Tony Stewart On His Own In Ward Suit After Losing Insurance Battle
US Disctict judge Hurd ruled Tony Stewart did not adhere to his insurance policy and therefore his insurer does not have to provide coverage or a defense in the Kevin Ward Jr. wrongful death suit.
As Beyond the Flag reported before, Tony Stewart’s insurance carrier, Axis, had denied coverage for any damages that resulted from the incident in August 2014 at Canandaigua Motorsports Park. Stewart’s policy had contained specific exclusions regarding the series he raced in and the number of races other than NASCAR he could participate. Stewart had sued AXIS to force them to provide a defense in the upcoming civil case against the Ward family
The list of specific events that AXIS would cover Stewart for if there was an incident included World of Outlaws (65 events), USAC Sprint (30 events) and USAC Silver Crown (10 events). Unfortunately that list does not include the Empire Sprints event that Stewart participated in that night. The judge ruled that since the Empire Sprints event was not on the list of approved events AXIS was under no obligation to provide a defense for Stewart in the case.
Unfortunately for Stewart even if Judge David Hurd had decided the race at Canandaigua Motorsports Park was allowed, the incident itself very well could have provided AXIS another reason for denial. Stewart’s policy carried specific language regarding incidents between drivers.
"This insurance does not apply to claims or actions brought by one racing vehicle driver against another racing vehicle driver. However in the event of such a claim or action, coverage remains in effect for the First Named Insured and any other applicable insureds; however, coverage is specifically excluded for the racing vehicle driver who is the object of such claim or action."
Attorneys for Stewart did not announce if they would appeal or any actions they would take. Unfortunately for Stewart the litigation in the Ward case is going to drag on long after he retires from NASCAR Sprint Cup driving at the end of the season. This case is just to decide if Stewart’s own insurance company would have to provide a defense in any civil litigation going forward. Since there were no criminal charges filed, the civil case being brought by the Ward family is all that remains .
Related Story: Tony Stewart Kevin Ward Jr Lawsuit Update
If todays decision stands, Stewart is now responsible for providing his own defense in the Kevin Ward Jr. wrongful death case. He would also be financially responsible for any damages he is found liable for. All of the costs to defend the case are now going to be adding up for Stewart as his driving career is winding down. It could also put his assets, such as his stake in Stewart Haas Racing, in jeopardy if the case results in a large financial decision against him.
The next step in the case is for filings by both sides in the actual wrongful death case. The case itself has also been assigned to US District Court Judge David Hurd in Utica. The discovery deadline is January 6th, but if Stewart’s legal team decides to appeal todays decision an extension is likely. After the January 6th date there is a second date set for motions to be filed by February 8th.
At the time of this writing there has not been a date set for the start of the trial.