Shelter Ins. Co. v. Vasseur
| Decision Date | 29 January 2016 |
| Docket Number | No. SD 33552,SD 33552 |
| Citation | 481 S.W.3d 82 |
| Parties | Shelter Insurance Company, Plaintiff–Appellant, v. Jeanie Vasseur, Matthew Vasseur, By and thru his Guardian Ad Litem, Adam Vasseur, Charlotte Vasseur, Jackie Strydom, Andrea Postelwait, Sarita Vasseur, and Michael Vasseur, Defendants–Respondents. |
| Court | Missouri Court of Appeals |
ATTORNEY FOR APPELLANT—WILLIAM CRAWFORD, Kansas City, MO
ATTORNEY FOR RESPONDENT—H. LYNN HENRY, West Plains, MO
On May 19, 2015, this Court issued an opinion in this cause. On September 22, 2015, the Supreme Court of Missouri sustained an application for transfer to that court. On January 26, 2016, the Supreme Court entered an order retransferring the cause to this Court. The following is now adopted as the opinion of this court.
Shelter Mutual Insurance Company ("Shelter") appeals from the trial court's judgment against Shelter in a declaratory action case. Shelter raises six points on appeal. Shelter's first two claims have merit, but the remainder of the claims either are not preserved for appellate review or are moot. Thus, we reverse in part and affirm in part.
Jeanie Vasseur was married to Elmer Vasseur. Jeanie and Elmer had one minor son, Matthew, and one adult son, Adam.1 On August 8, 2010, Matthew was driving Adam's 2006 Honda ATV on Missouri State Highway AA. Elmer was riding on the ATV behind Matthew. Matthew failed to negotiate a turn, causing the ATV to run off the road and hit a sign. Matthew was injured, and Elmer died at the scene.
At the time of the accident, Jeanie and Elmer had one farm owners' insurance policy and three automobile insurance policies issued by Shelter. Elmer and Jeanie were the named insureds on each of the policies. After the accident, Jeanie, Matthew, Adam, and other members of Elmer's family ("Respondents") sought the policy limits under each of the policies.
On March 3, 2011, Shelter filed a petition for declaratory judgment against Respondents seeking a declaration that there was no coverage under any of the policies. Shelter argued there was no coverage under the farm owners' insurance policy because Elmer was an insured under the farm owners' insurance policy and because the farm owners' insurance policy contained exclusions regarding bodily injury to an insured. Shelter argued there was no coverage under the automobile insurance policies because the ATV was not a "Motor Vehicle" as that term was defined in the automobile insurance policies.
After discovery, the parties filed a joint stipulation of facts and crossmotions for summary judgment. The trial court found the exclusions in the farm owners' insurance policy were ambiguous, and ordered summary judgment in favor of Respondents.
The trial court then found that a genuine issue of material fact remained regarding whether the ATV was a "Motor Vehicle" under the terms of the three automobile insurance policies. A bench trial was held on May 6, 2014. After receiving evidence, the trial court found the ATV was a "Motor Vehicle" and entered judgment for Respondents on all counts in Shelter's petition. Shelter appeals.
In its first and second points, Shelter argues the trial court erred in finding the farm owners' insurance policy provided both coverage to Matthew for damages arising out of the injuries and death of Elmer and for medical payments arising out of the injuries and death of Elmer because such damages were excluded from coverage under two different exclusions in section II of the farm owners' insurance policy. We agree.
When the trial court grants summary judgment, the appellate court "applies a de novo standard of review." Bu rn s v. Smith, 303 S.W.3d 505, 509 (Mo. banc 2010). Additionally, "interpretation of an insurance policy is a question of law, and the trial court receives no deference where resolution of the controversy is a question of law." State Farm Mut. Auto. Ins. Co. v. Stockley, 168 S.W.3d 598, 600 (Mo.App.E.D.2005) (quoting Automobile Club Inter–Ins. Exch. v. Medrano, 83 S.W.3d 632, 637 (Mo.App.E.D.2002) ).
