Jones v. Western Reserve Group/Lightning Rod Mut. Ins. Co.

• Decision Date: 16 September 1998
• Docket Number: No. 68A05-9708-CV-326,68A05-9708-CV-326
• Citation: 699 N.E.2d 711
• Parties: Christa JONES, Deborah Wright, and John Wright, Appellants-Plaintiffs, v. WESTERN RESERVE GROUP/LIGHTNING ROD MUTUAL INSURANCE COMPANY, Appellee-Defendant.
• Court: Indiana Appellate Court

Page 711

699 N.E.2d 711

Christa JONES, Deborah Wright, and John Wright, Appellants-Plaintiffs, v. WESTERN RESERVE GROUP/LIGHTNING ROD MUTUAL INSURANCE

COMPANY, Appellee-Defendant.

No. 68A05-9708-CV-326.

Court of Appeals of Indiana.

Sept. 16, 1998.

Rehearing Denied Oct. 16, 1998.

Karl L. Mulvaney, James P. Strenski, Candace L. Sage, Bingham Summers Welsh & Spilman, Indianapolis, R.T. Green, Blackburn & Green, Fort Wayne, for Appellants-Plaintiffs.

Alan A. Bouwkamp, Renae L. Hermann, Jennings Taylor Wheeler & Bouwkamp, P.C., Carmel, for Appellee-Defendant.

OPINION

SULLIVAN, Judge.

Appellants, Christa Jones (Jones), Deborah Wright, and John Wright (the Wrights), appeal the trial court's order granting summary judgment in favor of Western Reserve Group/Lightning Rod Mutual Insurance Company (Western Reserve).

We reverse.

The appellant's sole contention upon appeal is whether the trial court erred in determining that, as a matter of law, on July 12, 1994, Jones was not a "resident" of the Wrights' household ¹ within the context of the Wrights' automobile liability insurance policy (Policy), which provided uninsured/underinsured motorist coverage for any family member who was a "resident" of the Wrights' household. We hold that summary judgment is inappropriate because the evidence presented reasonably creates conflicting inferences concerning the ultimate fact of Jones' residency status under the Policy.

In April of 1992, Jones moved with her mother Deborah Wright and her stepfather John Wright to Winchester, Indiana, from California. At that time, Jones enrolled in the ninth grade at Winchester High School. During Jones' sophomore year, classmates spread rumors of a sexual nature about her. As a result, Jones considered quitting high school. Instead, on March 15, 1993, Jones moved into the home of her aunt Kathy Frame (Frame), who resided in Richmond, Indiana. The predominant purpose of this move apparently was to encourage Jones to complete high school. Jones brought clothes and various personal items with her to Richmond; however, she left some clothes, a television and her stereo at the home in Winchester. Once Jones moved out of the Winchester home, her younger brother began sleeping in Jones' former bedroom, although personal items of Jones continued to be stored in the room.

Frame accompanied and assisted Jones in enrolling in classes at Richmond High School. In order to enroll Jones, Frame and the Wrights executed a custody statement claiming that Jones lived at her aunt's address. While living with Frame, Jones did not have her own room. Instead, Jones slept either on a mattress in the bedroom of Frame's ten-year-old daughter or on the couch. While Jones stayed with Frame, the Wrights helped pay for groceries, rent and other items.

Following her sophomore year, Jones moved into an efficiency apartment located in Richmond. According to Jones, she did not want to be "a burden" to Frame, and she wanted to "try and make it out on [her] own." Record at 190. Although Jones was employed at the time, the Wrights helped to furnish the apartment and assisted Jones in meeting her rent obligations. However, approximately three months later, Jones moved out of the apartment, after she lost her job and could no longer afford to pay her rent. She then moved in with Jackie Jones, another aunt residing in Richmond, with whom she stayed for approximately seven months. In May of 1994, during the spring of her junior year, Jones moved into a second apartment with two of her high school friends.

Jones continued living in this second apartment until July 12, 1994. On that day, Jones was involved in an automobile accident in which she was a passenger in a vehicle operated by her boyfriend, Kevin Gibson. She was critically injured in the collision and upon her release from the hospital returned to the Wright home in Winchester to recover. In October of 1994, Jones re-enrolled at Winchester High School.

On or about June 14, 1994, Western Reserve issued the Policy to the Wrights. After receiving twenty thousand dollars from Kevin Gibson's insurer, Jones and the Wrights requested compensation per the underinsured motorist provisions of the Western Reserve Policy. Western Reserve investigated the claim but ultimately determined that Jones was not covered, because she was not a "resident" of the Wrights' household at the time of the accident.

