Matter of J.T.N.
2011 ND 231
| N.D. | 2011Background
- Junds sued Johnnie B’s Bar & Grill and Ransom County after Tracy Jund, a Ransom County Deputy, was injured in a collision with an underinsured motor vehicle driven by Shane Reinhardt.
- Junds alleged Reinhardt’s liability and that Ransom County, as an insured pool member of the North Dakota Insurance Reserve Fund, provided underinsured motorist coverage up to $250,000.
- For summary judgment, the parties stipulated Reinhardt’s vehicle was underinsured; Junds recovered $100,000 from Reinhardt’s insurer and $109,680.91 in WSI benefits; total compensatory damages exceeded the combined recoveries and the $250,000 UIM limit.
- The district court held N.D.C.C. § 26.1-40-15.4(1) ambiguous and construed the reduction to come from the Junds’ total compensatory damages for WSI benefits, not from the $250,000 UIM limit.
- The court granted summary judgment in favor of the Junds; Ransom County appealed, and the Supreme Court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Starting point for reduction under 26.1-40-15.4(1) | Junds: reduce from total damages, not from UIM limit. | Ransom County: reduce from UIM limit, not total damages. | Reduction from total compensable damages. |
| Is 26.1-40-15.4(1) ambiguous | Ambiguity requires interpretation in favor of insured. | Statute has clear meaning. | Statute is ambiguous; context and history apply. |
| Purpose of underinsured motorist statute | Aim to make insured whole; offset only to avoid duplication. | Offset should limit recovery to UIM policy amount. | Purpose supports offset from total damages to avoid duplication. |
Key Cases Cited
- DeCoteau v. Nodak Mut. Ins. Co., 2000 ND 3 (ND 2000) (excess coverage to make insured whole; definitions and offsets explained)
- Sandberg v. American Family Ins., 722 N.W.2d 359 (ND 2006) (insurer's right to WSI offset and general reduction mechanics)
- Score v. American Fam. Mut. Ins. Co., 538 N.W.2d 206 (ND 1995) (underinsured policy interpretation context)
- North River Ins. Co. v. Tabor, 934 F.2d 461 (3d Cir. 1991) (background on underinsured concepts referenced in ND cases)