"In construing the terms of an insurance policy, this court ‘applies the meaning which should be attached by an ordinary person of average understanding if purchasing insurance and resolves ambiguities in favor of the insured.’ " Affirmative Ins. Co. v. Broeker, 412 S.W.3d 314, 318 (Mo.App.E.D.2013) (quoting Seeck v. Geico Gen. Ins. Co., 212 S.W.3d 129, 132 (Mo. banc 2007) ). An ambiguity exists when "the policy is reasonably open to different constructions." Id. (quoting National Union Fire Ins. Co. v. Maune, 277 S.W.3d 754, 758 (Mo.App.E.D.2009) ). "However, when the insurance policy is unambiguous, the court will enforce the policy according to its terms." Id. at 318–19. Furthermore, "[a] court is not permitted to create an ambiguity or distort the language of an unambiguous policy in order to enforce a particular construction that it deems more appropriate." Progressive Northwestern Ins. Co. v. Talbert, 407 S.W.3d 1, 9 (Mo.App.S.D.2013) (quoting Lynch v. Shelter Mut. Ins. Co., 325 S.W.3d 531, 535 (Mo.App.S.D.2010) ); see also Burns, 303 S.W.3d at 511 ().
As part of the farm owners' insurance policy, Jeanie and Elmer purchased $100,000 worth of personal liability insurance and $1,000 worth of medical payments to others insurance. These coverages were in section II of the policy. The coverage provision for personal liability ("Coverage E") provided that Shelter would "pay all sums arising out of any one loss which an insured becomes legally obligated to pay as damages because of bodily injury or property damage and caused by an occurrence covered by this policy." (Emphasis omitted). As applicable to this case, the coverage provision for medical payments to others ("Coverage F") provided that Shelter would pay medical expenses arising from bodily injury sustained somewhere other than the premises if that injury was "caused by the activities of an insured, or a farm employee, or a residence employee in the course of employment by an insured [.]" (Emphasis omitted).
The exclusions for section II were organized in three paragraphs, each with several numbered sub-paragraphs.2 The first paragraph ("Exclusion Group A") began with the phrase "Under Personal Liability and Medical Payments To Others, we do not cover" and listed several types of risks typically covered by other types of insurance, as well as an intended acts exclusion. (Emphasis omitted). The second paragraph ("Exclusion Group B") began with the phrase "Under Personal Liability we do not cover" and listed several types of property damage, bodily injury for which there was workers' compensation payable, and in sub-paragraph 9 specifically excluded, "[b]odily injury to: (a) you; (b) your relatives residing in your household; and (c) any other person under the age of 21 residing in your household who is in your care or the care of a resident relative." (Emphasis omitted). The third and final paragraph ("Exclusion Group C") began with the phrase "Under Medical Payments To Others, we do not cover" and in sub-paragraph 2, listed several types of risk typically covered by other insurance and excluded "bodily injury to any insured under parts (a), (b) and (c) of the definition of insured." (Emphasis omitted).
At the summary judgment stage, Shelter argued no payment was due under the coverage for personal liability because of sub-paragraph 9 contained within Exclusion Group B. Shelter argued no payment was due under the coverage for medical payments to others because of sub-paragraph 2 contained within Exclusion Group C. The trial court disagreed, and entered summary judgment in favor of Respondents.
The trial court's entry of summary judgment with respect to the farm owners' insurance policy was incorrect because it ignored the plain language of the policy. The farm owners' insurance policy states that Exclusion Group A applies to both the personal liability coverage and the medical payments to others coverage, Exclusion Group B applies to the personal liability coverage, and Exclusion Group C applies to the medical payments to others coverage. The plain meaning of that list results in three possible applications:
This interpretation gives effect to the plain meaning of the language used. Under that meaning, there is no bodily injury coverage or medical payment coverage for Elmer because Elmer was a named insured.
Respondents attempt to avoid this conclusion by looking at the positioning of the language in the document. They suggest that the positioning of the various clauses renders them ambiguous. They state, "the only sensible interpretation of this language is that [Exclusion] Group A applies to policies with both coverages,...
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