Monticello Insurance v. Mike's Speedway Lounge, Inc.

ENTRY ON MOTION FOR SUMMARY JUDGMENT

HAMILTON, District Judge.

The central issue in this case is whether an insurance company may sell to a tavern a general commercial liability insurance policy that excludes coverage for losses “arising out of or in connection with the manufacturing, selling, distributing, serving of furnishing of any alcoholic beverages.” As explained below, the court concludes that under Indiana law, this exclusion rendered the purchased liability “coverage” illusory. The plaintiff insurer’s motion for summary judgment is therefore denied.

Facts

Plaintiff Montieello Insurance…