Wise v. United Services Auto. Ass'n
| Docket Number: | 2002-CA-01020-SCT Linked Case(s): 2002-CA-01020-SCT |
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| Supreme Court: | Opinion Link Opinion Date: 10-09-2003 Opinion Author: Carlson, J. Holding: Affirmed |
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| Additional Case Information: |
Topic: Insurance - Uninsured motorist coverage - Per accident limit - Bad faith Judge(s) Concurring: Pittman, C.J., Smith, P.J., Waller and Cobb, JJ. Non Participating Judge(s): Diaz, J. Dissenting Author : Easley and Graves, JJ. Dissenting Author : McRae, P.J. Dissent Joined By : Joined in Part by Easley, J. Procedural History: Summary Judgment Nature of the Case: CIVIL - INSURANCE |
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| Trial Court: |
Date of Trial Judgment: 04-12-2002 Appealed from: Hinds County Circuit Court Judge: W. Swan Yerger Disposition: Appellee was granted summary judgment. Case Number: 251-97-63CIV |
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| Note: | PITTMAN, C.J., SMITH, P.J., WALLER AND COBB, JJ., CONCUR. EASLEY AND GRAVES, JJ., DISSENT WITHOUT SEPARATE WRITTEN OPINION. McRAE, P.J., DISSENTS WITH SEPARATE WRITTEN OPINION JOINED IN PART BY EASLEY, J. DIAZ, J., NOT PARTICIPATING. | |
| Party Name: | Attorney Name: | |||
| Appellant: | Joseph Wise, Charlene C. Wise and Elizabeth Ramsey Wise, Minor, by and through Her Mother and Next Friend, Charlene C. Wise |
JENNIFER INGRAM WILKINSON
CARROLL H. INGRAM
MARCUS ALFRED TREADWAY
THOMAS G. LILLY |
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| Appellee: | United Services Automobile Association | JOSEPH W. McDOWELL |
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| Topic: | Insurance - Uninsured motorist coverage - Per accident limit - Bad faith |
| Summary of the Facts: | While crossing the street, Joseph Wise and his wife, Charlene, were struck by a pickup truck driven by Alfred Aswell and owned by Steven Bostic. Their daughter, Elizabeth, witnessed the accident. Before the collision, Aswell and Bostic had been patrons at the bar in the former Ramada Inn Coliseum. At the time of the accident, Joseph Wise had an insurance policy issued by United Services Automobile Association insuring three separate vehicles with uninsured motorist bodily injury limits of $100,000 per person and $200,000 per accident. Aswell was insured under Bostic's policy with USF&G, which provided a single liability limit of $300,000. The Wises filed suit against Aswell, Bostic, Steel Service Corporation (Aswell's employer), Peoples Security Life Insurance Company, Inc. (owner of the Ramada Coliseum bar), JMH Operating Company, Inc. and American General Hospitality, Inc. (operators of the bar). The Wises settled their claims against Bostic for the full amount of his $300,000 single per accident limit USF&G policy covering his vehicle. After the settlement, the Wises reduced the original demand made upon USAA for the stacked UM/UIM per accident limit of $600,000, since more than one person suffered injuries, to $300,000. The Wises also settled their claims against Steel Service for $4,000. After the Wises settled their claims against the bar defendants, the amount of which has not been disclosed due to a confidentiality agreement, they informed USAA that the amount of the settlement exceeded USAA's UM coverage of $600,000. However, because they had not been fully compensated for their injuries, the Wises continued to seek $300,000 in uninsured motorist benefits from USAA. Aswell, who had no insurance coverage in his name, still remains a defendant in the case. USAA was eventually joined as a defendant. USAA filed a motion for summary judgment which the court granted, holding there was no UM/UIM coverage claim available to the Wises. The court certified its order as a final judgment, and the Wises appeal. |
| Summary of Opinion Analysis: | Issue 1: Per person limit The Wises argue that the court improperly adopted USAA's argument that the tortfeasor vehicle was not underinsured by comparing the liability limit of the tortfeasor's policy with the per person limit of the injured insureds' UM coverage rather than the per accident limit of the injured insureds' UM coverage because there were two or more injured insureds. Using North Carolina cases as guidance, Bostic's single liability limit of $300,000 is equivalent to a per accident limit. Comparing that limit to the per accident limit of the Wises' USAA policy of $600,000, Bostic's vehicle should be considered an underinsured motor vehicle pursuant to statute. Therefore, the Wises are entitled to uninsured motorists benefits. The Wises’ USAA policy provides that uninsured motor coverage will be paid only after the limits of liability under any applicable liability bonds or policies, or deposits of cash or securities have been exhausted by payment of judgments or settlements. Accordingly, USAA is entitled to offset its UM payments by any judgments and settlements paid to the insureds. Therefore, the court was correct in determining that the Wises no longer have any uninsured motorist claims available to them since they have admitted that they have been paid, through settlements, an amount which exceeds their available uninsured motorist benefits. Issue 2: Bad faith Because USAA had a legitimate and arguable basis in law for denying the Wises' claim for uninsured motorist benefits as discussed above, the judge was correct in determining the Wises did not have a valid bad faith claim. |
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