Miss. Farm Bureau Cas. Ins. Co. v. Powell

• Decision Date: 07 April 2022
• Docket Number: 2020-IA-00432-SCT
• Citation: 336 So.3d 1079
• Parties: MISSISSIPPI FARM BUREAU CASUALTY INSURANCE COMPANY v. Anthony POWELL and Trent Craft
• Court: Mississippi Supreme Court

336 So.3d 1079

MISSISSIPPI FARM BUREAU CASUALTY INSURANCE COMPANY

v.Anthony POWELL and Trent Craft

NO. 2020-IA-00432-SCT

Supreme Court of Mississippi.

April 7, 2022

ATTORNEYS FOR APPELLANT: SAM STARNES THOMAS, OWEN PATRICK TERRY, Madison

ATTORNEYS FOR APPELLEES: WILLIAM KANNAN STUBBS, MARK K. TULLOS, Raleigh

EN BANC.

RANDOLPH, CHIEF JUSTICE, FOR THE COURT:

¶1. Trent Craft accidentally fell on a trailer owned and used by Anthony Powell that was hitched to a pickup truck owned and used by Powell. Powell had purchased an automobile insurance policy issued by Mississippi Farm Bureau Casualty Insurance Company (Farm Bureau). Farm Bureau filed a complaint against Powell and Craft seeking a declaration that it did not provide coverage for the incident and had no duty to defend and/or indemnify Powell under the liability coverage of its policy with regard to claims of Craft and that Farm Bureau had no obligation to Craft under the medical payments coverage of its policy. The trial court denied Farm Bureau's motion for summary judgment, and this Court granted Farm Bureau's petition for an interlocutory appeal. We affirm the decision of the trial court denying Farm Bureau's summary judgment motion.

FACTS AND PROCEDURAL HISTORY

¶2. This case commenced when Farm Bureau sought a declaratory judgment. Powell filed an answer and counterclaim, arguing that Farm Bureau wrongfully had denied coverage for the accident, inter alia . Powell requested damages and a declaratory judgment that he was entitled to a defense. Craft answered and cross-claimed for damages against Powell. Craft pled that the accident occurred while working for Powell on or about August 16, 2017.

¶3. Farm Bureau took depositions of Craft and Powell from which the following facts were developed. Powell drove the insured pickup and trailer loaded with the scaffolding to the job site. At the job site, the scaffolding was erected on the trailer to access the installation of trusses for a pole barn. Craft was assisting another worker, Carl Garner, installing trusses for the roof of a pole barn. A ladder was provided for the workers to get up or on the scaffolding and to get on or off the scaffolding. At all times, the trailer was hitched to Powell's 2000 Ford F250 truck.¹ Craft and Powell described the truss installation process. Craft said that he and Garner used the scaffolding on the trailer to install each truss. When Craft and Garner finished installing a truss, Powell would drive the truck and trailer forward to the next truss position, while Craft and Garner remained on the scaffolding. Once at the next installation point, Powell would turn off the truck's engine and exit the truck to do other tasks while Craft and Garner installed that truss. After some trusses had been installed, it was time to break for lunch. The truck's engine was off. Garner and Craft were dismounting from the scaffolding and trailer to eat lunch. Garner was getting off first, and he jumped onto the bed of the trailer, which caused the trailer hitched to the pickup to rock. Craft plummeted onto the trailer bed, and his head struck the bed of the trailer, which caused, inter alia , severe injury to an eye socket. Craft testified that the accident would not have occurred if Powell had chocked the tires of the truck and trailer.

¶4. Farm Bureau filed a motion for summary judgment, arguing that the accident was not covered by either the liability or medical payments provisions of its policy. After a hearing, the trial court denied the motion.

STATEMENT OF THE ISSUES

¶5. Farm Bureau's brief claims that the sole issue is whether an "auto accident" occurred. In its brief, Farm Bureau requested that this Court retain this matter, for it presents "a major question of first impression," because the term "auto accident" has never been directly addressed by this Court. Powell and Craft responded that the issue is "whether the circuit court erred by denying Farm Bureau's motion for summary judgment seeking to avoid coverage of the bodily injury claim asserted by Trent Craft under the automobile policy it issued to Anthony Powell." In its reply brief, Farm Bureau asks this Court to reverse and render judgment in favor of Farm Bureau, declaring as a matter of law that Farm Bureau has no duty to defend or indemnify Powell and that Farm Bureau has no medical payment obligation to Craft.

¶6. The following language is taken verbatim from the policy:

PERSONAL AUTO POLICY

AGREEMENT

Various provisions in this policy restrict coverage. Read the entire policy carefully to determine your rights, duties, and what is covered and not covered. In exchange for the premium paid by you, and for your compliance with all the applicable provisions of this policy, we will provide specific insurance coverage. The coverage provided is limited to that shown in the Declarations and/or endorsements and for which any required premium is paid. Coverage described in the policy is not provided unless also shown in the Declarations and Endorsements as applicable. The Declarations and all applicable endorsements are hereby deemed to be a part of this policy. Words and phrases that appear in bold print have special meaning. Refer to DEFINITIONS.

