Collins v. St. Paul Mercury Insurance Co.

CourtAppellate Court of Illinois
DecidedMarch 25, 2008
Docket1-06-3601 Rel
StatusPublished

This text of Collins v. St. Paul Mercury Insurance Co. (Collins v. St. Paul Mercury Insurance Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Collins v. St. Paul Mercury Insurance Co., (Ill. Ct. App. 2008).

Opinion

SECOND DIVISION March 25, 2008

No. 1-06-3601

LISA L. COLLINS, as Special Representative of the ) Estate of Stanley Collins, ) ) Plaintiff and Counterdefendant-Appellant, ) Appeal from the v. ) Circuit Court of ) Cook County. ST. PAUL MERCURY INSURANCE COMPANY, ) and CUMMINS-ALLISON CORPORATION, ) ) Defendants and Counterplaintiffs- ) Appellees ) ) (St. Paul Mercury Insurance Company, ) ) Honorable Third-Party Plaintiff; ) James F. Henry, ) Judge Presiding. Michael Fluherty, ) ) Third-Party Defendant). )

JUSTICE SOUTH delivered the opinion of the court:

This appeal arises from an order of the circuit court of Cook County granting defendants’

motion for summary judgment, finding there was no ambiguity in the terms of the insurance

policy and the underinsured motorist (UIM) endorsement for decedent’s company vehicle

covered him only when he was in the assigned vehicle in Mississippi. Plaintiff, Lisa Collins,

instituted this declaratory judgment action against defendants, St. Paul Mercury Insurance

Company (St. Paul) and Cummins-Allison Corporation (Cummins), seeking a declaration that

the Mississippi UIM endorsement on decedent’s company vehicle applied in the event of his 1-06-3601

death from an accident in another company vehicle in Illinois and that, consequently, its stacking

provision entitled her to stack the policy limits for all of the insured Cummins’ vehicles.

FACTS

The decedent, Stan Collins, and his wife, plaintiff, were residents of Mississippi in 2004

and decedent was employed by Cummins as a technician. As part of his compensation, he was

furnished with a company vehicle, a 2003 Pontiac Aztec (Aztec), for which he made monthly

payments to Cummins. He kept the vehicle garaged at his home in Mississippi.

St. Paul issued general commercial liability policy No. CK01205207 to Cummins, which

included fleet auto coverage for all of the vehicles owned by Cummins, including the Aztec. The

St. Paul policy also provided UIM and uninsured motorist (UM) coverage for the decedent’s

Aztec and all of the other Cummins vehicles, including those that were in Illinois. The UIM

coverage for the vehicles in each state was provided in a separate endorsement and included

coverage that was specific to each state.

On December 11, 2004, while he was in Illinois for work-related training at a Cummins

facility, the decedent was involved in a fatal automobile accident with an underinsured vehicle.

At the time, he was a passenger in a Cummins vehicle, a 2001 Dodge Caravan, which was being

driven by a Cummins employee, Michael Fluherty, during travel related to the training session.

The Caravan was a Cummins fleet vehicle and was insured under the same St. Paul policy as the

Aztec. The Caravan, which was garaged in Illinois, was covered by an Illinois UIM endorsement

to the St. Paul policy.

The vehicle in which the decedent was a passenger was struck by a car being driven by

2 1-06-3601

Melvin Kennedy, who was also killed.. The other vehicle belonged to Laura Wells and was

insured by a State Farm Insurance Company (State Farm) auto policy which provided coverage

only for $25,000 per person and $50,000 per accident. Pursuant to the St. Paul policy, which

provided UIM coverage of $1,000,000, Wells’ vehicle was an underinsured vehicle as the policy

defined that term.

The introduction to the UIM endorsement for vehicles garaged in Mississippi, including

the decedent’s Aztec, states as follows, in pertinent part:

“UNINSURED AND UNDERINSURED MOTORISTS PROTECTION

MISSISSIPPI-STACKED

We’ve designed this agreement to cover damages for bodily

injury and property damage caused by an accident which the named

insured or anyone else covered under this agreement are legally

entitled to collect from the driver or owner of an uninsured or

underinsured vehicle.

This agreement provides coverage for covered autos

registered or mainly garaged in Mississippi.”

This endorsement further provides that the applicable UIM coverage limit is calculated by

adding together the limits of all of the policies which have been issued to Cummins. The policy

contains the following language with respect to the stacking process:

“If there is more than one covered auto, our maximum limit for any

one accident is the total, added together, of the limits that apply to

3 1-06-3601

autos the named insured owns which are covered autos.”

The Mississippi UIM endorsement defines covered autos as follows:

“The Coverage Summary, shows which autos are covered under

this agreement.

Scheduled autos. If this is shown in the Coverage Summary, the

autos listed in the schedule are the covered autos at the time the

agreement goes into effect.”

Both the decedent’s Aztec and Fluherty’s Caravan were listed in the coverage summary as

covered autos. However, the Illinois UIM endorsement does not contain a stacking provision.

St. Paul’s fleet policy used the term “protected person” to identify those persons who are

entitled to coverage under that policy. The Mississippi UIM endorsement used the following

language to provide that any person who is in a covered auto is a protected person:

“If the named insured is shown in the Introduction as *** any other

form of organization, then the following are protected persons:

• Anyone in a covered auto or temporary substitute for a

covered auto; and

• Anyone for damages he or she is entitled to recover because

of bodily injury to another protected person.”

With respect to vehicles that are covered in Illinois, the St. Paul policy provides the

following types of coverage: liability, underinsured motorists, and medical payments. It also

indicates that UM property damage applies.

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The declarations page of the St. Paul policy reflects that the limits for UIM coverage are

$1 million per accident for “any owned auto” in several states, including Mississippi. The policy

also states that each state’s separate UIM endorsement provides coverage for covered autos

which are registered or principally garaged in that state.

Plaintiff and Fluherty, contending that Wells’ vehicle was underinsured, made claims for

UIM benefits under the St. Paul policy. In addition, plaintiff filed a complaint for declaratory

judgment, seeking a declaration that the Mississippi UIM endorsement applies to her husband’s

death and that its stacking provision entitles her to stack the policy limits for all insured

Cummins’ vehicles (approximately 268 across the country). She argued that because the

Mississippi UIM endorsement did not distinguish between the Aztec, which was given to her

family in Mississippi, or any other vehicles owned by Cummins that decedent would possibly

use, the Mississippi endorsement should apply to the accident which occurred in Illinois.

Plaintiff also argued that decedent was a covered person under the Illinois UIM endorsement.

St. Paul filed a counterclaim against plaintiff and Fluherty, seeking a declaration that the

UIM claims relating to the underlying accident were governed by the Illinois UIM endorsement

because the accident vehicle was registered in Illinois. There is a maximum of $1 million in

UIM benefits available under the Illinois UIM endorsement, and there is no stacking provision.

Both plaintiff and St. Paul filed cross-motions for summary judgment. Additionally, St.

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Collins v. St. Paul Mercury Insurance Co., Counsel Stack Legal Research, https://law.counselstack.com/opinion/collins-v-st-paul-mercury-insurance-co-illappct-2008.