On June 13, 1995, Jones and the Wrights filed a complaint for declaratory judgment against Western Reserve, seeking a determination that Jones was covered as an insured under the Policy. On July 20, 1995, Western Reserve filed its answer and counterclaim for declaratory judgment, requesting a finding that the Policy did not cover Jones. Both parties subsequently filed motions for summary judgment. After a hearing, the trial court on May 1, 1997, granted Western Reserve's motion for summary judgment and denied Jones' and the Wrights' motion for summary judgment.

We must carefully scrutinize an entry of summary judgment in order to ensure that the non-prevailing party is not denied her day in court. General Motors Corp. v. Northrop Corp. (1997) Ind.App., 685 N.E.2d 127, 132, reh'g denied. Summary judgment is appropriate where the designated evidentiary material demonstrates that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. Ind. Trial Rule 56(C); Miller Brewing Co. v. Bartholemew County Beverage Co., Inc. (1997) Ind.App., 674 N.E.2d 193, 198, trans. denied. The burden is upon the moving party to establish, prima facie, that no genuine issues of material fact exist and that she is entitled to judgment as a matter of law. Chance v. State Auto Ins. Co. (1997) Ind.App., 684 N.E.2d 569, 570, trans. denied. The burden then falls upon the opponent to respond by setting forth specific facts demonstrating a genuine issue for trial. Id.

On appeal, we must apply the same standard as the trial court and resolve any disputed fact or inference in favor of the non-movant. Abbott v. Bates (1996) Ind.App., 670 N.E.2d 916, 921, reh'g denied. In order to prevail, the appealing party must establish the existence of a genuine issue of material fact from those materials designated to the trial court. Miller Brewing, supra, 674 N.E.2d at 198; Wiggam v. Associates Fin. Serv. of Ind., Inc. (1997) Ind.App., 677 N.E.2d 87, 90, trans. denied. Genuine issues of material fact exist where facts concerning an issue which would dispose of litigation are in dispute. General Motors, supra, 685 N.E.2d at 132. Even if the trial court believes that the non-moving party will not prevail at trial, summary judgment is not appropriate and may not be entered where conflicting inferences arise from the undisputed facts. Id.

In the instant case, the trial court entered specific findings and conclusions. However, the entry of such findings and conclusions does not change our standard of review. Allstate Indem. Co. v. Brown (1998) Ind.App., 696 N.E.2d 92, 94. Summary judgment orders do not require specific findings or conclusions. Id. While the trial court's findings and conclusions offer valuable insight into the rationale for its judgment and facilitate appellate review, they are by no means binding upon this court. Id.

The dispute involves the interpretation of an insurance contract. Specifically, construction of the term "resident" is at issue. The Policy's underinsured motorist provisions cover any "family member," which is defined as "a person related to [the insureds] by blood, marriage or adoption who is a resident of [the insureds'] household." Record at 20 (emphasis supplied). "Resident" is not further defined in the Policy.

In interpreting a contract for insurance, we use the same rules of construction and interpretation as apply to other contracts. Smith v. Allstate Ins. Co. (1997) Ind.App., 681 N.E.2d 220, 223. Where a policy's language is clear and without ambiguity, it should be given its plain and ordinary meaning. Erie Ins. Exch. v. Stephenson (1997) Ind.App., 674 N.E.2d 607, 609. Contractual language is ambiguous when it is susceptible to more than one interpretation and reasonably intelligent persons would differ as to its meaning. Smith, supra, 681 N.E.2d at 223. Moreover, no rule of insurance policy construction mandates that each and every contractual term be defined. Id. Courts will not deem a contract's language ambiguous merely because each party to a dispute favors a different interpretation. Id.

We do not find the term "resident," as used in the Policy, to be ambiguous on its face. However, because the parties left the term "resident" undefined, we must apply the common law of Indiana to flesh out its meaning. ² As a general principle, "resident" has no fixed or precise meaning in the law. Allstate Ins. Co. v. Neumann (1982) Ind.App., 435 N.E.2d 591, 593; See generally David B. Harrison, Annotation, Who is "resident" or "member" of same "household" or "family" as named insured, within liability insurance provision defining additional insureds, 93 A.L.R.3d 420 (1979 & Supp.1998). As noted by the court in Neumann, "It is an amorphous term that ... has as many colors as Joseph's coat." Neumann, supra, at 593 (citing Weible v. United States, 244 F.2d 158 (9th Cir.1957)).

In determining one's residency status under an auto liability insurance contract, Indiana courts consider the following factors: (1) whether the claimant maintained a physical presence ³ in the named insured's home; (2) whether she possessed the subjective intent ⁴ to reside therein; and (3) the nature of her access to the named insured's home and its contents. Chance, supra, 684 N.E.2d at 571; Neumann, supra, 435 N.E.2d at 594. In addition, the fact finder must consider all of the evidence indicative of the claimant's living habits. Aetna Casualty & Sur. Co. v. Crafton (1990) Ind.App., 551 N.E.2d 893, 895. These factors should be considered in the...