INSURANCE LAW
Supreme Court of Alaska (2024)
Scott Tompetrini
In Thompson v. United Services Automobile Ass’n, 542 P.3d 222 (Alaska 2024), the supreme court held that an injury caused by a partially deconstructed aircraft fell within an insurance policy’s coverage exception for injuries “arising out of” ownership or use of an aircraft. (Id. at 223–24). Thompson’s husband owned a Piper aircraft, but had removed its wings, tail, and a few other parts because it was no longer airworthy. (Id. at 224). When helping her husband move the Piper aircraft, Thompson became pinned under the nose and was severely injured. (Id.). The United Services Automobile Association (USAA) policy owned by Thompson’s husband included an exception excluding coverage for bodily injury “arising out of” the ownership or use of an aircraft. (Id.). USAA filed suit seeking a declaration that Thompson’s injuries were not covered because they fell within this aircraft exception. (Id.). Both parties moved for summary judgment, and the lower court granted USAA’s motion. (Id.). On appeal, Thompson argued that since the Piper was partially deconstructed, it no longer constituted an aircraft and was merely “aircraft parts,” which would not fall within the policy exception. (Id. at 228). The supreme court noted that whether the Piper was an aircraft or “aircraft parts” was irrelevant because the injury still resulted from Thompson’s husband’s ownership of the original aircraft. (Id.). The court focused on the broad language of the USAA policy, noting that the exception covered any injury “arising out of” ownership or use of an aircraft. (Id.). The court reasoned that any causal connection between aircraft ownership and the injury would fall within the policy exception. (Id. at 226). Since Thompson was only moving the Piper aircraft because her husband previously bought the aircraft, the court found a clear causal link. (Id. at 229). Thus, the court affirmed the lower court’s ruling and held that the aircraft exception excluded coverage for injuries caused by a partially deconstructed aircraft. (Id. at 230).
