Owners Insurance Company v. Betty Hughes
2013 U.S. App. LEXIS 6671
8th Cir.2013Background
- Hughes was a passenger in Mash's vehicle and was injured in a collision.
- Mash's liability policy had a $100,000 per-person limit.
- Hughes incurred medical costs exceeding $200,000.
- Hughes sought underinsured motorist coverage under her Owners policy after Mash paid $100,000.
- Owners filed a declaratory-judgment action contending Mash's vehicle was not underinsured or that a set-off would reduce benefits.
- The district court granted summary judgment for Owners; the court affirms on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Mash's vehicle is underinsured under Owners' policy | Hughes argues the definition yields ambiguity and could permit coverage | Mash's $100,000 limit is not 'less than' the policy's underinsured threshold | Not underinsured; definition is unambiguous and Mash's limit is not less than 100,000 |
| If underinsured, whether the set-off reduces Owners' liability to zero | If underinsured, Hughes contends the policy should provide coverage | Set-off could apply to reduce recovery | Not reached/denied because Mash's vehicle is not underinsured |
Key Cases Cited
- Rodriguez v. General Accident Insurance Co. of America, 808 S.W.2d 379 (Mo. banc 1991) (defined underinsured automobile and confirmed no coverage when not underinsured)
- Jones v. Mid-Century Ins. Co., 287 S.W.3d 687 (Mo. banc 2009) (acknowledged dicta in Rodriguez and discussed ambiguity principles)
- Merriam v. Nat’l Union Fire Ins. Co. of Pittsburgh, 572 F.3d 579 (8th Cir. 2009) (de novo review; state-law question governed by Missouri law)
- Aerotronics, Inc. v. Pneumo Abex Corp., 62 F.3d 1053 (8th Cir. 1995) (bound by Missouri Supreme Court decisions on substantive issues)