Judge: Insurance company can proceed with fraud suit

July 16--An insurance company that alleges an Archbald man lied about issues related to a construction accident that left the man's son an amputee can proceed with a lawsuit that seeks to deny coverage, a Lackawanna County judge ruled.

Penn National Security Co. filed suit against Michael Kapinus, alleging he falsely claimed his son, Tyler, did not previously work for his company, KAP Construction, in order to avoid a policy provision that excluded coverage for employees.

Tyler Kapinus, a former Lycoming College football player, was working with his father at St. Mary's Cemetery in Moscow on May 11, 2015, when he tried to stop a dump truck from rolling down an embankment. The truck pinned his right leg against a tree, causing serious injuries that forced doctors to amputate his leg above the knee.

In April 2016, Tyler Kapinus, then 22, filed a lawsuit against his father and his company, alleging negligence. That suit is scheduled to go to trial in October.

Attorneys for Penn National filed a separate court action in June 2016 that seeks to deny coverage on several grounds, including that the Kapinuses misled the company about Tyler's employment. According to the insurance suit, the Kapinuses both told the company Tyler had not worked on any prior KAP construction jobs. However, the attorneys uncovered an Oct. 16, 2015, newspaper article in which Tyler said he worked with his father during summer breaks from school.

Michael Kapinus' attorney, Steven McConnell of Philadelphia, filed a motion to dismiss part of the suit. The motion does not indicate if the Kapinuses admit or deny the allegations. McConnell argues the fraud exclusion does not apply because the policy voids coverage only if a person gives false information to obtain the policy.

Judge Terrence Nealon recently rejected the argument, finding that the policy's language excludes coverage if fraudulent statements are made at any time.

The ruling allows the insurance suit to continue.

A judge or jury will rule at a later date on the insurance company's underlying claim that it is not responsible to defend Michael Kapinus.

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