Nationwide Mut. Ins. Co. v. Krongold

• Decision Date: 05 April 1974
• Citation: 318 A.2d 606
• Parties: NATIONWIDE MUTUAL INSURANCE COMPANY, an Ohio corporation, Plaintiff, v. Lewis KRONGOLD et al., Defendants.
• Court: Supreme Court of Delaware

Page 606

318 A.2d 606

NATIONWIDE MUTUAL INSURANCE COMPANY, an Ohio corporation, Plaintiff, v. Lewis KRONGOLD et al., Defendants.

Supreme Court of Delaware.

April 5, 1974.

Upon certification from Superior Court.

Charles K. Keil and Richard K. Herrmann of Bayard, Brill & Handelman, Wilmington, for plaintiff.

David Roeberg of Potter & Roeberg, Wilmington, for defendants.

CAREY and DUFFY, Justices, and BROWN, Vice-Chancellor, sitting.

BROWN, Vice-Chancellor.

In this matter certification was accepted from the Superior Court pursuant to Rule 20, Del.C.Ann., on six separate questions of law. By subsequent stipulation of the parties it was agreed that the first question certified was of the more pressing importance and should be resolved in advance of any decision on the others. The issue thus presently before the Court is an interpretation of a provision of the Delaware Motorist Protection Act (commonly referred to as the Delaware 'no-fault' insurance law) which became effective on May 27, 1971.

This statute is found at 21 Del.C. § 2118 and, as to that portion of it here applicable, it reads as follows:

'(a) No owner of a motor vehicle registered in this State, other than a self-insurer pursuant to § 2906 of Title 21, Delaware Code, shall operate or authorize any other person to operate such vehicle unless the owner has insurance on such motor vehicle providing the following minimum insurance coverage:

'(1) Indemnity from legal liability for bodily injury, death or property damage arising out of ownership, maintenance or use of the vehicle To the limit, exclusive of interest and costs, of at least $25,000 for any 1 accident or to the limit of the Financial Responsibility Law of this State, whichever is greater.' (Emphasis added)

Subsection (a)(2) of Section 2118 sets forth the required personal injury protection coverage for injuries, medical expenses and other damages arising out of an accident involving the insured vehicle regardless of liability. This is the 'no-fault' provision. The amount of this coverage is established as follows in the last two sentences of 21 Del.C. § 2118(a)(2):

'This compensation shall have minimum limits of $10,000 for any 1 person and $20,000 for all persons injured in any 1 accident. The compensation for funeral services pursuant to subsection (a)(2) shall not exceed the sum of $2,000 per person.' (Emphasis added)

The Financial Responsibility Law referred to in Subsection (a)(1), and which is found at 21 Del.C. § 2904, reads in pertinent part as follows:

'(b) Such owner's policy of liability insurance shall--

'(2) Insure the person named therein and any other person, as insured, using any such motor vehicle or motor vehicles with the express or implied permission of such named insured, Against loss from the liability imposed by law for damages arising out of the ownership, maintenance or use of such motor vehicle or motor vehicles within the United States of America or the Dominion of Canada, Subject to limits exclusive of interest and costs, with respect to each such motor vehicle, as follows: $10,000, because of bodily injury to or death of one person in any one accident and, subject to said limit for one person, $20,000, because of bodily injury to or death of two or more persons in any one accident, and $5,000, because of injury to or destruction of property of others in any one accident.' (Emphasis added)

The emphasized portions of the foregoing statutes form the basis for the question certified, which is stated as follows:

'Does the minimum coverage required pursuant to 21 Del.C. § 2118(a)(1) call for multi-limit coverage of $10,000 for one injury per accident, $20,000 for multiple injuries per accident, and $5,000 property damage per accident or single limit coverage of $25,000?'

In answer, we are of the opinion that the minimum coverage required is the multi-limit coverage, commonly referred to as 10/20/5, and not single limit coverage of $25,000 per accident. Our determination is based on the following reasons.

First of all, the wording of Section 2118(a)(1) obviously requires that it be read together with the minimum liability coverage limits of 21 Del.C. § 2904(b). It establishes minimum coverage at '$25,000 for any 1 accident or to the limit of the Financial Responsibility Law of this State, whichever is greater'. Thus, under the Motorist Protection Act, before an owner may legally operate a registered motor vehicle, resort must be had to the minimum coverage required under 21 Del.C. § 2904(b) to determine whether the coverage required as a prerequisite to lawful operation is the $25,000 specified in the statute, or something more. If a determination of the coverage required by one statute cannot be made without reference to the other, then common sense dictates that the General Assembly intended them to be read together. If this was not intended, it would have been simple enough for the General Assembly to have said so.

It is argued by the proponents of the single limit interpretation that the intent of the statute is clear and unambiguous, and thus does not permit the application of the general rules pertaining to statutory construction. They say that the requirement of 'at least $25,000 for any 1 accident' means just that, and that consequently the responsibility of the insurer is to provide a total coverage of $25,000 for any one accident to be payable up to that amount as the injuries and damages may appear, regardless of whether there be injury to only one person, injury to several persons, property damage, or any combination thereof.

For example, if an expensive vehicle is totally destroyed with accompanying serious injury to an occupant, and the property damage is $10,000 and the personal injury is worth $15,000, then it is argued that the coverage required by Section 2118(a)(1) for that one accident must be sufficient to take care of both. Likewise, if there is personal injury to only one person which exceeds $10,000, or which exceeds $25,000 for that matter, then the insurance required must be such as to cover the full amount due to that person, up to the minimum limit of $25,000. It is contended that such coverage is greater than...