Stuart v. American States Insurance

This case presents the issue of whether a foster home constitutes a “business pursuit” as that term is used in an exclusion in a homeowners insurance policy.1 Neoma Stuart alleged injury by Jody Collins, a foster child of the insureds, Tom and Patricia McCabe (the McCabes). The McCabes’ insurer, petitioner American States Insurance Company (ASI), denied coverage and Stuart sued.

The trial court held the McCabes’ foster home was a business pursuit and granted summary judgment to ASI. Stuart appealed and the Court of Appeals reversed and remanded, holding a question of fact exists as to whether…