88 Hawai'i 284, State Farm Mut. Auto Ins. Co. v. Murata

• Decision Date: 29 October 1998
• Docket Number: No. 20410,20410
• Citation: 88 Hawaii 284,965 P.2d 1284
• Parties: 88 Hawai'i 284 STATE FARM MUTUAL AUTO INSURANCE COMPANY, Plaintiff-Appellee, v. Jane MURATA, fka Jane Oishi, Defendant-Appellant.
• Court: Hawaii Supreme Court

Page 1284

965 P.2d 1284

88 Hawai'i 284

STATE FARM MUTUAL AUTO INSURANCE COMPANY, Plaintiff-Appellee, v. Jane MURATA, fka Jane Oishi, Defendant-Appellant.

No. 20410.

Supreme Court of Hawai'i.

Oct. 29, 1998.

On the briefs: Charles H. Brower of Brower & Brower, Honolulu, for defendant-appellant Jane Murata.

On the briefs: Richard B. Miller, David R. Harada-Stone, and Stacey M. Robinson (of McCorriston Miho Miller & Mukai), Honolulu, for plaintiff-appellee State Farm Mutual Automobile Insurance Company.

Before MOON, C.J., and KLEIN, LEVINSON, NAKAYAMA and RAMIL, JJ.

LEVINSON, J.

The defendant-appellant Jane Murata (formerly known as Jane Oishi) appeals from the final judgment of the first circuit court, filed on February 20, 1997 and entered in favor of the plaintiff-appellee State Farm Mutual Automobile Insurance Company (State Farm) and against Murata, further to the circuit court's order granting State Farm's motion for summary judgment, filed on December 17, 1996, on State Farm's complaint for a judgment declaring that the statute of limitations, as set forth in Hawai'i Revised Statutes (HRS) § 294-36 (1985), ¹ governing Murata's claim for uninsured motorist (UM) insurance coverage, had expired. Murata urges on appeal that the circuit court erred because: (1) the record contained a genuine issue of material fact as to whether she had effectively lodged a timely claim for UM benefits by supplying State Farm with all the information requisite to a claim for UM benefits; (2) State Farm failed to "raise[ ] a statute of limitations defense" until well after it "formally opened a claim file" on Murata's UM claim; and (3) Murata kept State Farm apprised of her ongoing efforts to discover the identity of the third party tortfeasor responsible for her injuries. We agree with Murata's first point of error--that she had successfully raised a genuine issue of material fact as to whether, by her conduct, she had lodged a "claim" with State Farm for UM benefits that tolled the statute of limitations. Accordingly, we vacate that portion of the circuit court's order and judgment granting State Farm the declaratory relief for which it prayed in its complaint and remand the matter to the circuit court for further proceedings consistent with this opinion. In all other respects, we affirm the circuit court's order and judgment. ²

I. BACKGROUND

On July 31, 1987, Murata was involved in an automobile accident with a van, apparently owned by Hawaiian Holiday Macadamia Nut Company (Hawaiian Holiday), at the intersection of Vineyard Boulevard and the Pali Highway, located in the City and County of Honolulu. ³ At the time of the accident, Murata was the named insured under an automobile insurance policy issued by State Farm [hereinafter, "the policy"]. The policy afforded Murata, inter alia, no-fault and UM insurance coverage, and, in this regard, provided in relevant part:

REPORTING A CLAIM--INSURED'S DUTIES

1. Notice to Us of an Accident or Loss.

The insured must give us or one of our agents written notice of the accident or loss as soon as reasonably possible. The notice must give us:

a. your name; and

b. the names and addresses of all persons involved; and

c. the hour, date, place and facts of the accident or loss; and

d. the names and addresses of witnesses.

2. Notice to us of Claim or Suit.

If a claim or suit is made against an insured, that insured must at once send us every demand, notice or claim made and every summons or legal process received.

3. Other Duties Under the Physical Damage Coverages.

When there is a loss, you or the owner of the property also shall:

a. make a prompt report to the police when the loss is the result of theft or larceny.

b. protect the damaged vehicle. We will pay any reasonable expense incurred to do it.

c. show us the damage, when we ask.

d. provide all records, receipts and invoices, or certified copies of them. We may make copies.

e. answer questions under oath when asked by anyone we name, as often as we reasonably ask, and sign copies of the answers.

4. Other Duties Under No-Fault, Uninsured Motor Vehicle, Death, Dismemberment and Loss of Sight Coverages.

The person making [a] claim also shall:

a. give us all the details about the death, injury, treatment and other information we need to determine the amount payable.

b. be examined by physicians chosen and paid by us as often as we reasonably may require. A copy of the report will be sent to the person upon written request. If the person is dead or unable to act, his or her legal representative shall authorize us to obtain all medical reports and records.

c. under the uninsured motor vehicle coverage:

(1) report a "hit-and-run" accident to the police within 24 hours and to us within 30 days.

