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Contracts Keyed to Dawson
Illinois National Insurance Co. v. Wyndham Worldwide Operations, Inc.
Citation:653 F.3d 225.
In 2001, Wyndham entered into an Aircraft Management Services Agreement with Jet Aviation. Jet Aviation agreed to provided various services such as domestic flight planning, staffing, and procuring insurance for Wyndham’s aircraft. From 2004 to 2008 Jet Aviation purchased insurance policies from Illinois National for the benefit of Wyndham. From 2004-2007 the policy contained a Managed Aircraft Endorsement that insured specific non-owned aircraft: “. . .excluding any Non-Owned Aircraft unless such Non-Owned Aircraft is operated by or used at the direction of Jet Aviation Business Jets, Inc. . . .” In 2008, Jet Aviation proposed that the language be changed to read as: “. . .excluding any Non-Owned Aircraft unless such Non-Owned Aircraft is operated by or used at the direction of the Named Insured . . .” Jet Aviation and Illinois National both claimed the modification was to clarify that entities associated with Jet Aviation were covered, however the language as drafted potentially expanded coverage. In August 2008, a Wyndham employee procured an airplane for work-related travel. Jet Aviation was not involved in this transaction. During the flight, the employee crashed the plane into a house killing five people. Various parties sued Wyndham for damages and Illinois National became concerned that the crash may have triggered coverage under the language of the 2008 policy.
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