Allstate Ins. Co. v. Pogorilich

• Decision Date: 14 April 1992
• Docket Number: No. 91-451-A,91-451-A
• Citation: 605 A.2d 1318
• Parties: ALLSTATE INSURANCE COMPANY v. Ronald POGORILICH et al.
• Court: Rhode Island Supreme Court

Page 1318

605 A.2d 1318

ALLSTATE INSURANCE COMPANY v. Ronald POGORILICH et al.

No. 91-451-A.

Supreme Court of Rhode Island.

April 14, 1992.

John H. Blish, Blish & Cavanagh, Providence, for plaintiff.

Dennis S. Baluch, Baluch, Mahoney & Gianfrancesco, Providence, for defendants.

OPINION

WEISBERGER, Justice.

This case comes before us on the basis of two certified questions from the Superior Court after the parties filed a stipulated set of facts in accordance with the provisions of G.L.1956 (1985 Reenactment) § 9-24-25. The questions certified by the Superior Court are set forth as follows:

"A. Is the single 'each person' limit of uninsured/underinsured motorists coverage (coverage SS) under the policy, or $200,000, the maximum amount recoverable by Ronald and Marion [Pogorilich] from Allstate where Marion did not sustain a bodily injury in the accident, and Marion's loss of consortium claim merely arises out of bodily injury to Ronald?

"B. Does the policy provide for an award of prejudgment interest to defendants where the total award will exceed the policy's uninsured/underinsured motorists limits, or, in the alternative, if interest in excess of said limits can be awarded, must it be based on no greater a sum than the limits of coverage provided, and must it be limited to the period from which Allstate first was required to make payment to defendants under the policy?"

The facts as disclosed in the stipulation are as follows.

Ronald Pogorilich (Ronald) was seriously injured in an automobile accident in which, while driving a vehicle covered under a policy issued by Allstate Insurance Company (Allstate), he collided with an automobile owned and operated by Michelle Dow (Dow). The accident occurred on May 22, 1986.

Thereafter Ronald asserted a claim for negligence against Dow who was insured under an automobile-liability insurance policy issued by Peerless Insurance Company (Peerless). The claim was settled by payment of the full limits of coverage by Peerless in the amount of $100,000. Marion Pogorilich (Marion) was not in the automobile with Ronald at the time of the accident but asserted a claim for loss of consortium. The settlement agreement with Peerless allocated $98,006 for Ronald's personal injury claim, $1,000 for Marion's loss of consortium, and $994 for property damage.

At all times pertinent to this litigation, Ronald and Marion were insured under an automobile-liability insurance policy issued by Allstate that provided coverage for two automobiles and contained "stacked" limits of $200,000 for "each person" and $600,000 for "each accident" in the following words:

"The coverage limit shown on the declarations page for:

1. 'each person' is the total limit for all damages arising out of bodily injury to one person in any one motor vehicle accident.

2. 'each accident' is the total limit for all damages arising out of bodily injury to two or more persons in any one motor vehicle accident. This limit is subject to the limit for 'each person.'

3. 'each accident' is the total limit for all damages arising out of injury to or destruction of all property of one or more persons in any one motor vehicle accident."

Part V of the policy (coverage SS) also provides that Allstate will pay damages for bodily injury or property damage that an insured person is legally entitled to recover from the owner or operator of an uninsured auto. The policy defines "insured persons" as follows:

"1. You and any resident relative.

"2. Any person while in, on, getting into or out of an insured auto with your permission.

"3. Any other person who is legally entitled to recover because of bodily injury to you, a resident relative, or an occupant of your insured auto with your permission."

Allstate, Ronald, and Marion submitted to arbitration the question of the amount of damages that Ronald and Marion were entitled to recover from Dow, the tortfeasor. By an award of the arbitrators dated January 2, 1990, it was determined that Ronald sustained damage by reason of his bodily injury in the sum of $337,198 and would have been entitled to recover that sum from the tortfeasor plus interest thereon from the date of the accident at the rate of 12 percent per annum. The arbitrators further determined that Marion sustained damages by reason of her loss of consortium in the sum of $60,000 and would have been entitled to recover that sum from the tortfeasor plus interest thereon from the date of the accident at the rate of 12 percent per annum.

Thereafter, on February 14, 1990, Allstate paid to Ronald and Marion the sum of $200,000 under the uninsured/underinsured motorist coverage of the policy. In accepting the $200,000, Ronald and Marion expressly reserved their rights to pursue their claim for interest awarded by the arbitrators in excess of the policy limits and also Marion's claim for loss of consortium together with interest on the loss of consortium claim.

Allstate contends that the "each person" limit of uninsured/underinsured motorist coverage under the policy, or $200,000, was the maximum amount recoverable by Ronald and Marion from Allstate under the policy. However, Ronald and Marion contend that the "each accident" limit of uninsured/underinsured motorist coverage under the policy, or $600,000 (subject to the $200,000 limit for "each person"), was the maximum amount recoverable by Ronald and Marion from Allstate under the policy. In addition Ronald claims that he is entitled to recover interest from Allstate from the date of the accident at the rate of 12 percent per annum on the sum of $239,192 (which is derived by subtracting from the total award Ronald would have recovered from the tortfeasor, Dow, namely...