Travis v. State Farm Mut. Auto. Ins. Co.

• Decision Date: 21 January 2022
• Docket Number: Case No. 4:21-CV-00558-SPM
• Citation: 581 F.Supp.3d 1174
• Parties: Jacqueline TRAVIS, Special Administrator of the Estate of Duan Travis, Plaintiff, v. STATE FARM MUTUAL AUTOMOBILE INSURANCE CO., Defendant
• Court: U.S. District Court — Eastern District of Missouri

581 F.Supp.3d 1174

Jacqueline TRAVIS, Special Administrator of the Estate of Duan Travis, Plaintiff,

v.STATE FARM MUTUAL AUTOMOBILE INSURANCE CO., Defendant

Case No. 4:21-CV-00558-SPM

United States District Court, E.D. Missouri, Eastern Division.

Signed January 21, 2022

Clayton Lawrence Dowd, Laura Greene Lumaghi, Dowd and Dowd PC, St. Louis, MO, for Plaintiff.

Daniel E. Wilke, Stephen A. Wilke, James A. Wilke, Wilke and Wilke PC, St. Louis, MO, for Defendant.

MEMORANDUM AND ORDER

SHIRLEY PADMORE MENSAH, UNITED STATES MAGISTRATE JUDGE

This matter is before the Court on Defendant State Farm Mutual Automobile Insurance Company's Motion for Summary Judgment (Doc. 34) and Plaintiff's Motion for Partial Summary Judgment (Doc. 36). Briefing on the motions is complete. The parties have consented to the jurisdiction of the undersigned United States Magistrate Judge pursuant to 28 U.S.C. § 636(c). (Doc. 11). For the reasons stated below, Defendant's motion will be granted, and Plaintiff's motion will be denied.

I. LEGAL STANDARD

Summary judgment shall be granted "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). Accord Kohlbeck v. Wyndham Vacation Resorts, Inc. , 7 F.4th 729, 737 (8th Cir. 2021). Material facts are those "that might affect the outcome of the suit under the governing law," and a genuine material fact is one such that "a reasonable jury could return a verdict for the nonmoving party." Anderson v. Liberty Lobby, Inc. , 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). "In reaching its decision, a court should not weigh the evidence, make credibility determinations, or attempt to determine the truth of the matter." Leonetti's Frozen Foods, Inc. v. Rew Mktg., Inc. , 887 F.3d 438, 442 (8th Cir. 2018) (internal quotation marks omitted).

II. FACTUAL AND PROCEDURAL BACKGROUND

Plaintiff Jacqueline Travis brings this action as the Special Administrator of the Estate of Duan Travis, Plaintiff's late husband. The action arises out of a dispute over whether State Farm owes Plaintiff underinsured motorist coverage related to a vehicle accident in which her husband was killed. Plaintiff alleges two counts against Defendant State Farm based on Defendant's refusal to pay Plaintiff the underinsured motorist policy limits of $100,000: one count of breach of contract, and one count of vexatious refusal to pay.

The material facts in this case are undisputed. On February 11, 2021, Duan Travis was driving his brother Stanley Travis’ vehicle in Illinois, with Stanley's consent, when the vehicle was rear-ended by William Free. Duan Travis was killed as a result of the accident. At the time of the accident, both William Free's vehicle and Stanley Travis's vehicle had policies of insurance issued by State Farm. State Farm and Plaintiff settled Plaintiff's claim under William Free's policy for $100,000, the maximum liability coverage limit under that policy. However, Plaintiff did not release her claim for underinsured motorist coverage under the policy State Farm had issued with regard to Stanley Travis’ vehicle, insurance policy no. G95 9574-A17-13A (the "Travis Policy"). When Plaintiff requested $100,000 in underinsured motorist coverage under the Travis Policy, Defendant refused coverage on the ground that Mr. Free's liability coverage of $100,000 was equal to Stanley Travis's underinsured motorist coverage of $100,000. Defendant does not appear to dispute that Plaintiff has damages in excess of $200,000.

The relevant portions of the Travis Policy's underinsured motor vehicle coverage provisions are set forth below.

UNDERINSURED MOTOR VEHICLE COVERAGE

This policy provides Underinsured Motor Vehicle Coverage for bodily injury in "W" is shown under "SYMBOLS" on the Declarations Page.

Additional Definitions

Insured means:

1. you ;

2. resident relatives ;

3. any other person while occupying :

a. your car ;

b. a newly acquired car ; or

c. a temporary substitute car .

Such vehicle must be used within the scope of your consent. Such other person occupying a vehicle used to carry persons for a charge is not an insured ; and

4. any person entitled to recover compensatory damages as a result of bodily injury to an insured as defined in 1., 2., or 3. above.

Underinsured Motor Vehicle means a land motor vehicle:

1. the ownership, maintenance, and use of which is either:

a. insured or bonded for bodily injury liability at the time of the accident; or

b. self-insured under any motor vehicle financial responsibility law, any motor carrier law, or any similar law; and

2. for which the total limits of insurance, bonds, and self-insurance for bodily injury liability from all sources:

a. are less than the Underinsured Motor Vehicle Coverage limits of this policy; or

b. have been reduced by payments to persons other than you and resident relatives to less than the Underinsured Motor Vehicle Coverage limits of this policy.

