Jeffcoat v. American Nat. Prop. and Cas. Co.


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Docket Number: 2003-CA-02466-COA
Oral Argument: 03-16-2005
 

 

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Court of Appeals: Opinion Link
Opinion Date: 06-21-2005
Opinion Author: GRIFFIS, J.
Holding: Affirmed

Additional Case Information: Topic: Insurance - Uninsured motorist coverage - Offset clause
Judge(s) Concurring: KING, C.J., BRIDGES AND LEE, P.JJ., IRVING, MYERS, CHANDLER, BARNES AND ISHEE, JJ.
Procedural History: Summary Judgment
Nature of the Case: CIVIL - INSURANCE

Trial Court: Date of Trial Judgment: 10-08-2003
Appealed from: WASHINGTON COUNTY CIRCUIT COURT
Judge: Richard Smith
Disposition: AMERICAN NATIONAL PROPERTY AND CASUALTY COMPANY’S MOTION FOR SUMMARY JUDGMENT IS GRANTED.
Case Number: CI2002-A360

  Party Name: Attorney Name:  
Appellant: LINDA G. JEFFCOAT




H. L. MERIDETH, JR.



 

Appellee: AMERICAN NATIONAL PROPERTY AND CASUALTY COMPANY JAN F. GADOW, W. WRIGHT HILL  

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Topic: Insurance - Uninsured motorist coverage - Offset clause

Summary of the Facts: Linda Jeffcoat was involved in an automobile accident. Jeffcoat was operating an automobile owned by Patricia Montgomery, with Montgomery riding as a passenger, when they were struck by a vehicle owned and operated by Steven Duncan. It is undisputed that Duncan was solely liable for the accident and subsequent damages. Duncan had liability insurance coverage with State Farm Mutual Automobile Insurance Company in the amount of $25,000 per person and $50,000 per occurrence. State Farm voluntarily paid its $25,000 coverage limits to Jeffcoat, who released Duncan and State Farm from all claims, but reserved all claims as to all other parties. Duncan had liability insurance coverage with State Farm Mutual Automobile Insurance Company in the amount of $25,000 per person and $50,000 per occurrence. State Farm voluntarily paid its $25,000 coverage limits to Jeffcoat, who released Duncan and State Farm from all claims, but reserved all claims as to all other parties. Jeffcoat was insured pursuant to the uninsured motorist coverage of her own automobile policy issued by USAA, which provided underinsured motorist coverage in the amount of $600,000 after stacking for the two vehicles included in the policy. USAA voluntarily paid its $600,000 coverage to Jeffcoat and waived its right of subrogation. USAA did not claim an offset for the amount paid by State Farm. Jeffcoat was also insured pursuant to the underinsured motorist provision of a policy of insurance issued by American National to Montgomery, in the amount of $10,000 per person. Jeffcoat’s medical expenses, damages for permanent injuries, loss of wage earning capacity, and pain and suffering exceed $635,000. American National filed a complaint for declaratory relief, contending that it was entitled to an offset of $25,000, which is the amount paid pursuant to Duncan’s liability coverage. American National argues that after off-setting Duncan’s liability payment of $25,000, American National is not responsible for and does not owe Jeffcoat any underinsured motorist coverage benefits under the American National policy. American National filed a motion for summary judgment which was granted. Jeffcoat appeals.

Summary of Opinion Analysis: Jeffcoat argues that the offset language in American National’s policy conflicts with the Uninsured Motorist Act as well as with the coverage language in the policy. In deference to the purposes of the Uninsured Motorist Act, the court will reject a carrier’s offset language if it attempts to reduce the amount received by the uninsured motorist insured to less than the minimum uninsured motorist coverage required by statute or if it attempts to provide an offset for payments made to parties other than the injured uninsured motorist insured. An application of American National’s offset clause will not reduce the amount of bodily injury proceeds received by Jeffcoat to less than the minimum uninsured motorist coverage required by statute. Jeffcoat received $600,000 from USAA and has therefore already received far more than the minimum $10,000 contracted for and required by statute. Additionally, American National’s offset clause does not provide an offset for sums paid to parties other than Jeffcoat. Thus, based on its policy language, it appears that American National is entitled to the claimed offset. Therefore, the court did not err in granting American National’s motion for summary judgment.


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