702 A.2d 675 | Conn. Super. Ct. | 1996
The plaintiffs, Norfolk and Dedham Mutual Fire Insurance Company (Norfolk) and Liberty Mutual Fire Insurance Company (Liberty), have applied to vacate an uninsured motorist arbitration award. The defendant, Craig Wysocki, moves to confirm the award. *145
The parties stipulated to the following facts. On October 29, 1989, while on a public road in Durham, the defendant was injured when an all-terrain vehicle owned and operated by him collided with another all-terrain vehicle owned and operated by Hans Pedersen. Although both all-terrain vehicles were uninsured, at the time, the defendant was the owner of a private passenger motor vehicle insured by Liberty with uninsured motorist coverage in the amount of $20,000. In addition, the defendant was insured under a policy issued to his mother by Norfolk which provided uninsured motorist coverage in the amount of $40,000.1 As a result of the accident, the defendant made uninsured motorist claims against both policies. On October 2, 1995, the parties entered into arbitration, and, on December 13, 1995, a majority of the arbitrators awarded the defendant $60,000, the maximum amount recoverable under the uninsured provisions of the two policies.2
On January 10, 1996, Norfolk filed an application to vacate, correct or modify the arbitration award (Docket No. CV96-77652); see General Statutes §§
The court must first determine the standard it is required to apply in reviewing the decision of the arbitrators. "This inquiry hinges on whether the arbitration was voluntary or compulsory, and, if voluntary, whether the submission was restricted or unrestricted. If the parties engaged in voluntary arbitration, the trial court's standard of review, provided that the submission was unrestricted, would be limited to whether the award conformed to the submission. Bridgeport v. Connecticut PoliceDept. Employees Local 1159,
General Statutes §
The amended arbitration provisions of both policies are nearly identical. Liberty's provision provides in pertinent part that: "If we and an `insured' do not agree: (1) Whether that person is legally entitled to recover damages under Part C; or (2) As to the amount of damages; the `insured' party may make a written demand for *148 arbitration. "4 The court interprets this provision as a voluntary, unrestricted submission with regard to damages and legal liability. See id., 488-90. Thus, with regard to coverage issues, the court must conduct a de novo review of the interpretation and application of the law by the arbitrators, and as to any other issues, the court need only determine whether the award conforms to the submission.
"Although ordinarily the question of contract interpretation, being a question of the parties' intent, is a question of fact; Gurliacci v.Mayer,
"It is a basic principle of insurance law that policy language will be construed as laymen would understand *149 it and not according to the interpretation of sophisticated underwriters, and that ambiguities in contract documents are resolved against the party responsible for its drafting; the policyholder's expectations should be protected as long as they are objectively reasonable from the layman's point of view. . . . The premise behind the rule is simple. The party who actually does the writing of an instrument will presumably be guided by his own interests and goals in the transaction. He may choose shadings of expression, words more specific or more imprecise, according to the dictates of these interests. . . . A further, related rationale for the rule is that [s]ince one who speaks or writes, can by exactness of expression more easily prevent mistakes in meaning, than one with whom he is dealing, doubts arising from ambiguity are resolved in favor of the latter." (Citations omitted; internal quotation marks omitted.) Id., 843.
The insurance companies first argue that the defendant is not entitled to recover under the policies because an all-terrain vehicle is not a "motor vehicle" as defined by the General Statutes. Pursuant to General Statutes §
Although an all-terrain vehicle does not meet the statutory definition of motor vehicle, resort to the statutory definition is unnecessary in this instance. For purposes of uninsured motorist coverage, both policies define an uninsured motor vehicle as "a land motor vehicle of any type" to which no bodily injury liability bond or policy applies at the time of the accident, except any vehicle or equipment "designed mainly for use off public roads while not on public roads." (Emphasis added.) Although all-terrain vehicles are designed mainly for use off public roads, the accident in the present case occurred on a public road. Accordingly, the court finds that the Pedersen all-terrain vehicle qualifies as an uninsured motor vehicle for purposes of the uninsured motorist coverage afforded under both insurance policies. Accord Kashmark v. Western Ins.Cos.,
The insurance companies argue in the alternative, however, that even if the Pedersen all-terrain vehicle qualifies as an uninsured motor vehicle under the policies, the defendant should be denied coverage pursuant to exclusion provisions in their respective policies.
The relevant exclusion provision of Norfolk's policy provides that: "We do not provide Uninsured Motorists Coverage for bodily injury sustained by any person: (1) While occupying, or when struck by, any motor vehicle owned by you or any family member which is not insured for this coverage under this policy. This includes a trailer of any type used with that vehicle." (Emphasis in original.) This exclusion is based on General Statutes §
"When an insurer seeks to limit its liability for uninsured or underinsured motorist coverage based on the regulation issued pursuant to [General Statutes] § 38-175c [now General Statutes §
In analyzing a policy exclusion similar to the Norfolk exclusion at issue here, our Supreme Court, in Chmielewski, found the requisite congruence to be lacking.5 The court stated that: "[A]lthough there are substantial similarities between the terms of the statute and the policy exclusion, there are also substantial dissimilarities: whereas the statute requires that the vehicle be uninsured or underinsured, the policy does not; whereas the statute requires that the named insured or resident relative be struck `as a pedestrian,' the policy requires only that they be `struck'; and whereas the policy exclusion requires that the vehicle not be covered under the policy, the statute does not. A `limitation of liability on uninsured or underinsured motorist coverage must be construed most strongly against the *152
insurer.' American Universal Ins. Co. v. DelGreco, [
Although the relevant Liberty policy exclusion was once identical to that of Norfolk, it was amended to provide: "We do not provide Uninsured Motorist Coverage for `bodily injury' sustained by any person: (1) While `occupying', or when struck by, any motor vehicle or motorcycle owned by that person or owned by you for which the security required by the Connecticut Financial Responsibility Act is not in effect. This includes a trailer of any type used with that vehicle." (Emphasis added.) Liberty argues that the exclusion applies because the defendant was occupying an all-terrain vehicle owned by him on which there was no insurance at the time of the accident. Regardless of whether this is an authorized exclusion, it is inapplicable in the present case because there is no requirement that all-terrain vehicles be insured under Connecticut law. See General Statutes §
In addition, the defendant contends that he is not precluded from coverage because his all-terrain vehicle does not qualify as a "motor vehicle" with regard to *153 the policy exclusions. Liberty argues in opposition, however, that the defendant cannot have it both ways — i.e., if the Pedersen all-terrain vehicle qualifies as a motor vehicle for purposes of the definition of an uninsured motor vehicle under the policy, then the defendant's all-terrain vehicle must be considered a motor vehicle for purposes of the definition of motor vehicle in the exclusion provision. The court disagrees.
As noted by the defendant, pursuant to the policies, an uninsured motor vehicle means "a land motor vehicle of any type."6 Thus, the insurance companies elected to use a broader definition of motor vehicle than that found in §
In concluding, the court acknowledges that "our courts have wholeheartedly endorsed arbitration as an effective alternative method of settling disputes intended to avoid the formalities, delay, expense and vexation of ordinary litigation. . . . [I]ts autonomy requires a minimum of judicial intrusion." (Citations omitted; internal quotation marks omitted.) Metropolitan District Commission v. AFSCME,