Denver Partner Andrew Lavin and Of Counsel Jack Mann achieved a significant legal victory in the Tenth Circuit Court of Appeals, affirming the district court’s dismissal of a lawsuit against their insurer client regarding the denial of benefits under an accidental death and disability policy.
The case at hand arose from a claim for benefits related to a tragic incident involving an individual whose death was associated with the use of Kratom, a substance derived from the leaves of the Mitragyna speciosa tree. The insurer denied the claim based on a drug exclusion clause within the policy, which led to litigation initiated by the claimant's beneficiaries.
In the court's ruling, it was determined that the language of the policy was unambiguous and that the reasonable expectations doctrine did not apply in this instance. The Tenth Circuit upheld the district court's interpretation, emphasizing that the explicit wording of the policy clearly delineated Kratom as falling within the exclusionary terms.
This case marked a pivotal moment as it represented the first appellate decision in the nation to classify Kratom (mitragynine) as a “drug” in the context of an insurance policy's drug exclusion. As the landscape of case law surrounding Kratom-related fatalities continues to evolve, this decision is expected to serve as a guiding precedent for other jurisdictions facing similar disputes.
Contact a member of GRSM's Insurance practice group with questions about how this ruling impacts your insurance policies or if you would like to learn more about the implications of emerging substances on coverage.