(2) let us see the insured car the person occupied in the accident.

d. under the no-fault and uninsured motor vehicle coverages send us at once a copy of all suit papers if the party liable for the accident is sued for damages.

(Bold face and italicized emphases in original and underscored emphases added.)

On August 10, 1987, Murata submitted a form to State Farm, captioned "Application for Benefits," in connection with the accident. The form, which bore State Farm's logo, requested, inter alia, (1) the applicant's name, date of birth, social security number, and address, (2) a "brief description of [the] accident and [the] vehicles involved," (3) the fact and description of any injury sustained, (4) the name and address of any treating physician, and (5) the amount of any wages lost to date as a result of the accident. Murata responded to all of the relevant queries. Although the form did not precisely identify the insurance "benefits" to which it pertained, it did advise, as a general matter, that "the information provided will enable us [i.e., State Farm,] to determine if you are entitled to benefits under the policyholder's insurance contract " (emphases added).

State Farm made several no-fault payments to Murata in connection with the accident, the last of which was effected on February 15, 1989. Additionally, State Farm contacted Hawaiian Holiday's insurance carrier, Fireman's Fund Insurance Company (Fireman's Fund), in order to assert its right of subrogation regarding any recovery that Murata might obtain, to the extent of the total no-fault payments that it made to Murata. Fireman's Fund responded that their "records indicated that this accident was never reported to [its] office[,] nor [had its] insured [reported] any knowledge of this accident."

On November 8, 1988, State Farm also began corresponding with Murata's counsel, Charles Brower, regarding State Farm's subrogation rights and the status of Brower's search for the driver of the Hawaiian Holiday van. On April 19, 1991, Brower informed State Farm that he had filed suit against Hawaiian Holiday, which the record indicates was commenced on February 15, 1991. On January 19, 1993, Brower advised State Farm by letter that Murata's suit had been stayed pending bankruptcy proceedings involving Hawaiian Holiday. In the same letter, Brower asked that State Farm "confirm that [it had] opened an Uninsured Motorist claim file, and notify [Brower] of [its] intentions regarding the claim." Although Brower and State Farm had corresponded extensively between 1988 and 1993, the January 19, 1993 letter contained Brower's first express reference to a claim for UM benefits.

State Farm then assigned a claim representative to Murata's UM claim, who began corresponding with Brower. On November 20, 1995, State Farm transmitted a letter to Murata, through Brower, which reserved State Farm's right to assert the defense that the statute of limitations had run on Murata's UM claim but did not formally deny the claim. ⁴

On April 4, 1996, State Farm filed the instant action for a declaration that the statute of limitations had run with regard to Murata's UM claim. On May 6, 1996, Murata filed an answer to the complaint, as well as a counterclaim, seeking general and punitive damages for (1) unfair dealing and bad faith in failing to provide UM benefits, (2) breach of fiduciary duty, and (3) unfair and/or deceptive acts or practices. By order filed on August 15, 1996, the circuit court granted State Farm's motion to dismiss all of Murata's claims for relief set forth in her counterclaim, with the exception of the claim of breach of the implied covenant of good faith and fair dealing.

On August 7, 1996, State Farm filed a motion for summary judgment on its claim for declaratory relief, as well as on the remainder of Murata's counterclaim. As exhibits to its motion, State Farm attached, inter alia, copies of correspondence between Brower and its agents. Murata argued in opposition to the motion that she had, in the initial "Application for Benefits," performed all of the acts required of her by the policy to assert a "claim" for UM benefits. Accordingly, Murata urged that the statute of limitations had been tolled thereby. In this connection, she attached copies of the policy, the completed "Application for Benefits" form, and additional correspondence between the parties regarding her case to her memorandum in opposition.

Following a hearing conducted on December 3, 1996, the circuit court orally granted State Farm's motion for summary judgment with respect to its claim for a declaratory judgment, as well as the surviving portion of Murata's counterclaim. The circuit court's written order to that effect was filed on December 17, 1996, and final judgment in favor of State Farm and against Murata was entered on February 20, 1997. Murata appealed.

II. STANDARD OF REVIEW

We review [a] circuit court's award of summary judgment de novo under the same standard applied by the circuit court. Amfac, Inc. v. Waikiki Beachcomber Inv. Co., 74 Haw. 85, 104, 839 P.2d 10, 22, reconsideration denied, 74 Haw. 650, 843 P.2d 144 (1992) (citation omitted). As we have often articulated:

[s]ummary...