BENTON – Bailey Watson, who obtained a $6.7 million judgment for injuries she suffered when a wood chipper ran over her, plans to appeal an order finding Atain Specialty Insurance doesn’t have to pay it.
Her counsel Lanny Darr of Alton filed an appeal notice on March 13, a month after Senior U. S. District Judge Phil Gilbert granted judgment to Atain.
Policy holder James Hodge, owner of Riverbend Tree Service, accidentally pulled the chipper over Watson with his truck in 2020 on property where they both lived.
Darr notified Atain that Watson sought coverage under Hodge’s policy.
Atain declined coverage and sued for declaratory judgment in district court.
Watson filed an injury suit against Hodge in Madison County Circuit Court.
Hodge didn’t defend it and Watson moved for default judgment.
Circuit Judge Dennis Ruth granted it and awarded $6,699,548.52 to Watson.
She filed a garnishment action against Atain in Madison County for the entire amount.
Atain removed the action to district court and Gilbert consolidated it with the declaratory judgment action.
Watson returned to Madison County Circuit Court last year and sued insurance agencies Lewis and Clark, Equity, and Burns and Wilcox.
She claimed they shared liability with Atain as a result of procuring, brokering, and placing insurance for Hodge’s business.
Lewis and Clark and Equity intervened in Gilbert’s court, agreeing with Watson that Atain should pay.
Gilbert decided in February that Hodge’s policy covered the chipper while in operation but the chipper wasn’t in operation during the incident.
He found it wasn’t actively being used, running, or otherwise turned on.
He added that it was being passively hauled by Hodge’s truck.
Gilbert found he couldn’t create ambiguity in the policy where there was none.
On the date Darr filed Watson's appeal notice, Equity and Lewis and Clark also filed an appeal notice.
Litigation against the agencies continues in Madison County, where the agencies accuse Hodge and Watson of collusion.