Haberman v. The Hartford Insurance Group
| Decision Date | 10 April 2006 |
| Docket Number | No. 03-6338.,No. 03-6340.,03-6338.,03-6340. |
| Parties | Joann D. HABERMAN, Plaintiff-Appellee, v. THE HARTFORD INSURANCE GROUP, d/b/a Hartford Insurance Company of the Midwest, Defendant-Appellant. |
| Court | U.S. Court of Appeals — Tenth Circuit |
Christopher M. Murphy (Brently C. Olsson with him on the brief), Hartford Insurance Company of the Midwest, Oklahoma City, OK, for the Appellant.
Elizabeth R. Castleberry, Esq. (James A. Scimeca, Esq. and Jack S. Dawson, Esq., with her on the brief), Miller Dollarhide, Oklahoma City, OK, for the Appellee.
Before BRISCOE, HOLLOWAY and SEYMOUR, Circuit Judges.
This appeal arises out of an uninsured motorist coverage dispute between the Defendant Hartford Insurance Group, d/b/a Hartford Insurance Company of the Midwest, a Connecticut Corporation (the "Hartford"), and Oklahoma Plaintiff Dr. JoAnn D. Haberman ("Haberman"). The Hartford appeals from a final Amended Judgment entered on a jury verdict in favor of Haberman. The Hartford also challenges the denial of its summary judgment motion. In a cross-appeal, Haberman appeals from the denial of her motion for new trial and to amend the judgment. We exercise jurisdiction pursuant to 28 U.S.C. § 1291 and AFFIRM.
Plaintiff Haberman is the sole shareholder of a professional corporation, Breast Cancer Screening Center of Oklahoma, Inc. On August 20, 2000, Haberman and her office manager, Tamara Moomey, were returning to Oklahoma City from a pleasure trip in Dallas, Texas. Moomey was the driver and owner of a 2000 Mercury SUV that was headed northbound on I-35 just five miles south of Davis, Oklahoma. Moomey lost control of the SUV and spun off the highway, killing herself and injuring Haberman who sustained a fractured pelvis and multiple contusions.
Moomey's insurer, GEICO Direct, settled with Haberman for its liability limits of $50,000 and an additional $50,000 on Moomey's Uninsured Motorist policy. Haberman then attempted to pursue a further claim for benefits under the Uninsured Motorist (UM) provisions of her policy through the Breast Cancer Screening Center. However, the 2000 Mercury SUV was not a scheduled vehicle under the Center's commercial insurance policy.
On some date,1 prior to the accident, the Center had taken out a Special Multi-Flex Commercial Business insurance policy with the Hartford. Haberman did not personally pay insurance premiums to the Hartford for the policy; rather the Center paid the premiums. The Center was the "named insured" for all lines of coverage under the policy, including the uninsured motorist (UM) provision under the commercial automobile section.
The policy included subsections entitled "Commercial Auto Coverage Part" and "Business Auto Coverage Form." The Business Auto Coverage Form provides in pertinent part: "Throughout this policy the words `you' and `your' refer to the Named Insured shown in the Declarations." In Section II-Liability Coverage, "insured" is defined as:
The following are "insureds"
a. You for any covered "auto"
b. anyone else while using with your permission a covered "auto" you own, hire or borrow except:
(1) The owner or anyone else from whom you hire or borrow a covered "auto". This exception does not apply if the covered "auto" is a "trailer" connected to a covered "auto."
(2) Your "employee" if the covered auto is owned by that "employee" or a member of his or her household.
(3) Someone using a covered "auto" while he or she is working in a business of selling, servicing, repairing, parking or storing "autos" unless that business is yours.
(4) Anyone other than your "employees", partners (if you are a partnership), members (if you are a limited liability company), or a lessee or borrower or any of their "employees" while moving property to or from a covered "auto."
(5) A partner (if you are a partnership) or a member (if you are a limited liability company) for a covered "auto" owned by him or her or a member of his or her household.
c. Anyone liable for the conduct of an "insured" described above, but only to the extent of that liability.
In "Section V — Definitions," "insured" is defined as: "any person or organization qualifying as an insured in the Who is An Insured provision of the applicable coverage." Aplt.App. at 53. In an endorsement entitled "Oklahoma Uninsured Motorists Coverage" (hereinafter: "UM/UIM endorsement") the "Who is an Insured" provision provides that an insured is:
1. You
2. If you are an individual, any "family member".
3. Anyone else "occupying" a covered "auto" or a temporary substitute for a covered "auto". The covered "auto" must be out of service because of its breakdown, repair, servicing, "loss," or destruction.
