Murphy v. Milbank Mut. Ins.

• Decision Date: 11 June 1982
• Docket Number: 82-24.,No. 81-1355,81-1355
• Citation: 320 NW 2d 423
• Parties: Mary E. MURPHY, individually and as trustee for the heirs of Gary K. Murphy, Decedent, Respondent, v. MILBANK MUTUAL INSURANCE and Kemper Insurance Companies, Appellants.
• Court: Minnesota Supreme Court

320 N.W.2d 423 (1982)

Mary E. MURPHY, individually and as trustee for the heirs of Gary K. Murphy, Decedent, Respondent, v. MILBANK MUTUAL INSURANCE and Kemper Insurance Companies, Appellants.

Nos. 81-1355, 82-24.

Supreme Court of Minnesota.

June 11, 1982.

Sally Holmgren and Clarence E. Hagglund, Minneapolis, for Milbank Mut. Ins. Co.

Arndt & Benton and Duane E. Arndt, Minneapolis, for Kemper Ins. Co.

David Sandberg, Forest Lake, for Murphy.

Heard, considered and decided by the court en banc.

PETERSON, Justice.

These appeals arise out of a declaratory judgment action to determine insurance coverages for the motor vehicle death of a Minnesota resident in Iowa. The trial court granted summary judgment for decedent's spouse, holding that the Iowa vehicle with which decedent's truck collided was an "uninsured motor vehicle." Summary judgment was also granted in favor of the nofault carrier for decedent's family automobiles, declaring that basic economic loss benefits could not be stacked across priority levels. We affirm.

The parties have stipulated to the following facts:

Gary K. Murphy died as a result of injuries sustained in an automobile/truck collision in Bremer County, Iowa, on October 29, 1977. Plaintiff Mary E. Murphy is decedent's surviving spouse, parent and guardian of his daughter and duly appointed trustee for his heirs and next-of-kin.

The automobile involved in the accident was owned and driven by Walter G. Engel, a resident of Iowa. His vehicle was registered and garaged in Iowa and insured for bodily injury liability in the sum of $10,000 per injury and $20,000 per occurrence — such limits being in accordance with Iowa law. (Engel's insurer has paid out under the policy in settlement of the claim against it and is not a party to this action.)

Gary Murphy was driving a semi-tractor trailer owned by United States Industries, Inc. and registered in Minnesota. At the time of the accident, the truck was insured by defendant American Motorists Insurance Company (Kemper Insurance Companies) under a policy entered into outside of Minnesota.

Gary and Mary Murphy owned two family automobiles registered in Minnesota. At the time of the accident, these vehicles were insured by defendant Milbank Mutual under policies issued in Minnesota.

1. Mary Murphy argued before the trial court that the Engel vehicle falls within our statutory definition of "uninsured motor vehicle." Minn.Stat. § 65B.49, subd. 4(3) (1976), defines an "uninsured motor vehicle" as "any motor vehicle for which a plan of reparation security meeting the requirements of sections 65B.41 to 65B.71 is not in effect." One requirement incorporated by reference into that definition is the minimum residual liability insurance amount of $25,000 per person/$50,000 per accident. Minn.Stat. § 65B.49, subd. 3(1) (1980). The Engel policy carries limits less than the minimum and therefore, Murphy argues, Engel was an uninsured motorist.

Milbank Mutual and Kemper Insurance suggest another interpretation of subd. 4(3). Emphasizing the word "requirements," they point out that none of the requirements of the Minnesota no-fault law apply to an Iowa driver on Iowa roads. This reading of the statutory definition must be rejected, because it would force us to conclude that Engel was not "uninsured" even if he carried no insurance. Nonetheless, insurers claim that Engel's compliance with Iowa law somehow satisfies the definitional test and removes his vehicle from the class of uninsured vehicles.

This is a straightforward issue of statutory construction and the provision in question is unambiguous. The legislature chose to classify uninsured vehicles by reference to Minnesota liability coverage requirements, and we have held that an "uninsured motor vehicle is one which does not carry insurance meeting the minimum legal requirements" of the Minnesota No-Fault Automobile Insurance Act. DiLuzio v. Home Mutual Insurance Co., 289 N.W.2d 749, 751 (Minn.1980). Thus, the trial court properly ruled that the Engel vehicle, carrying only $10,000 liability coverage for one person injured in one accident, was an "uninsured motor vehicle."

2. The facts of this case raise the possibility of stacking the coverage provided by Kemper Insurance on the United States Industries truck and that provided by Milbank Mutual on the Murphy family automobiles. The trial court held that plaintiff could stack the uninsured motorist coverages, following the "closest to the risk" doctrine for apportioning liability between the insurance companies. See Integrity Mutual Insurance Co. v. State Automobile & Casualty Underwriters Insurance Co., 307 Minn. 173, 239 N.W.2d 445 (1976). This ruling of the trial court has not been challenged on appeal.

The trial court...