Case Information
*1 Rule 23 order filed NO. 5-09-0389
July 14, 2010;
Motion to publish granted IN THE
July 29, 2010.
APPELLATE COURT OF ILLINOIS FIFTH DISTRICT
________________________________________________________________________ LESLIE HANSON, as the Administrator of the ) Appeal from the
Estate of Brian R. Waters, Deceased, ) Circuit Court of
) Madison County.
Plaintiff-Appellant, )
)
v. ) No. 08-MR-658
)
LUMLEY TRUCKING, LLC, and )
GENERAL CASUALTY COMPANY OF )
ILLINOIS, ) Honorable
) Clarence W. Harrison II, Defendants-Appellees. ) Judge, presiding.
________________________________________________________________________
JUSTICE STEWART delivered the opinion of the court: Leslie Hanson, as the administrator of the estate of Brian R. W aters, deceased (the estate), appeals from the entry of a judgment on the pleadings in favor of the defendant insurance company, General Casualty Company of Illinois (General Casualty). The trial court determined that the insurance policy issued to the defendant, Lumley Trucking, LLC (Lumley), unambiguously barred the stacking or aggregation of underinsured-motorist (UIM) coverage because the declarations page of the insurance policy listed the UIM coverage only once. On appeal, Hanson argues that the trial court erred in ruling that the policy prohibits the stacking of the UIM coverage. We affirm.
BACKGROUND In December 2007, Brian W aters, while employed by Lumley, was involved in a motor vehicle accident with Dale Phillips. Waters died as a result of injuries sustained in the accident. Phillips's vehicle was insured by Progressive Insurance Company (Progressive) with liability limits of $50,000 per person and $100,000 per accident. After the accident, *2 Progressive paid the estate its policy limit of $50,000 to settle the estate's claim against Phillips.
On November 19, 2008, the estate filed a complaint for declaratory relief, alleging that the insurance policy that General Casualty had issued to Lumley, which covered the vehicle Waters was driving at the time of the accident, allowed the estate to recover up to $1 million. The estate argued that the policy provided a $40,000 limit of liability for its UIM coverage for each of the 25 vehicles covered by the policy but did not prohibit the stacking or aggregation of that coverage. Hence, the estate argued that the policy provided UIM coverage in the amount of $40,000 times 25 vehicles for a total of $1 million. The defendants filed an answer and a counterclaim, seeking an adjudication that the policy did not allow its UIM coverage to be stacked. Additionally, the defendants alleged that no UIM coverage applied because the estate had already been paid $50,000, which was $10,000 more than the limit of UIM coverage under the General Casualty policy for the vehicle involved in the accident.
On March 6, 2009, General Casualty filed a motion for a judgment on the pleadings in its favor. The estate filed a response to that motion and requested a judgment on the pleadings in its favor.
On June 23, 2009, the trial court entered an order finding that the case was "readily subject to" a judgment on the pleadings since neither party had identified any disputed fact. The court found that the "determinative issue" was whether the UIM coverage for the 25 vehicles in the General Casualty policy could stack in order to provide the estate with $1 million in UIM coverage. The court ruled as follows:
"The General Casualty policy contains a single line on its declaration page setting forth a shorthand identification of '46' (which cross-references a set of 25 vehicles). While this declaration may be 'tantamount' to many things (as plaintiff *3 argues), it is facially a single line with a single identification of a single amount of UIM coverage. Simply because plaintiff can suggest creative possibilities for its meaning does not render this policy ambiguous." (Emphasis in original.) The trial court ruled that the declarations page was not ambiguous and created no conflict with other provisions of the policy. The court found that the UIM endorsement specifically incorporated the unambiguous declarations sheet and specifically prohibited stacking. Accordingly, the court granted General Casualty's motion for a judgment on the pleadings and denied the estate's motion for a judgment on the pleadings. This appeal followed.
ANALYSIS
The parties do not raise any issues of fact but argue only about how to interpret the
insurance policy. The only issue is whether the policy, properly construed, allows the
stacking of the UIM coverage, a question of law for which our review is
de novo
.
Hobbs v.
Hartford Insurance Co. of the Midwest
,
"Whether an ambiguity exists turns on whether the policy language is subject to more than one reasonable interpretation. Although 'creative possibilities' may be suggested, only reasonable interpretations will be considered. Bruder v. Country Mutual Insurance Co. , 156 Ill. 2d 179, 193 (1993). Thus, we will not strain to find an ambiguity where none exists." Hobbs ,214 Ill. 2d at 17 .
Policy terms that limit an insurer's liability are to be liberally construed in favor of the
*4
insured, but this rule of construction comes into play only if the policy language is
ambiguous.
Hobbs
,
The estate acknowledges that most cases in which the court has found that an
insurance policy allows stacking have done so on the basis that the language of the policy
was ambiguous because the declaration sheet listed more than one vehicle with separate
coverages and separate premiums.
E.g.
