Sisco v. American Family Mut. Ins. Co., 73142

• Court: United States State Supreme Court of Missouri
• Citation: 806 S.W.2d 409
• Decision Date: 09 April 1991
• Docket Number: No. 73142,73142
• Parties: Richard SISCO and Billie Marie Sisco, Appellants, v. AMERICAN FAMILY MUTUAL INSURANCE COMPANY, Respondent.

Page 409

806 S.W.2d 409 Richard SISCO and Billie Marie Sisco, Appellants,
v.
AMERICAN FAMILY MUTUAL INSURANCE COMPANY, Respondent. No. 73142. Supreme Court of Missouri,
En Banc. April 9, 1991.

Page 410

J.W. Gabriel, St. Louis, for appellants.

James P. Lemonds, St. Louis, for respondent.

John B. Reddock, John F. Ketcherside, Liberty, amicus (Missouri Org. of Def. Lawyers).

HIGGINS, Judge.

American Family obtained a declaratory judgment that it owed no money to Richard Sisco because of an exclusion in its underinsured motorist coverage policy. The Missouri Court of Appeals, Eastern District, reversed the judgment and transferred the case to this Court because of general interest and importance. The question is whether American Family Mutual Insurance Company may reduce its underinsured liability to its insured because of "Service Connected Accidental Disability Retirement" benefits paid to the insured by the St. Louis Metropolitan Police Department. This Court determines that it may not. The judgment of the trial court is reversed, and the cause is remanded with directions.

On January 26, 1985, Richard Sisco was a police officer for the St. Louis Metropolitan Police Department. While on duty, he had an automobile collision with a vehicle driven by an underinsured motorist. At the time of the accident, the Siscos had an automobile policy issued by respondent which included underinsured motorist coverage in the amount of $100,000. On March 14, 1986, Richard was involuntarily retired from the police department and placed on Service Connected Accidental Disability Retirement, resulting in payment of benefits to him of over $75,000. On January 13, 1988, appellants obtained judgment against the underinsured motorist in the amount of $100,000. The underinsured motorist had coverage of only $25,000, and the underinsured motorist's insurance company paid appellants the limits of that policy. Respondent asked for, and the trial court made, a declaration that respondent owed no part of the remaining $75,000 coverage by reason of the provision in its policy providing any amounts payable for underinsured motorist coverage "will be reduced by any payment made or amount payable because of the bodily injury under any worker's compensation or disability benefits law or any similar law."

Appellants contend the quoted provision is ambiguous and that the retirement benefits paid to Sisco through the St. Louis police relief and pension system were not encompassed by the provision. Respondent asserts the exclusion provides a reduction from its liability to the extent of any monies paid Sisco pursuant to a disability benefits law including the payments made by the St. Louis Metropolitan Police Department.

Richard Sisco was retired involuntarily from the St. Louis police force through Service Connected Accidental Disability Retirement under sections 86.200--86.366, RSMo, entitled the "Alternate Retirement System in Cities of 700,000 or More." This statutory scheme demonstrates...