Farm Bureau Mutual Insurance v. Eisenman
286 P.3d 185
Idaho2012Background
- Farm Bureau filed a declaratory judgment action to determine whether the Estate is entitled to underinsured motorist (UIM) damages under Eisenman's policy.
- Eisenman was killed by a drunk driver; the driver’s liability policy paid $50,000, which was less than Eisenman’s UIM limit.
- The Heirs were not named insureds on the Policy and did not live with Eisenman; the Estate commenced a wrongful death claim under Idaho law (I.C. § 5-311).
- The district court granted summary judgment for the Estate/heirs, holding wrongful death damages are recoverable and covered under the Policy’s UIM provision.
- The Policy provides that Farm Bureau pays damages an insured is legally entitled to recover from an underinsured motorist; the Estate seeks damages for wrongful death under I.C. § 5-311.
- The court held that the Estate and Heirs are not insureds under the Policy and that wrongful death damages do not flow under the UIM provision; the district court’s judgment was reversed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does UIM coverage extend to heirs/estate when they are not insureds? | Estate asserts it may recover under the wrongful death claim and substitute for Eisenman’s rights. | Farm Bureau argues Heirs/Estate are not insureds and cannot recover under the UIM provision. | No; Heirs/Estate not insureds, thus no UIM recovery. |
| Is estoppel available to bar Farm Bureau from contesting coverage? | Estate claims estoppel due to prior payments under other policy provisions. | Farm Bureau denies estoppel; prior payments do not bind future coverage decisions. | Estoppel did not apply. |
| If not prevailing on UIM, can the Estate recover attorney fees under Idaho Code § 41-1839? | Estate seeks fees for failure to pay wrongful death damages timely. | Fees follow prevailing party status; Estate did not prevail on appeal. | No attorney fees awarded. |
| Does the Estate have a contractual right to recover under Coverage P-1 despite not recovering wrongful death damages? | Personal representative may stand in decedent’s shoes to recover contract benefits under Coverage P-1. | Coverage P-1 pays only damages the insured could recover; death abates tort claims. | Estate cannot recover wrongful death damages under P-1; however, analysis of contract rights in other respects is acknowledged. |
Key Cases Cited
- Evans v. Twin Falls Cnty., 118 Idaho 210, 796 P.2d 87 (1990), 118 Idaho 210 (Idaho 1990) (pain and suffering abates upon death; tort-based damages generally do not survive)
- Whitley v. Spokane & Inland Ry. Co., 23 Idaho 642, 132 P. 121 (1913), 23 Idaho 642 (Idaho 1913) (heirs may recover in wrongful death actions; estate may not vest separate rights)
- Castorena v. Gen. Elec., 149 Idaho 609, 238 P.3d 209 (2010), 149 Idaho 609 (Idaho 2010) ( wrongful death is a separate cause of action distinct from decedent's prior claims)
- Russell v. Cox, 65 Idaho 534, 148 P.2d 221 (1944), 65 Idaho 534 (Idaho 1944) (wrongful death claim does not benefit the estate)
- Arreguin v. Farmers Ins. Co. of Idaho, 145 Idaho 459, 180 P.3d 498 (2008), 145 Idaho 459 (Idaho 2008) (ambiguous insurance policy language construed in favor of insured)
- Talbot v. Farmers Ins. Co. of Idaho, 133 Idaho 428, 987 P.2d 1047 (1999), 133 Idaho 428 (Idaho 1999) (ambiguity in policy language interpreted for the insured)
- Farm Bureau Mut. Ins. Co. v. Schrock, 150 Idaho 817, 252 P.3d 98 (2011), 150 Idaho 817 (Idaho 2011) (case cited regarding contract-based indemnity interpretations)