Berrey v. Travelers Indemnity Co. of America

917 F. Supp. 2d 873, 2013 WL 124131, 2013 U.S. Dist. LEXIS 3172
CourtDistrict Court, C.D. Illinois
DecidedJanuary 9, 2013
DocketNo. 11-3426
StatusPublished

This text of 917 F. Supp. 2d 873 (Berrey v. Travelers Indemnity Co. of America) is published on Counsel Stack Legal Research, covering District Court, C.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berrey v. Travelers Indemnity Co. of America, 917 F. Supp. 2d 873, 2013 WL 124131, 2013 U.S. Dist. LEXIS 3172 (C.D. Ill. 2013).

Opinion

OPINION

SUE E. MYERSCOUGH, District Judge:

On October 25, 2011, Plaintiff Deanne Berrey filed a Complaint in the Sangamon County Circuit Court. The two-count Complaint alleges state law claims for breach of insurance contract (Count I) and violation of the Illinois Insurance Code (Count II). In November 2011, Defendant, the Travelers Indemnity Company of America (Travelers), removed the case to federal court. The matter is now before the Court on the cross motions for summary judgment filed by Travelers (d/e 9) and Plaintiff (d/e 11). Because Traveler’s has fulfilled its obligations under the insurance policy at issue, Traveler’s motion for summary judgment is granted and Plaintiffs motion for summary judgment is denied.

BACKGROUND

On March 26, 2009, Plaintiff suffered injuries in an automobile accident that occurred while operating a vehicle within the scope of her employment with Curry Ice & Coal, Incorporated (Curry Ice & Coal). Sheri Campbell, the other driver, caused the accident. Plaintiff made a claim for workers’ compensation benefits and received $103,224.02 in benefits as follows: (1) $26,106.25 in temporary total disability benefit payments; (2) $51,535.27 for medical bills; and (3) $25,582.50 in permanent partial disability benefit payments. Plaintiff also made a liability claim against Campbell, the at-fault driver of the vehicle that hit Plaintiff. Campbell’s policy had a $100,000 limit. Finally, Plaintiff submitted a claim under the underinsured motorist (UIM) coverage of policy number P-810-932K4769-TIA-08 (Policy) that Travelers had issued to Curry Ice & Coal.

On July 26, 2011, a binding arbitration hearing took place pursuant to an agreement between Plaintiff and Curry Ice & Coal. Two days later the arbitration panel issued its “Decision of Arbitration” that found “an appropriate and just award to the Plaintiff for all elements of the damages presented in this matter is the amount of $310,000. This amount is inclusive of all medical expenses that were incurred and paid.” In coming to this conclusion, the arbitration panel considered all of Plaintiffs relevant medical records and a summary of her medical bills incurred because of the accident. The panel also considered Plaintiffs scars, information from the crash report, photographs of the vehicles involved in the accident, the information on Plaintiffs W-2 forms for 2007, 2008, and 2009, and a document summarizing Plaintiffs lost income.

Plaintiff has received two checks from Travelers totaling $210,000 (one for $181,346.31 and a second for $28,653.69) and $103,223.02 in workers’ compensation benefits from the workers’ compensation carrier. Additionally, the other driver Campbell’s liability insurer paid $100,000, which was paid directly to the worker’s [876]*876compensation carrier to satisfy its workers’ compensation lien.

Plaintiff claims Travelers still owes her money pursuant to the UIM coverage of the Policy. In Count I, Plaintiff seeks the $100,000 she claims Travelers still owes her pursuant to the UIM provision of the Policy.1 Count II seeks relief under the Illinois Insurance Code for Travelers’ alleged wrongful and vexatious refusal to pay the amount due and owing Plaintiff under the Policy.

This case involves the interpretation of the Policy issued by Travelers to Curry Ice & Coal. The Policy was in effect from August 1, 2008 through August 1, 2009 and covered vehicles owned by Curry Ice & Coal. The Policy provides UIM coverage up to $1 million per accident. The Policy also contains the following provisions relevant to Travelers’ UIM exposure to Plaintiff:

A. COVERAGE
1. We will pay all sums the “insured” is legally entitled to recover as compensatory damages from the owner or driver of an “underinsured motor vehicle.”

