JEFFERSON CITY, Mo. -- Insurers must pay $200,000 for injuries a Perry County girl suffered from a treehouse fall even though the policyholder was in arrears on a premium payment at the time of the accident, the Missouri Supreme Court ruled Tuesday.

In a 6-1 decision, the court said the policy was still in effect despite the missed payment because the companies didn't send adequate notice of cancellation. Judge Stephen N. Limbaugh Jr., the lone dissenter, said the failure to pay on time should have invalidated the policy.

Albert Spradling III of Cape Girardeau, the attorney for Perry County Mutual Insurance Co. and FMH Mutual Insurance Co., said the decision marks a departure from precedent.

"I think they just rewrote part of the insurance law," Spradling said. "They added a condition to cancellation notices that wasn't there before."

Heather Blair was 5 years old on Oct. 21, 1998, when she fell from a treehouse at the Perry County trailer park where she lived. Blair fractured a vertebra in her neck.

Trailer park owner Aileen Fiedler had a liability insurance policy for one year of coverage ending April 3, 1999. However, Fielder was paying premiums on a quarterly basis and didn't make her Oct. 3, 1998, payment.

The court said the policy's terms clearly stated cancellation would be effective 10 days after issuance of a notice for nonpayment. In this instance, that was three days after the accident.

The girl's attorney, Matthew Devoti of St. Louis, said Blair has recovered but some of the effects of her injuries are permanent.

"Under the circumstances, she is doing well," he said.

mpowers@semissourian.com

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