Nationwide Mut. Ins. Co. v. Prioleau
| Decision Date | 26 April 2004 |
| Docket Number | No. 3781.,3781. |
| Citation | 359 S.C. 238,597 S.E.2d 165 |
| Court | South Carolina Court of Appeals |
| Parties | NATIONWIDE MUTUAL INSURANCE COMPANY, Appellant, v. Julius PRIOLEAU and Paula Prioleau, Respondents. |
Robert C. Brown, of Columbia, for Appellant.
Arthur Aiken and Howard Hammer, of Columbia, for Respondents.
Nationwide Mutual Insurance Company brought this declaratory judgment action to determine whether Paula Prioleau was entitled to underinsured motorist (UIM) coverage under her automobile insurance policy purchased from Nationwide. The trial court found no meaningful offer of UIM coverage had been made to Paula, and she was therefore entitled to have her policy reformed to include UIM coverage up to the limits of the policy. Nationwide appeals. We reverse.
On April 25, 1997, Julius Prioleau applied for automobile insurance with Nationwide. The application was completed in the names of "Julius and Paula Prioleau," but only Julius went to the insurance agency to apply for the insurance, and only Julius signed as an applicant. At the same time that Julius signed the application, he was presented with an "Offer of Optional Additional Uninsured and Underinsured Automobile Insurance Coverages" form. This form described the available UIM coverage and requested that Julius either accept or reject the additional coverage. Julius alone signed the form, rejecting the UIM coverage. The policy issued by Nationwide, however, listed both "Julius and Paula Prioleau" as the named insureds.
On February 3, 1998, Paula Prioleau was involved in an automobile accident while driving one of the vehicles covered by the Prioleaus' policy with Nationwide. Paula sustained bodily injuries as a result of the accident and made a claim against the at-fault driver's insurance carrier. The at-fault driver's insurance carrier paid Paula the liability policy limits. Paula then asserted an underinsured motorist claim against Nationwide.
At trial, the parties presented the deposition testimony of both Paula and Julius, as well as the in-court testimony of Paula. In his deposition, Julius testified that normally he and his wife handled the acquisition of insurance together, and he could not remember why Paula did not accompany him when he obtained the policy from Nationwide. Paula testified by way of deposition that she did not have anything to do with the acquisition of the Nationwide insurance policy, and although she knew they had to obtain insurance, she did not know her husband was going to get it that day. She could not remember whether it was she or her husband who handled getting their insurance in the two years between the time they returned from Germany in 1995 until Julius acquired the Nationwide policy in 1997. In her testimony before the trial court, Paula stated that Julius did not have authority from her to act as her agent in connection with the application of insurance with Nationwide. She admitted, however, that she knew her husband was "going to get some insurance," and she did not object to him going and getting the insurance, "because [she] didn't know when he was going."
Nationwide argued the rejection of UIM coverage form signed by Julius Prioleau was a valid rejection under South Carolina law, and it was not required to also obtain the signature of Paula rejecting UIM coverage, as Julius was the named insured and the only applicant for the policy. Alternatively, Nationwide claimed that the form was sufficient because Julius was acting as the agent for his wife when he obtained the insurance policy. The trial court rejected both claims and ordered the Prioleaus' policy be reformed to include underinsured motorist coverage up to the liability limits of the policy.
Nationwide appeals, arguing the trial court erred in ruling a valid and effective offer of UIM coverage had not been made when (1) such an offer had been made to and rejected by Julius Prioleau as the named insured and applicant for the policy and (2) such an offer had been made to and rejected by Julius Prioleau as the agent for his wife, Paula Prioleau. Because we find Julius necessarily acted as the agent for Paula, we reverse the trial court.
A suit for declaratory judgment is neither legal nor equitable, but is determined by the nature of the underlying issue. Antley v. Nobel Ins. Co., 350 S.C. 621, 625, 567 S.E.2d 872, 874 (Ct.App.2002). As the underlying issue in the present case involves determination of coverage under an insurance policy, the action is at law. State Farm Mut. Auto. Ins. Co. v. Calcutt, 340 S.C. 231, 237, 530 S.E.2d 896, 898 (Ct.App.2000). In an action at law, tried without a jury, the trial judge's factual findings will not be disturbed on appeal unless a review of the record reveals there is no evidence which reasonably supports the judge's findings. Id. Allstate Ins. Co. v. Estate of Hancock, 345 S.C. 81, 84, 545 S.E.2d 845, 846 (Ct.App.2001) (quoting WDW Props. v. City of Sumter, 342 S.C. 6, 10, 535 S.E.2d 631, 632 (2000)).
In addressing the agency issue, the trial court found the facts of the case did not support Nationwide's position that an agency relationship existed between Paula and Julius. In support of this finding, the court noted the uncontradicted testimony of Paula that "she was not aware of her husband's intention to sign the offer form and that she did not give her husband authority to act on her behalf, in any way, in matters having to do with automobile insurance." We find the trial judge...
To continue reading
Request your trial
-
Hodge v. Unihealth Post-Acute Care of Bamberg, LLC, Appellate Case No. 2015-001183
...inferred from the words and conduct of the parties and the circumstances of the particular case." Nationwide Mut. Ins. Co. v. Prioleau , 359 S.C. 238, 242, 597 S.E.2d 165, 168 (Ct. App. 2004). Stiltner v. USAA Cas. Ins. Co. , 395 S.C. 183, 189, 717 S.E.2d 74, 77 (Ct. App. 2011) (alterations......
-
State v. Sweat
...such cases, the appellate court is not required to defer to the trial court's legal conclusions." Nationwide Mut. Ins. Co. v. Prioleau, 359 S.C. 238, 242, 597 S.E.2d 165, 167 (Ct.App.2004) (quotation and citation omitted). When addressing novel question of law, the appellate court is free t......
-
Lollis v. Dutton, Appellate Case No. 2015-001861
...inferred from the words and conduct of the parties and the circumstances of the particular case." Nationwide Mut. Ins. Co. v. Prioleau, 359 S.C. 238, 242, 597 S.E.2d 165, 168 (Ct. App. 2004).The law creates the relationship of principal and agent if the parties, in the conduct of their affa......
-
Allstate Fire & Cas. Ins. Co. v. Simpson
...J. 7–11, ECF No. 21–1.) Allstate relies heavily on the South Carolina Court of Appeals decision in Nationwide Mutual Insurance Co. v. Prioleau, 359 S.C. 238, 597 S.E.2d 165 (App.2004). The existence and scope of an agency relationship are questions of fact. Holmes v. McKay, 334 S.C. 433, 51......
-
In Good Times and in Debt: the Evolution of Marital Agency and the Meaning of Marriage
...Nwannunu v. Weichman and Associates, P.C., 770 N.E.2d 871 (Ind. Ct. App. 2002) (same); Nationwide Mut. Ins. Co. v. Prioleau, 597 S.E.2d 165 (S.C. Ct. App. 2004). 144. See, e.g., Bayes v. Isenberg, 429 N.E.2d 654, 659 (Ind. Ct. App. 1981) (indicating that to establish an agency relationship,......