Allstate Insurance appealed a summary judgment by a lower court that ruled it was obligated to defend and, if applicable, cover any damages awarded under a wrongful death lawsuit. The insurer wrote a homeowner policy for Charlotte and Michael Muszynski. The Muszynskis’ son and grandchildren also lived in the insured home. The children died in a fire that broke out in the home and, some time afterwards, the personal representative of their estates filed the suit.

Allstate denied coverage for the legal action. Their argument, that the "estates" had the status of insureds and , therefore, were ineligible for coverage under the HO policy. The estate representative argued to the contrary. The estates’ representative claimed that, since she filed the claim; she was not an "insured" and the insurer was obligated to consider the loss. Both parties filed for summary judgments on their respective stands. A lower court ruled against Allstate, That court held the opinion that an insured person and the estate of an insured are two distinct entities. Therefore, an estate could file for damages since any recovery would not literally benefit an insured. The insurer appealed the decision.

The appellate court considered the trial court decision and found it wanting. In its review of the matter, the higher court reiterated the long held precedent of allowing the insurance contract to function as written unless there’s uncertainty about its wording. In this situation, the court found no fault in the relevant policy language regarding insured status. The higher court also reviewed several cases that involved similar elements of the case at hand. The court reasoned that the other cases were consistently resolved in favor of the insurer.

The higher court ruled that, per the contract language, an insured and an insured’s estates are indistinguishable. Since an insured is not eligible for coverage for bodily injury, neither is an insured’s estate. The decision was reversed and remanded with instructions for the original court to grant summary judgment in favor of the insurer.

Allstate Insurance Company, Plaintiff-Appellant v. Michael Muszynski, Walter Muszynski, Charlotte Muszynski and the Estate of Daniel Stephens Muszynski, Defendants/Appellees – Michigan Court of Appeals. No. 229720. Filed September 24, 2002. 2002 Mich. App. Lexis 1327. Reversed and Remanded CCH 6875