Burkett v. American Family Ins. Group

• Decision Date: 31 October 2000
• Docket Number: No. 49A02-0004-CV-260.,49A02-0004-CV-260.
• Citation: 737 N.E.2d 447
• Parties: Richard BURKETT and Barbara Burkett, Appellants-Plaintiffs, v. AMERICAN FAMILY INSURANCE GROUP, American Family Mutual Insurance Company and Marilyn Greer, Appellees-Defendants, and Terrance Prewitt, Jr., and Terrance Prewitt, Sr., Defendants.
• Court: Indiana Appellate Court

737 N.E.2d 447

Richard BURKETT and Barbara Burkett, Appellants-Plaintiffs, v. AMERICAN FAMILY INSURANCE GROUP, American Family Mutual Insurance Company and Marilyn Greer, Appellees-Defendants, and Terrance Prewitt, Jr., and Terrance Prewitt, Sr., Defendants.

No. 49A02-0004-CV-260.

Court of Appeals of Indiana.

October 31, 2000.

Michael E. Simmons, Hume Smith Geddes Green & Simmons, LLP, Indianapolis, Indiana, Attorney for Appellants.

Linda H. Hammel, Yarling & Robinson, W. Brent Threlkeld, Neal F. Eggeson, Threlkeld Reynolds, LLP, Indianapolis, Indiana, Attorneys for Appellee.

OPINION

RILEY, Judge

STATEMENT OF THE CASE¹

Appellants-Plaintiffs, Richard Burkett and Barbara Burkett (jointly referred to as the Burketts), appeal the trial court's summary judgment granted in favor of the Appellees-Defendants, American Family Insurance Group and American Family Mutual Insurance Company (collectively referred to as American Family), and Terrance Prewitt, Jr. (Prewitt, Jr.). The Burketts also appeal the trial court's denial of their Motion for Summary Judgment. Finally, the Burketts appeal the trial court's Order granting Appellee-Defendant's, Marilyn Greer, Motion for Judgment on the Pleadings.

We affirm.

ISSUES

The Burketts raise three issues on appeal,² two of which we find dispositive and we restate as follows:

1. Whether the trial court erred in interpreting the insurance contract between American Family and George and Marilyn Greer.

2. Whether the tort statute of limitations bars the Burketts' claim against Marilyn Greer.

FACTS AND PROCEDURAL HISTORY

The undisputed facts of this case are as follows. On October 10, 1995, Richard Burkett was involved in a collision with Prewitt, Jr., in Indianapolis, Indiana. The accident was caused by the negligence of Prewitt, Jr.,³ and Burkett was seriously injured as a result of this collision. At the time of the collision, Prewitt, Jr., was driving a vehicle owned by Steven Jones (Jones). Jones had insurance coverage for this vehicle with Growers Insurance Company. Additionally, at the time of the collision, Prewitt, Jr., a minor, lived with his grandparents, George and Marilyn Greer, and owned his own automobile which was covered by a policy of insurance issued by the American Standard Insurance Company of Wisconsin.⁴

Both of these insurance companies paid the available policy limits to Richard Burkett and on March 21, 1997, Burkett executed a "General Release." This Release provided in pertinent part:

KNOW ALL MEN BY THESE PRESENTS, that the undersigneds, for the consideration of the sum of One Hundred Thousand Dollars ($100,000.00) paid by American Family Insurance Group, and for the further consideration of One Hundred Thousand Dollars ($100,000.00) paid by Growers Automobile Insurance Association, now forever release and discharge Terrance Prewitt, Jr., ... Marilyn Greer, ... American Family Insurance Group ... from any and all manner of actions, causes of action, suits, accounts, contracts, debts, claims and demands whatsoever, except as otherwise reserved below ...

* * *

This General Release is executed and agreed to, in part, upon the representation that the maximum available automobile liability insurance policy limits available through Growers Automobile Insurance Association are One Hundred Thousand Dollars ($100,000.00), that the maximum available automobile liability insurance policy limits available through American Family Insurance Group are One Hundred Thousand Dollars ($100,000.00), that Terrance Prewitt, Jr. is eighteen (18) years of age but, although employed, does not own any real estate nor own a vehicle and has no substantial assets other than the aforementioned automobile liability insurance policy coverages. In the event it is later determined that, at the time of the execution of this General Release, other insurance coverage or assets were available and subject to application for satisfaction of the claims of Richard Burkett arising from the aforementioned motor vehicle collision, the undersigneds specifically and explicitly reserve the right to pursue such insurance coverage and/or assets and this General Release shall not be applicable to, nor effective against, the pursuit of such additional recovery even against those parties otherwise released herein.

(R. 69-70).

