Casco Indem. Co. v. RI INTERLOCAL RISK MGMT. TRUST
| Decision Date | 20 June 1996 |
| Docket Number | C.A. No. 94-0639L. |
| Parties | CASCO INDEMNITY COMPANY, Plaintiff, v. RHODE ISLAND INTERLOCAL RISK MANAGEMENT TRUST, and Victor Cipriano, Defendants. |
| Court | U.S. District Court — District of Rhode Island |
David E. Maglio, Morrison, Mahoney & Miller, Providence, RI, for Plaintiff.
James M. Green, Andrew M. Elmore, Powers, Kinder & Keeney, Providence, RI, for R.I. Interlocal Risk Management Trust.
Gerrick Van Deusen, Providence, RI, for Victor Cipriano.
This matter is before the Court on cross motions for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure. Plaintiff Casco Indemnity Company ("Casco") and defendant Rhode Island Interlocal Risk Management Trust (the "Trust") seek to determine which of their respective insurance policies provides primary uninsured motorist coverage to defendant Victor Cipriano ("Cipriano") for damages sustained as a result of an automobile accident on November 20, 1993. For the reasons that follow, Casco's motion for summary judgment is denied, and the Trust's motion for summary judgment is granted.
The underlying facts of this case are undisputed. On November 20, 1993, Cipriano was a passenger in the rear of a rescue truck owned by the Town of Johnston which was transporting a cardiac patient to Fatima Hospital in North Providence. At the time, Cipriano was employed full time as a lieutenant in the Johnston Fire Department. On the way to the hospital, the rescue truck collided with a vehicle operated by Anthony Damico ("Damico"), an uninsured motorist, at an intersection in Johnston. As a result of the accident, Cipriano sustained personal injuries. Cipriano has been reimbursed for all medical expenses and lost wages arising from the accident pursuant to R.I.Gen.Laws § 45-19-1.
At the time of the accident, the Town of Johnston and the rescue truck involved in the accident were covered by an insurance policy issued by the Trust, a Rhode Island corporation, which was effective from July 1, 1993 to June 30, 1994 (the "Trust Policy"). The Trust Policy provided, inter alia, automobile liability coverage in the amount of $1,000,000 per occurrence. The Trust Policy, however, did not contain uninsured motorist coverage. At the same time, Cipriano held a personal automobile insurance policy with Casco, a Maine corporation, which contained uninsured motorist coverage in the amount of $100,000 (the "Casco Policy").
On November 29, 1994, Casco brought suit in this Court seeking declaratory relief pursuant to 28 U.S.C. § 2201 and Rule 57 of the Federal Rules of Civil Procedure. Essentially, Casco asks the Court to declare that the Trust Policy provides primary uninsured motorist coverage with respect to the accident, and that any uninsured motorist coverage available under the Casco Policy should be deemed excess to the coverage provided by the Trust.
According to Casco, although the Trust Policy does not contain uninsured motorist coverage, the uninsured motorist statute, R.I.Gen.Laws § 27-7-2.1, requires that uninsured motorist coverage be written into the Trust Policy, as a matter of law, in an amount equal to the bodily injury liability limits under the Trust Policy of $1,000,000. Casco also argues that any uninsured motorist coverage available under the Casco Policy should be regarded as excess to the coverage provided by the Trust Policy. In support of its argument, Casco relies on an "other insurance" provision in its policy which states that "any insurance we provide for a vehicle you do not own shall be excess over any other collectible insurance."
On January 17, 1995, the Trust counter-petitioned the Court for declaratory relief. The Trust concedes that R.I.Gen.Laws § 27-7-2.1 requires uninsured motorist coverage to be written into the Trust Policy as a matter of law. The Trust maintains, however, that such coverage should be written in at an amount equal to the statutory minimum of $25,000 for bodily injury to or death of one person in any one accident, and $50,000 for bodily injury to or death of two or more persons in any one accident.
