Hogan v. State Farm Mut. Auto. Ins. Co.
Decision Date | 04 September 1998 |
Citation | 730 So.2d 1157 |
Parties | Allison D. HOGAN and Joseph D. Hogan, Jr. v. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY. |
Court | Alabama Supreme Court |
Belinda M. Kimble, Birmingham; and Samuel L. Masdon of Masdon & Masdon, Haleyville, for plaintiffs.
Ronald G. Davenport and William H. Webster of Rushton, Stakely, Johnston & Garrett, Montgomery, for defendant.
The United States District Court for the Middle District of Alabama, acting pursuant to Rule 18, Ala.R.App.P., has certified to this Court the following question:
"Is an automobile covered under a liability insurance policy considered an `uninsured motor vehicle' under the Alabama Uninsured Motorist Act, 1975 Ala.Code, § 32-7-23, for the purpose of the passenger in the same automobile recovering from her own separate uninsured motorist coverage when she is barred from recovering in negligence from the liability policy covering the driver of the automobile because of the Alabama Guest Statute, 1975 Ala.Code, § 32-1-2?"
The facts, as submitted by the district court, are as follows:
(Emphasis in the original.)
The certified question presented to us requires an interpretation of two Alabama statutes, viz.: the so-called Alabama Guest Statute, § 32-1-2, Ala.Code 1975, and the Uninsured Motorist Statute, § 32-7-23, Ala. Code 1975. The Guest Statute provides:
"The owner, operator or person responsible for the operation of a motor vehicle shall not be liable for loss or damage arising from injuries to or death of a guest while being transported without payment therefor in or upon said motor vehicle, resulting from the operation thereof, unless such injuries or death are caused by the willful or wanton misconduct of such operator, owner or person responsible for the operation of said motor vehicle."
§ 32-1-2, Ala.Code 1975. The Uninsured Motorist Statute provides that automobile insurance policies issued in this state shall cover "persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of" injury. § 32-7-23(a), Ala. Code 1975.
The basic question we are asked to answer is whether the Hogans can recover under the terms of their uninsured motorist policy even though they cannot recover from the alleged tortfeasor because the tortfeasor is immune from liability through the operation of the Guest Statute. The Hogans claim that the fact that the Guest Statute immunizes the tortfeasor does not affect their right to recover uninsured motorist benefits. They cite this Court's decision in State Farm Mut. Auto. Ins. Co. v. Jeffers, 686 So.2d 248 (Ala.1996), in support of their argument that the alleged tortfeasor, Brunson, should be deemed "uninsured." We agree with their argument.
In Jeffers, which also involved a certified question from a federal court, a collision occurred between an automobile driven by the plaintiff, Mrs. Jeffers, and an automobile driven by a Houston County sheriff's deputy. This Court held that "[b]ecause of the application of the doctrine of substantive immunity, Deputy Anderson, in effect, was not insured." 686 So.2d at 250. In Jeffers, the deputy's vehicle was covered by an insurance policy, as the alleged tortfeasor's vehicle is in this case. Except for the fact that the Jeffers case involved an application of the doctrine of substantive immunity and this case involves an application of the Guest Statute, we believe that these cases are so similar that the same principle of law that was applied in Jeffers should be applied in this case.
The decision in Jeffers was based in large part on this Court's interpretation of the Uninsured Motorist Statute in State Farm Auto. Ins. Co. v. Baldwin, 470 So.2d 1230 (Ala.1985). In Baldwin, this Court held that an insured who was precluded from suing the owner or the operator of an uninsured motor vehicle was nevertheless "legally entitled to recover damages" under the Uninsured Motorist Statute.
State Farm argues that Jeffers and Baldwin should not control this case, arguing that "[u]nlike the plaintiffs in those two cases, Mrs. Hogan is not barred from recovery." State Farm contends that she "simply has a higher burden to meet than that of ordinary negligence." We cannot accept that distinction. As we view our holding in Jeffers, it was based on an interpretation of the intent of the Legislature in adopting the Uninsured Motorist Statute. In Jeffers, the fact that the plaintiff could not sue the tortfeasor because of the doctrine of substantive immunity did not affect the plaintiffs legal right to recover damages. In response to State Farm's argument that this case is distinguishable on the basis that the plaintiffs here "simply [have] a higher burden to meet," we note that the Court of Appeals, in McDonald v. Amason, 39 Ala.App. 492, 104 So.2d 716 (1958), held that "the very wording of the [Guest Statute] ..., shows that its purpose is only to preclude recovery under degrees of fault rising only to the level of negligence." 39 Ala.App. at 494-95, 104 So.2d at 718 (emphasis added). We agree with the plaintiffs that the reasoning this Court used in Jeffers and Baldwin controls here.1
We answer the question in the affirmative. The passenger, even though she may be precluded from suing the owner or the operator of the vehicle in which she was a passenger, because of the provisions of the guest statute, may nevertheless be "legally entitled to recover damages" under the Uninsured Motorist Statute.
CERTIFIED QUESTION ANSWERED.
SEE and LYONS, JJ., dissent.
I respectfully dissent because I consider the holdings of State Farm Auto. Ins. Co. v. Baldwin, 470 So.2d 1230 (Ala.1985), and State Farm Mut. Auto. Ins. Co. v. Jeffers, 686 So.2d 248 (Ala.1996), to misapply the rather plain limitation in § 32-7-23(a), Ala. Code 1975. The statute requires coverage for persons carrying uninsured motorist insurance when such persons are "legally entitled to recover damages from owners or operators of uninsured motor vehicles." Id. I believe that whether an insured is "legally entitled to recover" depends entirely on the merits of the insured's claim against a tortfeasor under the laws of the state. However, today's decision, like Baldwin and Jeffers, has construed that phrase to mean "legally entitled to recover but for a defense that does not arise out of any wrongful conduct of the insured," a defense such as immunity or an insured's status as a guest.
Under the majority's expansive rationale, an employee/ passenger in a company-owned automobile who is precluded, by § 25-5-11, Ala.Code 1975, from recovering against a fellow employee/ driver for negligence or wanton misconduct would be entitled to payment under his or her uninsured motorist coverage.2 The expansive interpretation the majority reiterates today, which is not in harmony with the law of other states,3 has not provoked any amendments...
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