Gentile v. Altermatt

• Decision Date: 05 August 1975
• Court: Connecticut Supreme Court
• Parties: Louis A. GENTILE et al. v. Paul B. ALTERMATT (Thomas C. White, substituted Defendant) et al.

Page 1

363 A.2d 1

169 Conn. 267

Louis A. GENTILE et al. v. Paul B. ALTERMATT (Thomas C. White, substituted Defendant) et al.

Supreme Court of Connecticut.

Aug. 5, 1975.

Appeal Dismissed Jan. 12, 1976. See 96 S.Ct. 763.

Harold J. Geragosian, New Britain, with whom were Timothy Sheehan and Mitchell Gardner, New Britain, for plaintiffs.

Barney Lapp, Asst. Atty. Gen., with whom, on the brief, was Carl R. Ajello, Atty. Gen., for named defendant and others.

Ralph G. Elliot, Hartford, with whom was William H. Champlin III, Hartford, for defendants Aetna Casualty and Surety Company and others.

Before HOUSE, C.J., and LOISELLE, MacDONALD, BOGDANSKI and LONGO, JJ.

MacDONALD, Associate Justice.

This declaratory judgment action was brought by the plaintiffs seeking a declaration that 1972 Public Acts, No. 273, now codified in chapter 690 of the General Statutes as §§ 38-319 through 38-351a and subsequently amended, is unconstitutional. The plaintiffs are Connecticut residents, taxpayers and private passenger motor vehicle owners required by the act to maintain security on their vehicles, three of whom, Rosemary Boyajian, Stilianos Karidas and Katherine Pagonis, sustained, in private passenger motor vehicle accidents subsequent to the effective date of the act, injuries which did not result in death, permanent injury, fracture of any bone, permanent significant disfigurement, permanent loss of any bodily function, or allowable expense, as that term is defined by the act, in excess of $400.

The defendant state officials are the insurance commissioner, the treasurer, the comptroller and the commissioner of finance and control. The intervening defendants are eight domestic and foreign insurance companies which write automobile liability insurance on private passenger motor vehicles in the state of Connecticut. All of the defendant insurance companies are also members of the Connecticut automobile insurance plan, an assigned risk plan maintained by authority of law.

Notice of the pendency of this action was given pursuant to an order of notice dated January 11, 1973. The second amended complaint in this action was dated February 22, 1973, and was answered by the defendants on July 10 and July 11, 1974. The Court of Common Pleas (Missal, J.) on July 8, 1974, found that all persons having an interest in the subject matter of the complaint had received reasonable notice thereof.

On July 11, 1974, the parties executed a stipulation of fact and posed certain questions of law for which they sought by reservation the advice of this court. The stipulation contains a complete statement of the facts, including the exhibits and documents necessary for resolution of the questions propounded by the parties. On July 12, 1974, at the request of and with the consent of all the parties, the court (Missal, J.) reserved the questions listed in the stipulation for the consideration and advice of this court.

The No-Fault Motor Vehicle Insurance Act, hereinafter the act, passed by the General The plaintiffs assert broadly and extensively that in various respects the act is unconstitutional under the federal and state constitutions. They challenge specifically the requirement that they maintain basic reparations security and the restrictions imposed by the act on the allowance of civil actions to recover for noneconomic detriment and economic loss suffered as a result of private passenger motor vehicle accidents.

Assembly on April 18, 1972, and signed by the governor, constitutes a thorough reform of the automobile accident compensation system in Connecticut. Justification for passage of the act is based upon legislative hearings, and the findings of the special Connecticut study commission, the United States Department of Transportation Automobile Insurance and Compensation Study, and the testimony of numerous witnesses at public hearings. Briefly summarized, the act requires that owners of private passenger motor vehicles in Connecticut and certain other persons provide security for the payment of basic reparations benefits and for residual liability. Basic reparations benefits are provided, without regard to fault, to the basic reparations insured for personal [169 Conn. 271] injuries and economic loss suffered as a result of automobile accidents. In consideration of the payment of first party benefits under the act, civil actions may be maintained to recover for noneconomic detriment owing to automobile accidents involving private passenger motor vehicles only when the insured suffers death, permanent injury, fracture of any bone, permanent significant disfigurement, permanent loss of any body function or allowable expense in excess of $400.

