811 S.E.2d 875
W. Va.2018Background
- On Sept. 13, 2013, Ricky Dolly's pickup, trailer, and an ATV he owned (being hauled on the trailer) were destroyed when an uninsured driver (Emily Cole) struck him; Dolly suffered property loss but no personal injury.
- Dolly's Erie auto policy provided $10,000 statutorily-mandated uninsured motorist (UM) property-damage coverage; Erie paid for the truck but denied UM coverage for the trailer and ATV based on policy exclusions.
- Dolly obtained a judgment against Cole for $19,420.72 and later amended his complaint to assert claims against Erie seeking (1) declaratory relief that Erie must pay UM coverage for the trailer and ATV and (2) bad-faith and UTPA claims against Erie.
- The circuit court granted Dolly declaratory relief, holding Erie must pay up to the statutory minimum UM limit ($10,000) for the trailer and ATV but is not required to provide UM coverage above that statutory minimum; the court stayed resolution of the bad-faith claims.
- Erie appealed the declaratory judgment and also challenged the circuit court’s earlier denial of its motion to dismiss Dolly’s bad-faith claims as time-barred.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether statute requires insurer to provide statutorily-mandated UM coverage for trailer and ATV damaged by an uninsured motorist | Dolly: UM statute mandates insurer pay all sums insured is "legally entitled to recover" up to statutory minimum; trailer and ATV are recoverable property so covered up to $10,000 | Erie: Policy exclusion plainly excludes trailers and ATVs from UM coverage, so insurer need not pay | Court: Statute controls; exclusions cannot eliminate statutorily-mandated minimum UM coverage — Erie must pay up to $10,000 (but may exclude amounts above statutory minimum) |
| Whether denial of Erie’s motion to dismiss bad-faith/UTPA claims is immediately appealable | Dolly: (implicit) denial is interlocutory and not ripe for appeal; factual issues remain about notice/when limitations ran | Erie: Seeks immediate review (relying on Rule 54(b)) of denial that its bad-faith claims were untimely | Court: Denial of motion to dismiss was interlocutory, not final or collateral; not properly before the Supreme Court on this appeal — remand for further proceedings |
Key Cases Cited
- Imgrund v. Yarborough, 199 W.Va. 187, 483 S.E.2d 533 (W.Va. 1997) (an "owned but not insured" exclusion cannot defeat statutorily mandated minimum UM coverage, though it may limit optional coverage above the minimum)
- Deel v. Sweeney, 181 W.Va. 460, 383 S.E.2d 92 (W.Va. 1989) (policy exclusions are valid only insofar as they do not conflict with the intent of the UM statutes)
- Boniey v. Kuchinski, 223 W.Va. 486, 677 S.E.2d 922 (W.Va. 2009) (an off-road ATV is not an "uninsured motor vehicle" under UM statute when the ATV itself is the alleged tortfeasor; clarified here to apply to whether an ATV counts as the uninsured motor vehicle)
- Blake v. State Farm Mut. Auto. Ins. Co., 224 W.Va. 317, 685 S.E.2d 895 (W.Va. 2009) (addressed liability coverage and property-in-possession exclusions for a borrowed trailer; did not involve mandatory UM coverage)