Mid-Century Insurance Company, LLC, which had issued an auto policy to Mr. French's parents that contained a named driver exclusion endorsement that listed Mr. French as a person excluded from coverage, filed a complaint against Mr. French, his parents, and Mr. Stern seeking a declaration that its policy did not provide liability coverage for any claim made by Mr. Stern against Mr. French.

Mr. Stern answered and counterclaimed for a declaratory judgment that he was entitled to coverage under the Mid-Century policy.

Mr. Stern moved for summary judgment, and Mid-Century moved for judgment on the pleadings.

Pennsylvania's Motor Vehicle Financial Responsibility Law

Pennsylvania's Motor Vehicle Financial Responsibility Law ("MVFRL") provides:

An insurer or the first named insured may exclude any person or his personal representative from benefits under a policy enumerated in section 1711 or 1712 when . . .

The first named insured has requested that the person be excluded from coverage while operating a motor vehicle. This paragraph shall only apply if the excluded person is insured on another policy of motor vehicle liability insurance.

75 Pa. C.S.A. § 1718(c)(2) (emphasis added).

The District Court's Decision

The district court, applying Pennsylvania law, granted Mid-Century's motion and denied Mr. Stern's motion.

In its decision, the district court explained that because Mr. French's parents – the named insureds on the Mid-Century policy – had asked that he be excluded from coverage while operating a motor vehicle, MVFRL Section 1718(c)(2) applied as long as Mr. French was "insured on another policy of motor vehicle liability insurance."

The district court then noted that Mr. French was included within the scope of Ms. Lambert's insurance policy. In particular, the court observed, Mr. French was listed on that policy as an additional driver and, in addition, Ms. Lambert's insurer defended him in Mr. Stern's lawsuit.

Accordingly, the district court concluded, the named driver exclusion in the Mid-Century barred its coverage of Mr. Stern's lawsuit against Mr. French.

The case is Mid-Century Ins. Co. v. French, No. 2:19-cv-00563-JDW (E.D. Pa. Sep. 12, 2019). Attorneys involved include: For MID-CENTURY INSURANCE COMPANY, LLC, Plaintiff: WILLIAM K. CONKIN, LEAD ATTORNEY, MARSHALL DENNEHEY WARNER COLEMAN & GOGGIN, PHILADELPHIA, PA; EILEEN MARGARET BRADLEY, MARSHALL DENNEHEY WARNER COLEMAN & GOGGIN, PHILADELPHIA, PA. For ROBERT STERN, Defendant, Counter Claimant: MICHAEL A. CANCELLIERE , JR., LEAD ATTORNEY, NASS CANCELLIERE BRENNER, PHILADELPHIA, PA; MICHAEL A. ROWE, NASS CANCELLIERE BRENNER, PHILADELPHIA, PA. For MID-CENTURY INSURANCE COMPANY, LLC, Counter Defendant: WILLIAM K. CONKIN, LEAD ATTORNEY, MARSHALL DENNEHEY WARNER COLEMAN & GOGGIN, PHILADELPHIA, PA.