four-corners rule in Wisconsin

2019Thus, under the four-corners test, the insurer has a duty to defend so long as the insurer " ' could be held bound to indemnify the insured, assuming that the injured person proved the allegations of the complaint, regardless of the actual outcome of the case.' " Sustache , 311 Wis.2d 548 , ¶22, 751 N.W.2d 845 (emphasis added) (quoting Grieb , 33 Wis.2d at 558 , 148 N.W.2d 103 , which in turn quotes 29A Am.

2019Thus, under the four-corners test, the insurer has a duty to defend so long as the insurer " ' could be held bound to indemnify the insured, assuming that the injured person proved the allegations of the complaint, regardless of the actual outcome of the case.' " Sustache , 311 Wis.2d 548 , ¶22, 751 N.W.2d 845 (emphasis added) (quoting Grieb , 33 Wis.2d at 558 , 148 N.W.2d 103 , which in turn quotes 29A Am.

2017"The insurer's duty arises when the allegations in the complaint coincide with the coverage provided by the policy."27 Thus, "[i]f the [factual] allegations in the complaint, construed liberally, appear to give rise to coverage, insurers are required to provide a defense until the final resolution of the coverage question by a court."28 The proper application of the four-corners rule presents a question of law that the court 25 Fireman's Fund, 261 Wis. 2d 4, ¶17 . 26 In Water Well Solutions Service Group, Inc. v. Consolidated Insurance Co., 2016 WI 54, ¶24 , 369 Wis. 2d 607 , 881 N.W.2d 285 ,

2017"The insurer's duty arises when the allegations in the complaint coincide with the coverage provided by the policy."27 Thus, "[i]f the [factual] allegations in the complaint, construed liberally, appear to give rise to coverage, insurers are required to provide a defense until the final resolution of the coverage question by a court."28 The proper application of the four-corners rule presents a question of law that the court 25 Fireman's Fund, 261 Wis. 2d 4, ¶17 . 26 In Water Well Solutions Service Group, Inc. v. Consolidated Insurance Co., 2016 WI 54, ¶24 , 369 Wis. 2d 607 , 881 N.W.2d 285 ,

2016Berg, 138 Wis. 2d at 123 .

2007Ironically, the Berg court cited to Grieb for the four-corners rule, see Berg, 138 Wis. 2d at 122 , but not to Grieb's reference to the exceptions to the rule.

2017Co., 2016 WI 53, ¶¶61-76 , 369 Wis. 2d 547 , 881 N.W.2d 309 ). ¶7 In the case now before us, if we were to stop our analysis after determining that there was an initial grant of coverage, the parties would not receive a full four-corners analysis.

2017Co., 2016 WI 53, ¶¶61-76 , 369 Wis. 2d 547 , 881 N.W.2d 309 ). ¶7 In the case now before us, if we were to stop our analysis after determining that there was an initial grant of coverage, the parties would not receive a full four-corners analysis.

2016In Estate of Sustache, the court of appeals examined whether the exceptions to the four-corners rule acknowledged in Griebe had been foreclosed by Doyle and Smith , but ultimately concluded only that "this issue warrants supreme court comment at some point in the future." Estate of Sustache, 2007 WI App 144, ¶ 20 , 303 Wis. 2d 714 , 735 N.W.2d 186 .

2016In Estate of Sustache, the court of appeals examined whether the exceptions to the four-corners rule acknowledged in Griebe had been foreclosed by Doyle and Smith , but ultimately concluded only that "this issue warrants supreme court comment at some point in the future." Estate of Sustache, 2007 WI App 144, ¶ 20 , 303 Wis. 2d 714 , 735 N.W.2d 186 .

2025Great Lakes Beverages, LLC v. Wochinski, 2017 WI App 13, ¶15 , 373 Wis. 2d 649 , 892 N.W.2d 333 . ¶6 Whether an insurer has a duty to defend is determined through application of the four-corners rule, whereby the circuit court is limited to comparing “the four corners of the underlying complaint to the terms of the entire insurance policy.” Water Well Sols.

2025Great Lakes Beverages, LLC v. Wochinski, 2017 WI App 13, ¶15 , 373 Wis. 2d 649 , 892 N.W.2d 333 . ¶6 Whether an insurer has a duty to defend is determined through application of the four-corners rule, whereby the circuit court is limited to comparing “the four corners of the underlying complaint to the terms of the entire insurance policy.” Water Well Sols.