We find that there are actual bona fide and significant questions in dispute between the parties and a substantial uncertainty as to the legal relationships arising out of the facts stated herein and that the resolution of these questions involves matters of public interest and major importance to the parties and to the people of the state of Connecticut.

I SYNOPSIS OF ACT

Because of the complexity of the issues involved, each prong of the plaintiffs' multitined attack upon the constitutionality of the act will be treated separately. As a prologue to an analysis of the questions posed, and in the interests of clarity, the following is a synopsis, section by section, of the salient portions of the act:

Section 38-319. Definition of Terms.

'Basic reparations insured.' Refers to those persons entitled to coverage under a policy covering an owner of a private passenger motor vehicle required to be insured.

'Economic loss.' Means loss consisting of medical and hospital expenses, lost income from work, and, if death is involved, funeral expenses up to $2000 and survivor's loss. Medical expense coverage is broad and includes items such as rehabilitation, nursing services, laboratory fees and drugs, and ambulance services. Work loss includes expenses for substitute household services. Survivor's loss means loss of support suffered by dependents after the death of an injured person.

'Non-economic detriment.' Means pain, suffering, inconvenience, physical impairment and mental anguish.

'Allowable expense.' Means reasonable charges incurred whether or not covered by insurance for reasonably needed products, services and accommodations.

'Private passenger motor vehicle.' Means a private passenger, station wagon or camper type automobile (other than a motorcycle) not used as a public or livery conveyance, or an automobile of the truck Section 38-320. Liability of Owner's Insurer for Basic Reparations Benefits. Outlines the coverage provided by the act. The benefits are called 'basic reparations benefits' and consist of a uniform, separately identifiable coverage in every automobile policy of $5000 per persons per accident for economic loss resulting from injury arising out of the use of an automobile. The section provides that benefits of up to $5000 per persons are payable to an injured person or, in case of death, to his survivors. This section also provides that benefits for work loss shall not exceed 85 percent of the value of work loss and that benefits for work loss and survivor's loss shall not exceed $200 per week.

type with a load capacity of not more than 1500 pounds not used for commercial purposes other than farming.

Section 38-321. Payees of Basic Reparations Benefits. Defines the circumstances under which basic reparations benefits will be payable to covered persons. It provides for payment to an owner of a private passenger motor vehicle and his relatives injured while occupying a private passenger motor vehicle or while a pedestrian anywhere in the United States, its territories and possessions, or Canada. It also provides for payment to any other person injured while occupying the owner's car anywhere or while a pedestrian struck by the owner's car in Connecticut.

Section 38-323. When Cause of Action Allowable. Establishes the 'threshold' for negligence actions. It provides that an injured person entitled to basic reparations benefits can sue an insured owner for negligence arising out of the use of a private passenger automobile only if the injured person has suffered (1) death, (2) permanent injury, (3) fracture of any bone, (4) permanent significant disfigurement, (5) permanent loss of any bodily function, (6) loss of a body member or (7) medical expenses in excess of $400. Persons receiving free medical, hospital or surgical care are entitled to sue if the reasonable value of such care exceeds $400.

Section 38-325. Subrogation. Concerns reimbursement and subrogation rights of insurers. This section provides that an insurer which has paid basic reparations benefits to an injured person is entitled to reimbursement if the injured person is successful in recovering damages in a negligence suit against another insured owner.

Section 38-326. Residual Liability Insurance. Defines residual liability insurance as being, in essence, the traditional third party bodily injury and property damage liability insurance for accidents occurring in the United States, its territories and possessions, or Canada. This liability insurance must comply with the financial responsibility minimums.

Section 38-327. Mandatory Security Requirements. (as amended by Public Act No. 74-13). Concerns required coverages. The owner of a private passenger motor vehicle required to be registered in Connecticut is required to provide security for the payment of basic reparations benefits and residual liability insurance. The owner of a private passenger motor vehicle not required to be registered in this state must provide the same security for accidents occurring in Connecticut. Security may be provided by an insurance policy or through various methods of self-insurance.

Section 38-328. Policies Deemed to Provide Required Coverage. Provides that every insurance company authorized to transact...