See d/e 9-1 at p. 36 (Exhibit D, p. 1)

D. LIMIT OF INSURANCE ...
2. Except in the event of a “settlement agreement”, the Limit of Insurance for this coverage shall be reduced by all sums paid or payable:
a. By or for anyone who is legally responsible, including all sums paid under this Coverage Form’s Liability Coverage.
b. Under any workers’ compensation, disability benefits or similar law. However, the Limit of Insurance for this coverage shall not be reduced by any sums paid or payable under Social Security disability benefits.
4. No one will be entitled to receive duplicate payments for the same elements of “loss” under this Coverage Form and any Liability Coverage Form.

See d/e 9-1 at p. 37 (Exhibit D, p. 2).

Also, near the top of the first page of the UIM endorsement, the Policy states:

Limit of Insurance: $ SEE CAT 0302 Each “Accident”
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

See d/e 9-1 at p. 36 (Exhibit D, p. 1). Form “CAT 030” (really CA TO 30 11 06 (d/e 9-1, p. 9; Exhibit A, p. 1) shows the Limit of Insurance for UIM coverage is $1,000,000 for each “accident.”

The UIM provision also contains an arbitration provision that provides in pertinent part:

If we and an “insured” disagree whether the “insured” is legally entitled to recover damages from the owner or driver of an “underinsured motor vehicle” or do not agree as to the amount of damages that are recoverable by that “insured”, then the matter may be arbitrated. However, disputes concerning [877]*877coverage under this endorsement may not be arbitrated.

See d/e 9-1 at p. 38-39 (Exhibit D, p. 3-4).

JURISDICTION AND VENUE

Plaintiff is a resident of Macoupin County, Illinois. Travelers is a corporation based in Connecticut. Because complete diversity exists, and the amount in controversy exceeds $75,000, this Court has subject-matter jurisdiction under 28 U.S.C. § 1332(a)(1). Venue is proper in this judicial district because a substantial part of the events or omissions giving rise to the claim occurred here. See 28 U.S.C. § 1391(a)(2).

STANDARD OF REVIEW

“Summary judgment is appropriate when the pleadings and submissions in the record indicate the absence of any genuine issues of material fact, such that the moving party is entitled to judgment as a matter of law.” Mercatus Group, LLC v. Lake Forest Hospital, 641 F.3d 834, 839 (7th Cir.2011). A genuine issue of material fact exists when “the evidence is 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, 2510, 91 L.Ed.2d 202 (1986). The movant bears the burden of establishing that there is no genuine issue of material fact. Celotex Corp. v. Catrett,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Mercatus Group, LLC v. Lake Forest Hospital
641 F.3d 834 (Seventh Circuit, 2011)
Roberts v. Northland Insurance
705 N.E.2d 762 (Illinois Supreme Court, 1998)
Hobbs v. Hartford Ins. Co. of the Midwest
823 N.E.2d 561 (Illinois Supreme Court, 2005)
Lapham-Hickey Steel Corp. v. Protection Mutual Insurance
655 N.E.2d 842 (Illinois Supreme Court, 1995)
Outboard Marine Corp. v. Liberty Mutual Insurance
607 N.E.2d 1204 (Illinois Supreme Court, 1992)
Sulser v. Country Mutual Insurance
591 N.E.2d 427 (Illinois Supreme Court, 1992)
Zimmerman v. Illinois Farmers Insurance
739 N.E.2d 990 (Appellate Court of Illinois, 2000)
American States Insurance v. Koloms
687 N.E.2d 72 (Illinois Supreme Court, 1997)
Phoenix Insurance v. Rosen
949 N.E.2d 639 (Illinois Supreme Court, 2011)
Mullaney v. St. Paul Fire & Marine Insurance
184 F. App'x 577 (Seventh Circuit, 2006)
Roberts v. Northland Insurance Co.
685 N.E.2d 371 (Appellate Court of Illinois, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
917 F. Supp. 2d 873, 2013 WL 124131, 2013 U.S. Dist. LEXIS 3172, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berrey-v-travelers-indemnity-co-of-america-ilcd-2013.