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Appeals court rules in Bluffton U. bus crash liability

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Staff report 9:59 PM Monday, November 9, 2009

LIMA — The 3rd District Court of Appeals in Allen County on Monday, Nov. 9, ruled that a charter bus company and driver in the March 2007 fatal crash involving the Bluffton University baseball team were not covered under two policies with the university that provided a combined $20 million liability limit.

The court unanimously decided that neither Executive Coach Luxury Travel Inc., nor driver Jerome Niemeyer qualified as insureds under the college policy.

The litigation arose out of the accident in Atlanta that left Niemeyer, his wife and five players dead.

Bluffton hired Executive Coach to provide transportation.

Bluffton had a commercial umbrella policy with American Alternative Insurance Corp. that had a liability limit of $5 million.

A commercial excess follow-form policy with Federal Insurance Co. had a liability limit of $15 million.

Federal and American asked Allen County common pleas court to declare that neither company owed Executive Coach or Mr. Niemeyer’s estate any excess liability insurance coverage arising out of the crash.

The appeals court affirmed the trial court ruling, which found that the driver’s employment and use of the bus was with Executive Coach, and not the university.

Judge Stephen Shaw, writing for the decision for the appealed court, said Executive Coach at all times maintained “possession and control” of the vehicle, and that Bluffton “was exposed to no liability arising out of the use of the coach nor a right to control its use.”

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