Allied Property and Casualty Insurance Company v. Bourisaw
4:16-cv-01486
E.D. Mo.Jul 31, 2017Background
- On July 17, 2014, Karin Bourisaw was injured as a passenger in a vehicle owned by Allied’s insured, Penny Carlyon; Bourisaw contends the other driver (the tortfeasor) caused the accident.
- The tortfeasor’s liability policy limit was $100,000; Bourisaw recovered the full $100,000 from that policy.
- Carlyon’s Allied policy provided underinsured motorist (UIM) coverage with a $100,000 limit and defined an “underinsured motor vehicle” as one whose bodily injury liability limits are "less than the limit of liability for this coverage."
- Allied sought a declaratory judgment that Bourisaw is not entitled to UIM benefits because the tortfeasor’s $100,000 limit is not "less than" Allied’s $100,000 UIM limit; Bourisaw counterclaimed for coverage.
- No response to Allied’s summary judgment motion was filed by Bourisaw after an extension; the court treated the facts as undisputed.
- The court granted Allied’s motion, holding the tortfeasor’s policy was not an underinsured motor vehicle under the policy language and dismissed Bourisaw’s counterclaim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the tortfeasor’s vehicle qualifies as an “underinsured motor vehicle” under the Policy’s definition | Tortfeasor’s $100,000 liability limit is not "less than" Allied’s $100,000 UIM limit, so no UIM coverage | Bourisaw argued she was entitled to UIM coverage after exhausting tortfeasor’s policy (no opposing brief distinguishing policy language was filed) | Court held no UIM coverage; limits are equal so the vehicle is not an underinsured motor vehicle |
Key Cases Cited
- Rodriguez v. General Accident Ins. Co. of Am., 808 S.W.2d 379 (Mo. 1991) (Missouri Supreme Court held a tortfeasor with policy limits equal to the insured’s UIM limit is not an underinsured motor vehicle under identical policy language)
- Owners Ins. Co. v. Hughes, 712 F.3d 392 (8th Cir. 2013) (Eighth Circuit applied same reasoning: equal limits do not satisfy a policy definition requiring limits to be "less than" the UIM limit)