Auto Coverage, Homeowners Coverage, and “Arising Out Of” Dispute

This case pits an auto liability insurer against a homeowners liability insurer. Each insurer claimed the other was responsible for paying a liability claim, and the disputed point centered on the phrase “arising out of”. The case is Penn National Insurance Company v. Costa, 966 A.2d 1028 (2009).

Arians was employed as a mechanic by Frank Costa. As Arians was leaving work for a lunch break, he saw Costa changing a tire on a pickup truck in Costa's home driveway (Costa had his home next door to his business). Arians walked up the driveway and asked if he could help, but Costa said no. As Arians was leaving, he slipped on some ice and snow in the driveway, fell, and hit his head on the bumper jack Costa was using to lift the pickup truck to replace the flat tire. Arians was severely injured and sought compensation.