Commercial Union Ins. Co. v. Stamper

• Decision Date: 11 February 1987
• Docket Number: No. 86-153,86-153
• Citation: 732 P.2d 534
• Parties: COMMERCIAL UNION INSURANCE COMPANY, Appellant (Defendant), v. James L. STAMPER, Appellee (Plaintiff).
• Court: Wyoming Supreme Court

Page 534

732 P.2d 534

COMMERCIAL UNION INSURANCE COMPANY, Appellant (Defendant), v. James L. STAMPER, Appellee (Plaintiff).

No. 86-153.

Supreme Court of Wyoming.

Feb. 11, 1987.

J.N. Murdock of Reeves & Murdock, Casper, for appellant (defendant).

Richard H. Peek, Casper, for appellee (plaintiff).

Before BROWN, C.J., ^* THOMAS, URBIGKIT and MACY, JJ., and GUTHRIE, J., Retired.

URBIGKIT, Justice.

This appeal presents the question whether an insured, under a single automobile insurance policy encompassing several vehicles may "stack" or "pyramid" uninsured-motorists and medical-payment provisions for recovery of injury and medical expenses sustained in an accident involving one of the covered vehicles.

The plaintiff-appellee, James L. Stamper, was involved in an automobile collision with an uninsured motorist, and sustained bodily injuries. At the time, he had an automobile insurance policy issued to him as named insured by the defendant-appellant, Commercial Union Insurance Company (the insurer), covering three vehicles with uninsured-motorists and medical-payments provisions with the face amount of $20,000 and $500, respectively. The trial judge held for Stamper by granting summary judgment, and determined the recovery to be the aggregate sum of coverage for all vehicles of $60,000 uninsured-motorists liability and $1,500 for medical benefits. This appeal is from that judgment.

The stated issues are:

I. Does public policy of Wyoming prohibit the limitation of damages that will be paid for any one accident under a single insurance policy pursuant to its uninsured-motorists and medical-payments provisions so that a policy provision to the contrary is void?

II. Did the trial court err in finding as a matter of law that the insurance policy was ambiguous regarding total coverage, and by granting summary judgment to the insured by stacking or aggregating the policy coverage for each vehicle to achieve the totals of $60,000 and $1,500?

The insurer argues that Stamper should not have the benefit of coverage as to all three vehicles but can recover only the amount provided for the single vehicle which was occupied at the time of the occurrence--or $20,000 for uninsured-motorists coverage and $500 for medical payments.

We agree, and will reverse.

Summary Judgment

The standard of review for summary judgment appeals has been well established by this court.

" 'When reviewing a summary judgment on appeal, we review the judgment in the same light as the district court, using the same information. Randolph v. Gilpatrick Construction Company, Inc., Wyo., 702 P.2d 142 (1985); and Lane Company v. Busch Development, Inc., Wyo., 662 P.2d 419 (1983). A party moving for summary judgment has the burden of proving the nonexistence of a genuine issue of material fact. Dudley v. East Ridge Development Company, Wyo., 694 P.2d 113 (1985). Material fact has been defined as one which, if proved, would have the effect of establishing or refuting an essential element of the cause of action or defense asserted by the parties. Samuel Mares Post No. 8, American Legion, Department of Wyoming v. Board of County Commissioners of the County of Converse, Wyo., 697 P.2d 1040 (1985). Upon examination of a summary judgment, we view the record from the vantage point most favorable to the party opposing the motion, giving him all favorable inferences which may be drawn from the facts. Bancroft v. Jagusch, Wyo., 611 P.2d 819 (1980).' Garner v. Hickman, [Wyo.] 709 P.2d 407, 410 (1985)." Schutkowski v. Carey, Wyo., 725 P.2d 1057, 1059 (1986).

The litigants here agree on the essential facts, so that separate inquiry into the facts is not necessary in application of the law for appeal disposition.

In applying the applicable stage analysis of a summary-judgment situation as enunciated in Cordova v. Gosar, Wyo., 719 P.2d 625 (1986), we find that this case encompasses a substantive legal issue disposition or a Stage Five summary judgment.

"Stage Five: legal issue disposition. Resolution in many cases is accommodated at this time by a determination that the issue between the parties is not factual in nature, but rather involves a contested issue of law which consequently will decide the case. This stage resolution involves interpretation of unambiguous contracts, suits on rationally uncontested promissory notes, and a variant kind of circumstance where the facts are not in dispute but the legal principles are otherwise at issue. Ogle v. Caterpillar Tractor, Wyo., 716 P.2d 334 (1986); City of Casper v. International Association of Firefighters, Wyo., 713 P.2d 1187 (1986); Duffy v. Brown, Wyo., 708 P.2d 433 (1985); Sannerud v. First National Bank of Sheridan, Wyo., 708 P.2d 1236 (1985)." (Emphasis added.) 719 P.2d at 636.