...

Insuring Agreement

We will pay compensatory damages for bodily injury an insured is legally entitled to recover from the owner or driver of an underinsured motor vehicle . The bodily injury must be:

1. sustained by an insured ; and

2. caused by an accident that involves the operation, maintenance, or use of an underinsured motor vehicle as a motor vehicle.

We will pay only if the limits of liability or portion thereof under all bodily injury insurance bonds, policies, and self-insurance plans applicable to the underinsured motor vehicle and its operators have been partially or fully exhausted by payment of judgments or settlements, or have been offered to the insured in writing.

...

Limits

1. The Underinsured Motor Vehicle Coverage limits are shown on the Declarations Page under "Underinsured Motor Vehicle Coverage – Bodily Injury Limits – Each Person, Each Accident".

a. The most we will pay for all damages resulting from bodily injury to any one insured injured in any one accident, including all damages sustained by other insureds as a result of that bodily injury is the lesser of:

(1) the limit shown under "Each Person" less those amounts actually recovered under the applicable bodily injury insurance policies, bonds, or other security maintained on the underinsured motor vehicle ; or

(2) the total amount of all damages resulting from that bodily injury less those amounts actually recovered under the applicable bodily injury insurance policies, bonds, or other security maintained on the underinsured motor vehicle .

Travis Policy, Doc. 36-2, at pp. 22-24.

The Declarations Page contains the symbol "W," and in the "Coverage & Limits" column, it indicates that the policy includes Underinsured Motor Vehicle Coverage with Bodily Injury Limits of $100,000 for each person and $300,000 for each accident. Travis Policy Declarations, Doc. 36-1, at p. 1.

The Travis Policy also contains the following relevant definitions:

Resident Relative means a person , other than you , who resides primarily with the first person shown as a named insured on the Declarations Page and who is:

1. related to that named insured or his or her spouse by blood, marriage, or adoption, including an unmarried and unemancipated child of either who is away at school and otherwise maintains his or her primary residence with that named insured; or

2. a ward or a foster child of that named insured, his or her spouse, or a person described in 1. above.

...

You or Your means the named insured or named insureds shown on the Declarations Page. If a named insured shown on the Declarations Page is a person , then "you " or "your " includes the spouse of the first person shown as a named insured if the spouse resides primarily with that named insured.

Travis Policy, Doc. 36-2, at pp. 4-5. The named insured on the Declarations Page is Stanley E. Travis. It is undisputed that neither Duan Travis nor Plaintiff Jacqueline Travis was a named insured under the Travis Policy, and that neither Duan Travis nor Plaintiff Jacqueline Travis was a resident relative under the Travis Policy.

III. DISCUSSION

A. Choice of Law

As a preliminary matter, the Court must determine what state's law applies to this dispute. The Travis Policy contains a choice of law provision that states, in relevant part, "Without regard to choice of law rules, the law of the state of: a. Illinois will control in the event of any disagreement as to the interpretation and application of any provision in this policy ...." Travis Policy, Doc. 36-2, at p. 40. Defendant, citing this provision, argues that Illinois law applies. Plaintiff's position on the choice of law issue is not clear, but she cites both Illinois and Missouri cases in her briefing.

In a diversity case, "[i]n determining which state's law applies, [the court] look[s] to the choice of law principles of the forum state." Miller v. Honkamp Krueger Fin. Servs., Inc., 9 F.4th 1011, 1016 (8th Cir. 2021) (quoting Am. Fire & Cas. Co. v. Hegel , 847 F.3d 956, 959 (8th Cir. 2017) ); see also Klaxon Co. v. Stentor Elec. Mfg. Co. , 313 U.S. 487, 496, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941). Under Missouri law, "Generally, parties may choose the state whose law will govern the interpretation of their contractual rights and duties," and "[a] valid choice of law provision in a contract binds the parties."

State ex rel. McKeage v. Cordonnier , 357 S.W.3d 597, 601 (Mo. 2012). However, "where the application of the chosen law would be contrary to Missouri public policy, Missouri courts may instead choose to apply the law of their own state." Maritz Holdings Inc. v. Certain Underwriters at Lloyd's London , No. 4:18-CV-00825 SEP, 2020 WL 7023952, at *3 (E.D. Mo. Nov. 30, 2020) (citing Sturgeon v. Allied Prof'ls Ins. Co. , 344 S.W.3d 205, 209-11 (Mo. Ct. App. 2011) ). See also Simon v. Liberty Mut. Fire Ins. Co. , No. 4:17-CV-0152-DGK, 2017 WL 6276256, at *2 (W.D. Mo. Dec. 8, 2017) ("A Missouri court will apply the law of another jurisdiction so long as ‘this law is not contrary to a fundamental...