2019We now quote the discussion that followed, with emphasis on the statements that appear most pertinent here: "An insurer does not breach its contractual duty to *229 defend by denying coverage where the issue of coverage is fairly debatable as long as the insurer provides coverage and defense once coverage is established." Elliott [ v. Donahue , 169 Wis.2d 310 , 317, 485 N.W.2d 403 (1992) ].

2019We now quote the discussion that followed, with emphasis on the statements that appear most pertinent here: "An insurer does not breach its contractual duty to *229 defend by denying coverage where the issue of coverage is fairly debatable as long as the insurer provides coverage and defense once coverage is established." Elliott [ v. Donahue , 169 Wis.2d 310 , 317, 485 N.W.2d 403 (1992) ].

2019The supreme court concluded that, on these facts, Citizens breached its contractual duty to defend its insured, rejecting both of the following closely related arguments by Citizens: (1) that Citizens "was entitled to rely on the circuit court's decision that no coverage existed under its policy until the court of appeals reversed that decision," and (2) that Citizens "was not required to defend [the insured] at the liability trial because that trial occurred after the circuit court ruled there was no coverage under Citizens' policy and before the court of appeals reversed that determination."

2019The supreme court concluded that, on these facts, Citizens breached its contractual duty to defend its insured, rejecting both of the following closely related arguments by Citizens: (1) that Citizens "was entitled to rely on the circuit court's decision that no coverage existed under its policy until the court of appeals reversed that decision," and (2) that Citizens "was not required to defend [the insured] at the liability trial because that trial occurred after the circuit court ruled there was no coverage under Citizens' policy and before the court of appeals reversed that determination."

2017Wisconsin Stat. § 802.01(1)(a) requires complaints to "plead facts, which if true, would entitle the plaintiff to relief."33 Data Key Partners v. Permira Advisors LLC, 2014 WI 86, ¶21 , 356 Wis. 2d 665 , 849 N.W.2d 693 . 34 Stuart v. Weisflog's Showroom Gallery, Inc., 2008 WI 86, ¶36 , 311 Wis. 2d 492 , 753 N.W.2d 448 (internal quotation marks and quoted source omitted).

2017Wisconsin Stat. § 802.01(1)(a) requires complaints to "plead facts, which if true, would entitle the plaintiff to relief."33 Data Key Partners v. Permira Advisors LLC, 2014 WI 86, ¶21 , 356 Wis. 2d 665 , 849 N.W.2d 693 . 34 Stuart v. Weisflog's Showroom Gallery, Inc., 2008 WI 86, ¶36 , 311 Wis. 2d 492 , 753 N.W.2d 448 (internal quotation marks and quoted source omitted).

2017Girl, Inc., 2004 WI 2, ¶24 , 268 Wis. 2d 16 , 673 N.W.2d 65 ("First, we examine the facts of the insured's claim to determine whether the policy's insuring agreement makes an initial grant of coverage."). (continued) 18 No. 2015AP79.ssa "[W]e must focus on the incident or injury that gives rise to the claim, not the plaintiff's theory of liability."34 ¶64 In applying the four-corners rule in the instant case, the court is guided by the following rules for interpreting an insurance policy: • Words and phrases in insurance contracts are subject to the same rules of construction that apply to con

2017Girl, Inc., 2004 WI 2, ¶24 , 268 Wis. 2d 16 , 673 N.W.2d 65 ("First, we examine the facts of the insured's claim to determine whether the policy's insuring agreement makes an initial grant of coverage."). (continued) 18 No. 2015AP79.ssa "[W]e must focus on the incident or injury that gives rise to the claim, not the plaintiff's theory of liability."34 ¶64 In applying the four-corners rule in the instant case, the court is guided by the following rules for interpreting an insurance policy: • Words and phrases in insurance contracts are subject to the same rules of construction that apply to con

2017Wisconsin Stat. § 802.01(1)(a) requires complaints to "plead facts, which if true, would entitle the plaintiff to relief."33 Data Key Partners v. Permira Advisors LLC, 2014 WI 86, ¶21 , 356 Wis. 2d 665 , 849 N.W.2d 693 . 34 Stuart v. Weisflog's Showroom Gallery, Inc., 2008 WI 86, ¶36 , 311 Wis. 2d 492 , 753 N.W.2d 448 (internal quotation marks and quoted source omitted).

