Dutton vs. American Family Mut. Ins. Co.

Barbara Hiles purchased two American Family Mutual Insurance policies on two vehicles she owned, a Nissan and a Ford. While driving her Nissan, Hiles was involved in a motor vehicle accident that injured Adam Dutton. Dutton sued Hiles and made a settlement demand of $50,000, which was the combined policy limits of the Nissan policy added to what Dutton claimed were the minimum policy limits required under the Motor Vehicle Financial Responsibility Law (MVFRL) for the Ford policy. Dutton, Hiles, and American Family entered into a settlement under which Dutton received $25,000 under the Nissan policy and was assigned Hiles’ right to sue American Family for issues arising from the Ford policy. Dutton then filed a declaratory judgment action against American Family seeking a determination whether the Ford policy provided $25,000 additional coverage for his injuries. The trial court entered judgment for American Family. The Supreme Court affirmed, holding that the Ford policy’s plain language did not require American Family to provide coverage for the accident, and the MVFRL did not require American Family to pay the statutory minimum of $25,000 of liability coverage on the Ford policy because the Nissan was owned by the insured but not designated in the Ford policy. View "Dutton vs. American Family Mut. Ins. Co." on Justia Law