With the parties only disagreeing on the interpretation and scope of the insurance agreement, we have for disposition questions of law involving the application of public policy, and the interpretation and construction of the contract. Western Utilities Contractors, Inc. v. City of Casper, Wyo., 731 P.2d 24 (1986); Burk v. Burzynski, Wyo., 672 P.2d 419 (1983); Hursh Agency, Inc. v. Wigwam Homes, Inc., Wyo., 664 P.2d 27 (1983); Rouse v. Munroe, Wyo., 658 P.2d 74 (1983); Tate v. Mountain States Telephone and Telegraph Co., Wyo., 647 P.2d 58 (1982); Busch Development, Inc. v. City of Cheyenne, Wyo., 645 P.2d 65 (1982); and Amoco Production Company v. Stauffer Chemical Company of Wyoming, Wyo., 612 P.2d 463 (1980).

Public Policy

In delineating public policy, the key is found in our identifying and giving force and effect to that public policy of the State of Wyoming announced through applicable statutes or controlling precedent. Allstate Insurance Company v. Wyoming Insurance Department, Wyo., 672 P.2d 810, 815 (1983). A statutory review is necessary, since, although "parties have the right to embody in their insurance contract whatever lawful terms they wish," Alm v. Hartford Fire Insurance Company, Wyo., 369 P.2d 216, 217 (1962), citing Rosenblum v. Sun Life Assurance Company of Canada, 51 Wyo. 195, 65 P.2d 399, 109 A.L.R. 911 (1937), "the insurance agreement must not conflict with pertinent statutes or public policy," Allstate Insurance Company v. Wyoming Insurance Department, supra 672 P.2d at 816, citing McKay v. Equitable Life Assurance Society of the United States, Wyo., 421 P.2d 166 (1966), and Cincinnati Insurance Company v. Mallon, Ind.App., 409 N.E.2d 1100 (1980).

The Uninsured Motor Vehicle Coverage Act (§§ 31-10-101 through 31-10-104, W.S.1977) provides in § 31-10-101 that:

"No policy insuring against loss resulting from liability imposed by law for bodily injury or death suffered by any natural 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 as approved by W.S. 31-9-102(a)(x), under provisions approved by the insurance commissioner for the protection of persons insured thereunder or legally entitled to recover damages from owners or operators or uninsured motor vehicles because of bodily injury, sickness or disease, including death resulting therefrom. The named insured may reject the coverage. Unless the named insured requests the coverage in writing, the coverage need not be provided in or supplemental to a renewal policy where the named insured had rejected the coverage in connection with the policy previously issued to him by the same insurer." (Emphasis added.)

Furthermore, § 31-9-102(a)(x), W.S.1977, states:

"(x) 'Proof of financial responsibility' means proof of ability to respond in damages for liability, on account of accidents occurring subsequent to the effective date of said proof, arising out of the ownership, maintenance or use of a motor vehicle, in the amount of ten thousand dollars ($10,000.00) because of bodily injury to or death of one (1) person in any one (1) accident, and subject to said limit for one (1) person, in the amount of twenty thousand dollars dollars ($20,000.00) because of bodily injury to or death of two (2) or more persons in any one (1) accident, and in the amount of five thousand dollars ($5,000.00) because of injury to or destruction of property of others in any one (1) accident." ¹

" * * * [T]he words employed by the legislature in announcing the law must be given their plain and ordinary meaning. McArtor v. State, Wyo., 699 P.2d 288, 292 (1985); Hurst v. State, Wyo., 698 P.2d 1130 (1985)." Scadden v. State, Wyo., 732 P.2d 1036, 1042 (1987).

Taking the plain meaning of the words used in reading and interpreting the applicable statutes as promulgated and enacted by the Wyoming legislature, it is apparent that the purpose of uninsured-motorists insurance coverage is to provide to innocent automobile accident victims an opportunity to procure a means of insulating themselves from damages incurred as a result of unfortunate and far too frequently occurring automobile collisions with uninsured motorists. Under Wyoming law, the purchase of uninsured-motorists insurance is not mandatory, but is a matter of discretion for the individual. The legislature intended that the insured be given the opportunity of subscribing to such coverage, and set a minimum coverage, allowing the insured to elect that minimum or any greater amount.

"[T]he uninsured motor vehicles act is calculated to protect a restricted category of drivers--namely, those insured owners who are involved in accidents with drivers who do not carry insurance.

"Compulsory insurance, on the other hand, is intended to be but one of the conditions for driving upon the highways of the state and its purpose is to benefit the motoring public as a whole (see 7 Am Jur 2d, Automobile Insurance § 20, p. 466, infra), not just a restricted class of persons who have shown...