231 N.C. App. 558
N.C. Ct. App.2014Background
- On April 15, 2009, 16‑year‑old Harley Jessup was injured in a vehicle accident; medical expenses claimed totaled $81,087.44. Randall Jessup (driver) tendered $30,000 in liability coverage.
- Harley’s underinsured motorist (UIM) claim was made against a UIM policy issued to her paternal grandfather, Thurman Jessup, by North Carolina Farm Bureau.
- Plaintiff insurer filed a declaratory judgment action asking the court to rule Harley was not covered by Thurman’s policy; insurer moved for summary judgment.
- Defendants (Harley through guardian ad litem, Harley’s father Reggie, and Thurman) moved to change venue from Wake County to Chatham or Randolph; the trial court denied the motion.
- The trial court granted summary judgment for the insurer, concluding Harley was not a “resident of [Thurman’s] household” and therefore not a “family member” insured under the UIM policy.
- On appeal, the Court of Appeals affirmed denial of the venue change but reversed the summary judgment, holding Harley was a resident of Thurman’s household and thus an insured under the UIM policy.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether trial court abused discretion by denying change of venue from Wake to Chatham or Randolph | Wake County is proper and convenient for plaintiff; no necessity to transfer | Transfer warranted for convenience of witnesses and promotion of justice | Denial affirmed — no abuse of discretion shown |
| Whether Harley was a “family member” (i.e., “related by blood” and a “resident of [Thurman’s] household”) under the UIM policy | Harley was not a resident of Thurman’s household on the accident date; no coverage | Harley was a resident of Thurman’s household based on continuous integrated family relationship, Thurman’s financial support, shared use of property, guardianship, and mutual intent | Reversed summary judgment; Harley was a resident of Thurman’s household and an insured under the policy |
Key Cases Cited
- United Services Automobile Assn. v. Simpson, 126 N.C. App. 393 (discretionary standard for change of venue)
- Howerton v. Arai Helmet, Ltd., 358 N.C. 440 (summary judgment standard and evidence viewed for nonmoving party)
- Fonvielle v. Insurance Co., 36 N.C. App. 495 (ambiguous policy terms construed in favor of coverage)
- Davis v. Maryland Casualty Co., 76 N.C. App. 102 (minor may be resident of more than one household; integrated family relationship analysis)
- Great American Ins. Co. v. Allstate Ins. Co., 78 N.C. App. 653 (flexible meaning of "resident"; intent and facts create material issue for finder of fact)