Shelter Mutual Ins. Co. v. Dale
| Docket Number: | 2004-CA-01023-SCT | |
| Oral Argument: | 07-20-2005 | |
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| Supreme Court: | Opinion Link Opinion Date: 10-27-2005 Opinion Author: Dickinson, Jess H. Holding: Reversed and Remanded |
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| Additional Case Information: |
Topic: Insurance - Exclusion of punitive damages by insurer - Section 63-15-43(2)(b) Judge(s) Concurring: Smith, C.J., Waller and Cobb, P.JJ., Carlson and Randolph, JJ Non Participating Judge(s): Diaz, J., Dissenting Author : Graves, J., Dissent Joined By : Easley, J Procedural History: Admin / Agency Judgment Nature of the Case: CIVIL - STATE BOARDS AND AGENCIES |
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| Trial Court: |
Date of Trial Judgment: 04-19-2004 Appealed from: Hinds County Chancery Court Judge: Patricia D. Wise Disposition: Mississippi law does prevent Shelter from excluding coverage for Case Number: G2003-572 W/4 |
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| Party Name: | Attorney Name: | |||
| Appellant: | SHELTER MUTUAL INSURANCE COMPANY
AND SHELTER GENERAL INSURANCE
COMPANY |
JOHN C. HENEGAN, KAREN LIVINGSTON-WILSON, PATRICK RYAN BECKETT |
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| Appellee: | GEORGE DALE, COMMISSIONER OF INSURANCE, STATE OF MISSISSIPPI, AND MISSISSIPPI DEPARTMENT OF INSURANCE | PETER W. CLEVELAND, MARY JO WOODS |
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| Topic: | Insurance - Exclusion of punitive damages by insurer - Section 63-15-43(2)(b) |
| Summary of the Facts: | Shelter Mutual Insurance Company and Shelter General Insurance Company requested approval by the Mississippi Department of Insurance of amendatory endorsements to their Mississippi automobile insurance private passenger policies. The purpose of the amendments was to exclude any liability under the policies for damages assessed against an insured in the form of punitive damages. Although DOI Commissioner George Dale initially approved both amendatory endorsements, he reversed his position and withdrew approval. After requesting a hearing to appeal the withdrawal of approval, Shelter waived the requirement of a hearing and unsuccessfully appealed to the Chancery Court of the First Judicial District of Hinds County. Shelter appeals. |
| Summary of Opinion Analysis: | At the heart of the decision of the chancery court is the presumption that the language of section 63-15-43(2)(b) requires coverage for punitive damages. The subject matter of section 63-15-43(2)(b) is bodily injury, death and destruction of property. The statute requires an insurer to pay all sums for those losses, subject to specific limits set by the Legislature, with no mention of “punitive damages” within those limits. Furthermore, interpreting the language of section 63-15-43(2)(b) to include unspecified damages (including punitive damages) would render section 63-15-43(7) a nullity, insofar as it specifically allows an insurance company to provide additional coverage which “shall not be subject to the provisions of this chapter.” Where a statute enumerates and specifies the subject or things upon which it is to operate, it is to be construed as excluding from its effect all those not expressly mentioned or under a general clause. Since the statute at issue enumerates and specifies the subject or things upon which it is to operate, that is, it specifically lists bodily injury, death and destruction of property, it is to be construed as excluding from its effect all those not expressly mentioned, that is, punitive damages. Therefore, Mississippi law does not prevent Shelter from excluding coverage for punitive damages by amendatory endorsement to its automobile liability policies. Both the Commissioner and the chancellor erred in concluding otherwise. |
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