4. Anyone for damages he or she is entitled to recover because of "bodily injury" sustained by another "insured."
In an endorsement entitled "Auto Medical Payments Coverage," the "Who is Insured" provision states that an insured is:
1. You while "occupying" or, while a pedestrian, when struck by any "auto."
2. If you are an individual, any "family member" while "occupying or, while a pedestrian, when struck by any "auto"
3. Anyone else "occupying" a covered "auto" or a temporary substitute for a covered "auto". The covered "auto" must be out of service because of its breakdown, repair, servicing, loss or destruction.
Finally, there is an endorsement provision titled "Named Persons . . . As Insureds" which states as follows:
This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM, GARAGE COVERAGE FORM, TRUCKERS COVERAGE FORM . . .
Named Person(s) or Organizations(s): JOANN HABERMAN, AN INDIVIDUAL. . .
Each person or organization listed above is an "insured" for LIABILITY COVERAGE, but only to the extent that person or organization qualifies as an `insured' under the WHO IS INSURED provision of SECTION II — LIABILITY COVERAGE.
Aplt.App. at 64; 365.2 This provision also listed Haberman as an "additional insured." Id.
Section I "Covered Autos" under the Business Auto Coverage Form, states:
Item Two of the Declarations shows the "autos" that are covered "autos" for each of your coverages. The following numerical symbols describe the "autos" that may be covered "autos." The symbols next to a coverage on the Declarations designate the only "autos" that are covered "autos."
Aplt.App. at 45. The symbol "7" is defined as:
Specifically described "Autos" — only those "autos" described in Item Three of the Declarations for which a premium charge is shown (and for Liability Coverage any "trailers" you don't own while attached to any power unit described in Item Three).
Aplt. App. at 45. The commercial policy section titled "Item Two — Schedule of Coverages and Covered Autos," uses the symbol "07" under Uninsured Motorists Coverages.
The UM provisions in the policy only covered two automobiles, a 1988 Honda Accord and a 1999 Lexus LS400, which were listed under Symbol 7 of the Center's commercial automobile policy. The commercial policy section titled "Schedule of Limits Uninsured Motorist Coverage and Underinsured Motorists Coverage" states that the limits are designated as $300,000 each "accident."
On February 28, 2001, Haberman, through counsel, submitted initial correspondence to the Hartford stating, "We are making a claim under Dr. Haberman's uninsured motorist coverage." Ann Marie Mull was the Hartford adjuster assigned to the claim.
On March 27, 2001, Mull wrote Haberman's attorney a letter explaining that the Hartford had denied coverage because only the two scheduled vehicles under the policy (the 1988 Honda and the 1999 Lexus LS 400) were covered. Mull cited the definition of "Symbol 7" found in the Business Auto Coverage Form under the policy, as the basis for denial because Haberman was not riding in a covered vehicle under the commercial insurance policy. Mull also requested that Haberman provide any additional information that she wished the Hartford to consider on its decision to deny coverage.
On July 30, 2001, Haberman filed suit against the Hartford, alleging claims under the insurance contract and for bad faith failure to pay. The United States District Court for the Western District of Oklahoma exercised jurisdiction pursuant to 28 U.S.C. § 1441 et seq. and 28 U.S.C. § 1332, as the parties are completely diverse and the amount in controversy exceeded $75,000.
On May 28, 2002, the Hartford filed a motion for summary judgment which addressed the contract and bad faith claims. Haberman filed an objection to the Hartford's motion for summary judgment and a counter motion for summary judgment on the coverage issue. Applying Oklahoma law, the district court concluded, as a matter of law, that the Named Person endorsement is unambiguous and makes Haberman a named insured for all purposes under the policy. The trial court also made an alternative ruling that if there is any merit to the Hartford's interpretation of the endorsement, it is ambiguous and any ambiguity would be resolved in favor of Haberman based on parol evidence which includes the interpretations of the Hartford's adjusters. Based on these conclusions, the trial court entered summary judgment on the coverage issues in favor of Plaintiff Haberman.
The case proceeded to trial on August 11, 2003. At the conclusion of the evidence, Haberman moved for judgment as a matter of law on her contract claim. The motion was granted. The Hartford also made motions for judgment as a matter of law, but each time the grounds for the motion were limited to Haberman's bad faith cause of action. The motion as to the bad faith claim was denied.
The case then went to the jury. Haberman requested jury instructions which dealt with the specific duties of the Hartford, which the trial court declined to...
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