Thereafter, on October 9, 1997, the Burketts filed a Complaint for Declaratory Judgment against American Family and Prewitt, Jr., claiming that certain other insurance policies issued to George Greer by American Family provided additional coverage for the automobile collision of October 10, 1995. After filing this Complaint, the Burketts learned that Marilyn Greer and Terrance Prewitt, Sr., had signed a financial responsibility affidavit on Prewitt, Jr.'s license application in which they agreed to be responsible for any injuries or damages caused by Prewitt, Jr.'s operation of a motor vehicle. Thus, on March 26, 1998, the Burketts amended their Complaint adding Marilyn Greer and Terrance Prewitt, Sr., as defendants.⁵

On February 1, 1999, Marilyn Greer filed a Motion for Judgment on the Pleadings alleging that the cause of action against her was barred by the statute of limitations and further, that any claims against her had been released by Richard Burkett. On April 20, 1999, the trial court granted this motion.

On September 9, 1999, American Family filed a Motion for Summary Judgment claiming that Prewitt, Jr., was not insured under the Greers' insurance policies with American Family. Specifically, American Family argued that Prewitt, Jr., did not meet the insurance policies definition of the term "relative," and thus, was not covered by the policies. Subsequently, on November 12, 1999, the Burketts filed their Motion for Summary Judgment arguing that they were entitled to summary judgment on their claims against American Family. Oral argument was held on these motions on January 13, 2000, and on February 2, 2000, the trial court granted American Family's Motion for Summary Judgment and denied the Burketts' Motion for Summary Judgment.

This appeal followed.

DISCUSSION AND DECISION

I. Cross Motions for Summary Judgment

The Burketts assert that the trial court improperly granted summary judgment in favor of American Family. American Family moved for summary judgment asserting that the insurance policies insuring vehicles owned by George Greer do not provide additional liability coverage for the collision of October 10, 1995. In its motion, American Family argued that Prewitt, Jr., was not an insured under Greers' policies because he did not meet the definition of the term "relative" as set forth in both policies. The trial court apparently agreed and granted summary judgment for American Family. On appeal, the Burketts argue that the trial court failed to properly interpret the policy language at issue. The Burketts conclude that the trial court should have interpreted the policy language to allow coverage for the collision, and accordingly, the trial court should have granted summary judgment in their favor. We disagree.

A. Standard of Review for Summary Judgment

When reviewing an entry of summary judgment, this court applies the same standard as the trial court. City of Fort Wayne v. Kotsopoulos, 704 N.E.2d 1069, 1070 (Ind.Ct.App.1999). "Summary judgment is appropriate when the evidentiary matter designated to the trial court shows both that no genuine issue of material fact exists and that the moving party is entitled to judgment as a matter of law." Aide v. Chrysler Financial Corp., 699 N.E.2d 1177, 1180 (Ind.Ct.App.1998),trans. denied. We will affirm a summary judgment on appeal if it is sustainable under any theory or basis found in the evidentiary matter designated to the trial court. J.S. Sweet Co., Inc. v. White County Bridge Com'n, 714 N.E.2d 219, 222 (Ind. Ct.App.1999). Additionally, when material facts are not in dispute, our review is limited to determining whether the trial court correctly applied the law to the undisputed facts. Deaton v. City of Greenwood, 582 N.E.2d 882, 884 (Ind.Ct.App. 1991). "When there are no disputed facts with regard to a motion for summary judgment and the question presented is a pure question of law, we review the matter de novo." Mahowald v. State, 719 N.E.2d 421, 424 (Ind.Ct.App.1999)

. Consequently, because the interpretation of a contract is a matter of law, cases involving the interpretation of insurance contracts are particularly appropriate for summary judgment. Westfield Companies v. Rovan, Inc., 722 N.E.2d 851, 855 (Ind.Ct.App.2000). Here, the facts of this case are not in dispute, therefore we apply a de novo standard of review to the issues presented. See Id.

B. Interpretation of Insurance Contract Language

The Burketts assert that the Greers' insurance policies with American Family provide coverage for the collision. The Burketts argue that the policy language relied on by American Family to avoid coverage is ambiguous, inconsistent and contradictory, and under Indiana law must be construed in favor of coverage.

Insurance contract provisions are subject to the same rules of construction as other contracts. Great Lakes Chemical Corp. v. International Surplus Lines Ins. Co., 638 N.E.2d 847, 850 (Ind.Ct.App. 1994). "When interpreting an insurance policy, our goal is to ascertain and enforce the parties' intent as manifested in the insurance contract." Id. In determining the meaning of contract provisions, we consider all of the provisions of the contract and not just individual words, phrases, or paragraphs. Anderson v. State Farm Mut. Auto. Ins. Co., 471 N.E.2d 1170, 1172 (Ind.Ct.App.1984). Thus, the insurance policy must be construed as a whole. Amica Mut. Ins. Co. v. Cincinnati Ins. Co., 494 N.E.2d 358, 360 (Ind.Ct.App. 1986). If the language is clear and unambiguous, it should be given its plain and ordinary meaning. Town of Orland v. National Fire & Cas. Co., 726 N.E.2d 364, 370 (Ind.Ct.App.2000...