2025-0158-Appeal.
R.I.Jul 1, 2026Background
- Menge sued GEICO and MSAA after a 2013 rear-end accident allegedly caused serious injuries and economic losses. 1
- MSAA had issued Menge a 2013 Businessowners Coverage Form, while GEICO insured the Mathieus' vehicle involved in the accident. 2
- Menge asserted breach of contract, implied covenant, and statutory bad faith claims against both insurers. 3
- The Superior Court severed the bad faith claims and stayed discovery on them, and denied without prejudice Menge's motion to compel GEICO documents. 4
- MSAA and GEICO separately moved for summary judgment, and the hearing justice granted both motions. 5
- Menge appealed, arguing among other things that the policy copy was disputed and that he could sue GEICO directly. 6
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether MSAA was entitled to summary judgment on coverage 7 | Exhibit 2 was inaccurate; exhibit K showed coverage for the accident. | The 2013 policy excluded auto-related bodily injury. | MSAA won; the policy plainly excluded the claim. 8 |
| Whether GEICO could be sued directly 9 | He had rights under the Mathieus' policy and the release did not bar him. | Section 27-7-2 bars direct suits absent an exception or assigned rights. | GEICO won; direct action was barred. 10 |
| Whether severance and denial of compulsion remained live 11 | Severance and discovery rulings violated due process. | No claim survived, so those rulings were moot. | Court declined review; those issues were moot. 12 |
Key Cases Cited
- Riccitelli v. Town of North Providence, 308 A.3d 977 (R.I. 2024) (de novo review of summary judgment 13)
- Bayview Loan Servicing, LLC v. Providence Business Loan Fund, Inc., 200 A.3d 153 (R.I. 2019) (summary judgment proper only when no genuine dispute of material fact exists 14)
- Josephson, LLC v. Affiliated FM Insurance Company, 314 A.3d 954 (R.I. 2024) (insurance policies are contracts interpreted under ordinary contract rules 15)
- Koziol v. Peerless Insurance Company, 41 A.3d 647 (R.I. 2012) (plain language controls unless the policy is ambiguous 16)
- Zarrella v. Minnesota Mutual Life Insurance Company, 824 A.2d 1249 (R.I. 2003) (bad faith claims require entitlement to recover on the contract first 17)
- Skaling v. Aetna Insurance Company, 799 A.2d 997 (R.I. 2002) (supports severing bad faith claims from contract claims 18)
- Asermely v. Allstate Insurance Company, 728 A.2d 461 (R.I. 1999) (discusses insurer exposure beyond policy limits after settlement/judgment 19)
- Marr Scaffolding Co., Inc. v. Fairground Forms, Inc., 682 A.2d 455 (R.I. 1996) (courts may examine the parties' intent regarding a release 20)
- Estate of Cassiere v. Cassiere, 246 A.3d 391 (R.I. 2021) (nonmovant must produce specific evidence to defeat summary judgment 21)
- West Warwick Housing Authority v. RI Council 94, AFSCME, AFL-CIO, 277 A.3d 707 (R.I. 2022) (appellate review is limited to the certified record 22)
- Richmond Square Capital Corp. v. Mittleman, 773 A.2d 882 (R.I. 2001) (undeveloped issues are waived on appeal 23)
- Capital Video Corporation v. Bevilacqua, 338 A.3d 333 (R.I. 2025) (an issue is moot when the court's judgment has no practical effect 24)
- Evoqua Water Technologies LLC v. Moriarty, 334 A.3d 429 (R.I. 2025) (same mootness principle 25)