2017Wisconsin Stat. § 802.01(1)(a) requires complaints to "plead facts, which if true, would entitle the plaintiff to relief."33 Data Key Partners v. Permira Advisors LLC, 2014 WI 86, ¶21 , 356 Wis. 2d 665 , 849 N.W.2d 693 . 34 Stuart v. Weisflog's Showroom Gallery, Inc., 2008 WI 86, ¶36 , 311 Wis. 2d 492 , 753 N.W.2d 448 (internal quotation marks and quoted source omitted).

2016Co. v. Easy PC Sols., LLC, 2016 WI App 9, ¶ 8 , 366 Wis. 2d 629 , 874 N.W.2d 585 .

2016Co. v. Easy PC Sols., LLC, 2016 WI App 9, ¶ 8 , 366 Wis. 2d 629 , 874 N.W.2d 585 .

2016Co., 197 Wis. 2d 365, 393 , 541 N.W.2d 753 (1995). ¶30 In sum, we follow our long-standing precedent that duty-to-defend cases are governed by the four-corners rule, with no exceptions.17 3.

2016Co., 197 Wis. 2d 365, 393 , 541 N.W.2d 753 (1995). ¶30 In sum, we follow our long-standing precedent that duty-to-defend cases are governed by the four-corners rule, with no exceptions.17 3.

2016Id. 12 No. 2014AP2484.awb without exceptions, in duty to defend cases for so long because it generally favors Wisconsin insureds."); majority op., ¶26 ("The four-corners rule ultimately favors insureds in another way."). ¶73 One has to wonder if the majority's absolutist application of the four-corners rule is as beneficial to insureds as the majority proclaims, then why is the insured losing here? ¶74 Its proffered concerns regarding the consideration of extrinsic facts are equally unpersuasive.

2016The majority conjures a scenario in which "this judicially-created burden" would "rewrite the contractual duty to defend to be triggered whenever any claim is made rather than only those claims covered under the actual policy terms." Id. ¶75 The majority's reasoning is misguided because allowing consideration of extrinsic facts in this case would not require Consolidated to imagine any claims other than those the plaintiff has already alleged.

2015Priesler, 360 Wis. 2d 129, ¶ 21 ; Sustache II, 311 Wis. 2d 548, ¶ 20 ; Doyle, 219 Wis. 2d at 284 n.3 (noting long line of cases indicating that courts are to make coverage decisions based on the allegations in the complaint); Professional Office Bldgs., 145 Wis. 2d at 580-82 ; Marks, 2015 WI App 44, ¶ 8 .

2015Priesler, 360 Wis. 2d 129, ¶ 21 ; Sustache II, 311 Wis. 2d 548, ¶ 20 ; Doyle, 219 Wis. 2d at 284 n.3 (noting long line of cases indicating that courts are to make coverage decisions based on the allegations in the complaint); Professional Office Bldgs., 145 Wis. 2d at 580-82 ; Marks, 2015 WI App 44, ¶ 8 .

2007But once Mitsubishi responded as they did, and everybody else got involved, that immediately changed the character of the District's involvement in this case as well." [21] Travelers did not claim an inability to pay the defense costs, nor did the trial court discuss that factor. [22] Moreover, were we to adopt the alternative approach of equitable subrogation discussed and rejected in Maryland Casualty Co. v. Nationwide Mutual Insurance Co., 81 Cal. App.4th 1082 , 97 Cal.Rptr.2d 374 (2000), Travelers' claim would still fail.

2007But once Mitsubishi responded as they did, and everybody else got involved, that immediately changed the character of the District's involvement in this case as well." [21] Travelers did not claim an inability to pay the defense costs, nor did the trial court discuss that factor. [22] Moreover, were we to adopt the alternative approach of equitable subrogation discussed and rejected in Maryland Casualty Co. v. Nationwide Mutual Insurance Co., 81 Cal. App.4th 1082 , 97 Cal.Rptr.2d 374 (2000), Travelers' claim would still fail.

2007Group, 226 Wis. 2d 23, 35-36 , 593 N.W.2d 852 (Ct. App. 1999); but see Baumann, 286 Wis. 2d 667, ¶¶ 17-18 .

2007Group, 226 Wis. 2d 23, 35-36 , 593 N.W.2d 852 (Ct. App. 1999); but see Baumann, 286 Wis. 2d 667, ¶¶ 17-18 .