Insurer will not indemnify racer Tony Stewart in lawsuit over death of Port Leyden man

July 30--Tweet

PORT LEYDEN -- A federal judge ruled Friday that NASCAR driver Tony Stewart's insurance carrier does not have to defend or indemnify him in a lawsuit brought by the family of Kevin A. Ward Jr., who died after being struck by Mr. Stewart's car during an August 2014 race.

U.S. District Court Judge David N. Hurd, Utica, ruled that Axis Insurance Co.'s policy with Mr. Stewart "unambiguously limited" the insurer's liability to specific races, of which the Aug. 9, 2014, race at Canandaigua Motorsports Park in Ontario County was not one.

Kevin A. Ward Sr. and Pamela Ward of Port Leyden are suing Mr. Stewart claiming, among other things, that he acted recklessly when he struck and killed Kevin Ward, who had exited his vehicle under a yellow caution flag and appeared to be yelling in the direction of Mr. Stewart's car.

An Ontario County grand jury cleared Mr. Stewart of any criminal wrongdoing.

Axis Insurance filed action in September seeking a judgment declaring that it was not obligated to cover Mr. Stewart during the race in which he was participating. Mr. Stewart filed a counterclaim asserting breach of contract and bad faith.

According to Judge Hurd's decision, Mr. Stewart's policy covered 105 "specified events." The judge wrote that it is "undisputed" that the event in which Kevin Ward was killed was not one of the specified events, although attorneys for Mr. Stewart countered that certain language in the policy supported their position that coverage was warranted.

Judge Hurd said that it was clear in the policy that claims arising from racing activities would be limited to the specified events.

He denied Mr. Stewart's motion for partial summary judgment, granted Axis Insurance's cross-motion for summary judgment and dismissed Mr. Stewart's counterclaims.

The lawsuit will now continue with Mr. Stewart bearing the costs of his defense.

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