David And Marissa Turk, V United Service Automobile Assoc.

Court of Appeals of Washington·Decided December 11, 2018·No. 50067-1·Unpublished

Opinion

Filed

Washington State

Court of Appeals

Division Two

December 11, 2018

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II

DAVID TURK and MARISSA TURK, No. 50067-1-II individually and as the representative of all persons similarly situated,

Respondents,

v.

UNITED SERVICE AUTOMOBILE UNPUBLISHED OPINION ASSOCIATION; USAA CASUALITY INSURANCE COMPANY; USAA GENERAL INDEMNITY COMPANY; and GARRISON PROPERTY AND CASUALITY INSURANCE COMPANY,

Appellants.

MELNICK, J. — We granted a motion for discretionary review to United Services Automobile Association, USAA Casualty Insurance Company, USAA General Indemnity Company, and Garrison Property and Casualty Insurance Company (collectively USAA) of three trial court orders. These orders certified a class of plaintiffs, named David and Marissa Turk as class representatives, denied USAA’s motion to strike a declaration of the Turks’ expert witness, and granted partial summary judgment to the Turks on the issue of a release of liability affirmative defense.

Because a genuine issue of material fact exists as to the parties’ intent in signing a release of liability, we reverse the partial summary judgment order. This release of liability gives USAA

a unique defense to Marissa’s1 claim, preventing her from being a typical class member and adequate class representative. Additionally, David is not a class member at all. Because neither class representative is typical of the class, we reverse the class certification order and remand for further proceedings.

FACTS

I. ACCIDENT On November 17, 2013, Miguel Perez, an unlicensed, uninsured driver, rear-ended the car Marissa drove, causing her to rear-end the vehicle in front of her. Marissa and her father, David, took Marissa’s car to be repaired after the accident. The car took thirty days to repair and they picked it up on December 27. Marissa did not rent a replacement car for the period of repair because she could not afford one. II. INSURANCE COVERAGE At the time of the accident, Marissa had automobile insurance through USAA, including uninsured/underinsured motorists (UIM) coverage. Her UIM coverage provided for property damage (UMPD coverage) and bodily injury (UMBI coverage) in the event an uninsured driver was at fault. Her UIM policy included coverage for loss of use (LOU) of her vehicle during the period of its repair.

At the time of the accident, USAA had an internal rule to not pay UIM coverage until completion of an investigation into the specific case to confirm that the at-fault driver was uninsured. Many other types of insurance, including comprehensive, collision, and rental reimbursement coverage, would apply immediately after the accident, but USAA would not open UIM coverage until it had completed its investigation.

1 To avoid confusion, we refer to the Turks by their first names. We intend no disrespect.

David assisted Marissa in communicating with USAA. David first contacted USAA the day of the accident. He discussed the damage to the vehicle and asked about getting a rental car. The USAA representative told David he would need to speak with an adjuster for details. The following day, David spoke with USAA insurance adjuster Paul Swain. David repeatedly asked about a rental car, but Swain told him that Marissa did not have rental insurance on her policy.

A. UIM INVESTIGATION The police responded to the accident and learned that Perez did not have a license or insurance and that he did not own the vehicle he had driven. David relayed this information to USAA in his communication with USAA agents both on the day of the accident and the following day.

Swain explained to David his investigation into the Turks’ claim. He said an investigation would be required because the mere fact a rear-end accident occurred did not suggest who was at fault. Swain listed the applicable types of coverage for the accident but did not include UIM, because he did not have any information that the accident potentially involved an uninsured motorist.2 USAA received a copy of the police report nine days after the accident. It included insurance information for Marissa and the driver of the car in front of her, but none for Perez. It also stated that Perez did not have a license. On December 4, USAA sent letters requesting insurance information to both Perez and the owner of the car he drove. USAA received a response from Perez on December 30 stating that he did not have insurance.

2 Although David said he reported to USAA that Perez did not have insurance, Swain stated in his deposition that he did not recall David ever asking him about UIM coverage and that “[a]t this point in time, I don’t have any information to indicate to me that I’m going to have a potential for an uninsured motorist property damage claim.” Clerk’s Papers (CP) at 151. Because we granted discretionary review, such factual questions are not yet fully resolved.

By January 6, 2014, Swain had determined that UIM coverage applied both to Marissa’s bodily injury and property damage. He then transferred the claim to another adjuster who handled UIM bodily injury claims. That adjuster completed USAA’s investigation and determined that UIM coverage applied because Perez did not have insurance.3 B. RELEASE OF LIABILITY On December 11, 2013, the Turks retained attorney Jeanette Coleman to represent Marissa in her dealings with USAA. The scope of Coleman’s representation was disputed by the parties and this dispute continues on appeal. The Turks and Coleman all stated in their depositions that Coleman’s representation was limited to Marissa’s UMBI claims.

The next day, Coleman sent a letter to USAA stating that her firm represented Marissa.

She requested that further communications go through her office and requested “information regarding coverage for UIM, wage loss, car rental, and other benefits available to our client.” Clerk’s Papers (CP) at 674.

Starting the following January and every month thereafter throughout the year 2014, USAA sent Coleman a letter stating that the claim was unresolved. Most of these letters said it was unresolved because “the uninsured motorist bodily injury claim for Marissa Turk [was] still pending.” CP at 472-83.

The Turks also retained Darrell Harber, a public adjuster, to represent Marissa’s financial interest in the case. In November of 2014, Harber sent a letter to USAA stating that he had been retained as a public adjuster representing Marissa’s financial interest and requesting that all

3 The parties dispute whether the adjuster contacted the Turks’ attorney and left a voicemail offering LOU coverage after she completed her investigation. This presents another unresolved factual issue resulting from our granting discretionary review.

communication and correspondence be directed only to him. He stated that Marissa would be making a diminished value claim.

In September 2014, the Turks filed a class action complaint against USAA for breach of contract for USAA’s failure to pay LOU damages. The complaint named David and Marissa as class representatives.

On February 18, 2015, Coleman sent USAA a letter demanding $50,000 to settle the bodily injury claims. Her letter did not discuss property damage claims. She negotiated with USAA and agreed to settle the bodily injury claims for $25,000. In March 2015, USAA sent Coleman a proposed release of liability, labeled at the top “Uninsured Motorist Coverage Release (Bodily Injury or Death with Subrogation Provisions).” CP at 304. The first paragraph of the release stated:

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David And Marissa Turk, V United Service Automobile Assoc., (Wash. Ct. App. 2018).

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