,
Johnson v. Davis
,
The pertinent provisions of the General Casualty policy at issue in this case are as follows: Under "ITEM TWO–SCHEDULE OF COVERAGES AND COVERED AUTOS," there is a columnar list of the coverages, covered autos, limits, and premiums. In the row associated with "UNDERINSURED MOTORISTS," the number "46" appears in the column assigned to covered autos. Under the column heading "LIMIT–THE MOST WE W ILL PAY FOR ANY ONE ACCIDENT OR LOSS" is the figure "$40,000." The estate refers us to the "TRUCKERS COVERAGE FORM ," in which the number "46" applies to "Specifically Described 'Autos,' " which are further described as "[o]nly those 'autos' described in Item Three of the Declarations for which a premium charge is shown." "ITEM THREE" is a *5 schedule of the 25 covered autos, in which vehicle number "022," the one that the decedent was driving at the time of the accident, is listed. In the "ITEM THREE" schedule, the columns referencing vehicle 022 indicate the amounts associated with the various kinds of premiums, coverages, and deductibles applicable to that vehicle: $2,251 for liability, $9 for "UM-UIM" (uninsured-underinsured) coverage, $248 for comprehensive coverage, $1,207 for collision coverage, and $1,000 each for the deductibles for the comprehensive and collision coverage.
The estate argues that because General Casualty chose to reference the covered vehicles in item two of the declaration sheet by the designation 46, which is a shorthand reference to 25 separately listed vehicles, that designation creates an ambiguity in the policy. The estate concludes that by using the number 46 to reference all the 25 covered vehicles, it should be allowed to add or stack the $40,000 UIM coverage for vehicle 022 to the $40,000 UIM coverage for each of the remaining 24 vehicles covered under the policy. This argument is confusing to follow because it is neither a reasonable interpretation of the policy language nor supported by any case law.
"The touchstone when determining whether an ambiguity exists regarding an
insurance policy is whether the relevant portion is subject to more than one reasonable
interpretation, not whether creative possibilities can be suggested."
Pekin Insurance Co. v.
Estate of Goben
,
We agree with the trial court that the ambiguity the estate urges us to find does not *6 exist. That is particularly obvious in light of the policy's inclusion of an antistacking clause which is clear and unambiguous. In the section of the policy entitled "Limit of Insurance," the policy provides as follows: "Regardless of the number of covered 'autos,' 'insureds,' premiums paid, claims made[,] or vehicles involved in the 'accident,' the most we will pay for all damages resulting from any one 'accident' is the Limit of insurance for Underinsured Motorist Coverage shown in this endorsement." Since the UIM coverage is listed as $40,000 only one time, there is no reasonable way to interpret the policy as allowing the estate to stack the coverage for all the covered vehicles for the unfortunate injuries and death that resulted from this accident.
Our ruling in this regard is firmly supported by the case law. In
Bruder v. Country
Mutual Insurance Co.
,
The case law since
Bruder
has followed the same line of reasoning when considering
*7
whether to allow the stacking of uninsured- or underinsured-motorist coverage. In
Estate of
Goben
, the court relied upon the
Bruder
decision and found that, because the UIM coverage
was set forth two times, once for each covered vehicle, there were two possible
interpretations of the policy, which required the policy to be strictly construed against the
insurer, so that stacking was allowed.
Estate of Goben
,
CONCLUSION For all the reasons stated, we affirm the trial court's order entering a judgment in favor of General Casualty.
Affirmed.
GOLDENHERSH, P.J., and WEXSTTEN, J., concur.
NO. 5-09-0389
IN THE APPELLATE COURT OF ILLINOIS FIFTH DISTRICT
___________________________________________________________________________________ LESLIE HANSON, as the Administrator of the ) Appeal from the
Estate of Brian R. Waters, Deceased, ) Circuit Court of
) Madison County.
Plaintiff-Appellant, )
)
v. ) No. 08-MR-658
)
LUMLEY TRUCKING, LLC, and )
GENERAL CASUALTY COMPANY OF )
ILLINOIS, ) Honorable
) Clarence W. Harrison II, Defendants-Appellees. ) Judge, presiding.
___________________________________________________________________________________ Rule 23 Order Filed: July 14, 2010
Motion to Publish Granted: July 29, 2010
Opinion Filed : July 29, 2010
___________________________________________________________________________________ Justices : Honorable Bruce D. Stewart, J.
Honorable Richard P. Goldenhersh, P.J., and
Honorable James M. Wexstten, J.,
Concur ___________________________________________________________________________________ Attorney David E. Leefers, Leefers Law Office, 210 North West Street, Jacksonville, IL for
Appellant
___________________________________________________________________________________ Attorney Michael J. Bedesky, Reed, Armstrong, Gorman, Mudge & Morrissey, P.C., 115 for North Buchanan, P.O. Box 368, Edwardsville, IL 62025 Appellees
___________________________________________________________________________________