Inc.,a gated community in Hot Springs, Arkansas. Although the partiesintended for the policy to exclude coverage for law enforcement,Harleysville inadvertently omitted that exclusion from the policyitself.

Following an alleged altercation between a Diamondhead policeofficer and two Diamondhead residents, Harleysville suedDiamondhead, the officer, and the two residents, seekingreformation of the insurance contract and a declaration that it hadno duty to defend or indemnify the officer.

The district court granted Harleysville its desired relief, andthe officer appealed.

The circuit court's decision

The circuit court affirmed.

In its decision, the circuit court found that the“uncontroverted evidence” demonstrated that Harleysville, theinsurance agent and Diamondhead all had intended to enter into aninsurance policy that excluded coverage for law enforcement andthat Harleysville's failure to exclude that coverage from thepolicy had been inadvertent. The circuit court then held that thedistrict court, therefore, had not erred in reforming the policy toreflect the parties' intent.

The case is HarleysvilleWorchester Ins. Co. v. Diamondhead Property Owners Ass'n,Inc., No. 13–2061 (8th Cir. Feb. 4, 2014). Attorneysinvolved include: Luther Oneal Sutter, Benton, AR, for appellant;Mariam T. Hopkins, Mark D. Wankum, Little Rock, AR, forappellee.

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