DEFINITIONS

D. Auto means a land motor vehicle or a trailer designed for travel on public roads but does not include mobile equipment.

E. Bodily Injury means physical injury to the body of, or sickness or disease sustained by a natural person ...

G. Covered auto means:

(1) any auto shown in the Declarations for a which a premium charge is shown

(2) any newly acquired auto

(3) any trailer you own.

P. Occupying means:

(1) in;

(2) upon; or

(3) getting in, on, out, or off.

U. Trailer means a vehicle designed to be pulled by a:

(1) private passenger auto

(2) or pickup or van.

PART A-LIABILITY COVERAGE

INSURING AGREEMENT

A. We will pay damages for bodily injury or property damage for which any insured becomes legally responsible because of an auto accident and arising out of the ownership, maintenance, or use of any covered auto including loading and unloading thereof. Damages include prejudgment interest awarded against any insured . We will settle or defend, as we consider appropriate, any claim or suit asking for these damages. In addition to our limit of liability. We will pay all defense costs we incur. Our duty to settle or defend ends when our limit of liability for this coverage has been exhausted by payment of judgment or settlements. We have no duty to defend any suit or settle any claim for bodily injury or property damage not covered under this policy.

LIMIT OF LIABILITY

B. Any covered auto and attached trailer and/or trailers are considered to be one unit for purposes of Part A-liability coverage .

PART B-MEDICAL PAYMENT COVERAGE AND DEATH INDEMNITY COVERAGE

INSURING AGREEMENT

A. [Farm Bureau] will pay reasonable expenses under Medical Payments Coverage for necessary medical and funeral services because of bodily injury (1) caused by an auto accident and (2) sustained by any insured .

.... C. Insured as used in A. MEDICAL PAYMENTS COVERAGE under PART B-MEDICAL PAYMENTS COVERAGE and DEATH INDEMNITY COVERAGE means:

1. You or any family member :

a. while occupying , or

b. as a pedestrian when struck by; any auto

2. Any other person while occupying with your permission any covered auto .

....

PART D-COVERAGE FOR DAMAGE TO YOUR AUTO

A. We will pay for direct and accident loss to any covered auto or any nonowned auto , including its equipment, minus any applicable deductible shown in the Declarations for loss caused by:

1. Collision , but only if the Declarations indicate that coverage is provided under Part D-Coverage For Damage To Your Auto for collision for that particular covered auto .

....

B. Collision means the overturn of any covered auto, or its impact with another vehicle or object. Collision does not mean fire, theft, collision with bird or animal, or breakage of glass. However, you may elect to have breakage of glass considered a loss caused by collision .²

....

PART F-GENERAL PROVISIONS

A. This policy contains all the agreements between you and us concerning the insurance afforded.

¶7. The phrase "auto accident" is not defined within the four corners of the insuring agreement.

STANDARD OF REVIEW

¶8. This Court applies de novo review to a trial court's summary judgment ruling. Miss. Baptist Med. Ctr., Inc. v. Phelps , 254 So. 3d 843, 845 (Miss. 2018) (citing Leffler v. Sharp , 891 So. 2d 152, 156 (Miss. 2004) ). When the sole issue under consideration is the interpretation of the insurance policy, it presents a question of law that is reviewed de novo. Corban v. United Servs. Auto. Ass'n , 20 So. 3d 601, 609 (Miss. 2009) (quoting Noxubee Cnty. Sch. Dist. v. United Nat'l Ins. Co. , 883 So. 2d 1159, 1165 (Miss. 2004) ; Delashmit v. State , 991 So. 2d 1215, 1218 (Miss. 2008) ).

DISCUSSION

¶9. Farm Bureau argues that its insurance contract on the vehicles (truck and trailer) owned and used by Anthony Powell fails to provide liability coverage for Powell and fails to provide medical payments coverage related to the injuries suffered by Craft. Farm Bureau asks the court to define a term, "auto accident," found in its policy but not defined in the same policy. To support its plea, Farm Bureau primarily relies on language selected from two unrelated cases, Bryant v. Allstate Insurance Co. , 790 F. Supp. 676 (S.D. Miss. 1991), and Alfa Insurance Corp. v. Ryals , 918 So. 2d 1260 (Miss. 2005), to provide the definition for the phrase "auto accident." No court in Mississippi has addressed "auto accident" in this context, but appellate courts in other states have. Appellate courts in Florida, Idaho, and South Dakota have declined to adopt such a narrow interpretation, as Farm Bureau seeks in this case.

¶10. "Ambiguities exist when an insurance policy can logically be interpreted in two or more ways." Cont'l Cas. Co. v. Allstate Prop. & Cas. Ins. Co. , 235 So. 3d 40, 50 (Miss. 2017) (internal quotation marks omitted) (quoting U.S. Fid. &...