Although the Trust concedes that uninsured motorist coverage should be written into its policy at the statutory minimum level, the Trust argues that an applicable policy exclusion prevents Cipriano from availing himself of any coverage under the Trust Policy. Specifically, the Trust relies on Exclusion (9), which states:
According to the Trust, this policy exclusion should apply to any uninsured motorist coverage which arises as a matter of law, as if such uninsured motorist coverage were included in the original policy. The Trust argues that Exclusion (9) would clearly apply to any claims made by Cipriano as a result of the accident, and would preclude uninsured motorist coverage under the Trust Policy. Therefore, the Trust requests the Court to declare that no coverage is available to Cipriano under its policy. The Trust moves for summary judgment on Casco's claim and on its counter-petition.
Casco contends that Exclusion (9) in the Trust Policy does not apply to coverage that arises as a matter of law. Casco also claims that Exclusion (9) was intended to apply only to third party liability coverages, and not first party coverages such as uninsured motorist coverage. Alternatively, Casco argues that the application of Exclusion (9) would violate the public policy mandated by the Rhode Island General Assembly in R.I.Gen. Laws § 27-7-2.1. Consequently, Casco moves for summary judgment on its claim and on the Trust's counter-petition. After hearing oral arguments on the cross motions, the Court took this matter under advisement. It is now in order for decision.
Rule 56(c) of the Federal Rules of Civil Procedure sets forth the standard for ruling on a summary judgment motion:
The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.
The Court must view all facts and related inferences therefrom in the light most favorable to the nonmoving party. Continental Casualty Co. v. Canadian Universal Ins. Co., 924 F.2d 370, 373 (1st Cir.1991). When cross motions for summary judgment are made, the Court must consider each motion separately, drawing inferences against each movant in turn. Blackie v. State of Maine, 75 F.3d 716, 721 (1st Cir.1996). Summary judgment is appropriate when there is no dispute as to any material fact and only a legal question remains. Id.
Both parties agree that Rhode Island law governs this diversity action. See Erie R.R. Co. v. Tompkins, 304 U.S. 64, 78, 58 S.Ct. 817, 822, 82 L.Ed. 1188 (1938). The controlling statute in this case is R.I.Gen.Laws § 27-7-2.1. Both Casco and the Trust concur that the applicable version of this statute is the one that was in effect on July 1, 1993, the effective date of the Trust Policy. As of this date R.I.Gen.Laws § 27-7-2.1(A)(1) read, in pertinent part:
No policy insuring against loss resulting from liability imposed by law for property damage caused by collision, bodily injury or death suffered by any person arising out of the ownership, maintenance or use of a motor vehicle shall be delivered or issued for delivery in this state with respect to any motor vehicle registered or principally garaged in this state unless coverage is provided therein or supplemental thereto, in limits for bodily injury or death in limits set forth in each policy but in no instance less than the limit set forth in section 31-31-7 as amended, or section 31-32-24 as amended under the provisions approved by the insurance commissioner, for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles and hit-and-run motor vehicles because of property damage, bodily injury, sickness or disease, including death, resulting therefrom, provided, however, that the insurer shall make uninsured motorist coverage available in an amount equal to the insured's bodily injury liability limits at the request of the named insured, and provided further, however, that the named insured shall have the option of selecting a limit in writing less than the bodily injury liability coverage, but in no event less than the limit set forth in section 31-31-7 or section 31-32-24.
Similarly, both Casco and the Trust agree that, although the Trust Policy did not provide for uninsured motorist coverage, such coverage must be written into the Trust Policy, as a matter of law. R.I.Gen.Laws § 27-7-2.1 mandates that no policy of automobile liability insurance shall be delivered in Rhode Island unless it contains uninsured motorist coverage. It is well settled that "contracts of insurance carriers must conform to constitutionally valid conditions imposed by the legislature." Allstate Ins. Co. v. Fusco, 101 R.I. 350, 223 A.2d 447, 450 (1966). Therefore, since the Trust Policy is clearly an automobile liability insurance policy delivered in Rhode Island, it must contain uninsured motorist coverage. Consequently, since no uninsured motorist coverage is explicitly provided for in the Trust Policy, such coverage must be written into the Trust Policy by law. See American Universal Ins. Co. v. Russell, 490 A.2d 60, 62 (R.I.1985).
Although the Trust concedes that its policy must provide uninsured motorist coverage, it argues that Exclusion (9) prevents Cipriano from obtaining any uninsured motorist coverage under the Trust Policy. Exclusion (9) reads:
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