Karen Robinson v. Allied Property and Casualty Insurance Company
2012 Iowa Sup. LEXIS 73
Iowa2012Background
- Robinson injured in a June 15, 2004 car crash, with a UIM policy from Allied providing a two-year filing deadline.
- Robinson filed a tort action against State Farm in October 2005, within the policy deadline, and negotiations occurred thereafter.
- Robinson’s medical condition gradually worsened; surgical intervention occurred in 2007, after the two-year deadline had expired.
- Allied denied the UIM claim as untimely on August 13, 2008; Robinson settled with State Farm in August 2008.
- Robinson filed the UIM action against Allied on May 13, 2010, about six years after the accident.
- Lower courts disagreed on whether the two-year deadline was reasonable under the circumstances; the supreme court granted review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether two-year UIM deadline is enforceable | Robinson: deadline unreasonable due to late injury disclosure | Allied: two-year deadline aligns with tort limitations and is reasonable | Enforceable as a matter of law |
| Does matching the two-year tort statute render the deadline per se reasonable | Faeth/Nicodemus require case-specific reasonableness | Two-year match to 614.1(2) is inherently reasonable | Per se reasonable to match two-year tort deadline |
| Whether Faeth and Nicodemus require invalidation based on discovery of damages | Disallow enforcement until full damages are known | Contractual deadline not contingent on discovery; aligns with statute | Not invalidated; doctrine not applied to defeat the contract |
| Policy and public interest considerations about freedom to contract | Dissent: enforcement undermines true UIM protection and increases litigation | UIM contracts are enforceable; market should shape terms; public policy favors clarity | UIM two-year deadline enforceable; freedom to contract supported |
Key Cases Cited
- Douglass v. Am. Family Mut. Ins. Co., 508 N.W.2d 665 (Iowa 1993) (two-year UIM/UM deadlines may be valid when they reflect tort limitations)
- Faeth v. State Farm Mut. Auto. Ins. Co., 707 N.W.2d 328 (Iowa 2005) (invalidates two-year clause as unreasonable in particular circumstances)
- Nicodemus v. Milwaukee Mutual Insurance Co., 612 N.W.2d 785 (Iowa 2000) (reasonableness standard for UIM/UM contract limitations; per se unreasonable when burdens claimant can't bring UIM claim)
- Hamm v. Allied Mut. Ins. Co., 612 N.W.2d 775 (Iowa 2000) (enforces symmetry between tort and UIM/UM limitations; supports two-year contract limit)
- LeBeau v. Dimig, 446 N.W.2d 800 (Iowa 1989) (two-year limit begins at date of accident for personal injury actions)