David M. Fredrich v. Farmers Group Property & Casualty Ins. Co.

CourtCourt of Appeals of Wisconsin
DecidedMarch 10, 2026
Docket2024AP000992
StatusPublished

This text of David M. Fredrich v. Farmers Group Property & Casualty Ins. Co. (David M. Fredrich v. Farmers Group Property & Casualty Ins. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
David M. Fredrich v. Farmers Group Property & Casualty Ins. Co., (Wis. Ct. App. 2026).

Opinion

COURT OF APPEALS DECISION NOTICE DATED AND FILED This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. March 10, 2026 A party may file with the Supreme Court a Samuel A. Christensen petition to review an adverse decision by the Clerk of Court of Appeals Court of Appeals. See WIS. STAT. § 808.10 and RULE 809.62.

Appeal No. 2024AP992 Cir. Ct. No. 2022CV4410

STATE OF WISCONSIN IN COURT OF APPEALS DISTRICT I

DAVID M. FREDRICH AN INCOMPETENT, BY HIS GUARDIAN AD LITEM, ROBERT L. JAKULSKI,

PLAINTIFF-APPELLANT,

V.

FARMERS GROUP PROPERTY & CASUALTY INS. CO.,

DEFENDANT-RESPONDENT,

WISCONSIN DEPARTMENT OF HEALTH SERVICES AND NETWORK HEALTH PLAN,

DEFENDANTS.

APPEAL from an order of the circuit court for Milwaukee County: WILLIAM W. BRASH, III, Reserve Judge. Reversed and cause remanded with directions.

Before White, C.J., Colón, P.J., and Geenen, J. No. 2024AP992

¶1 GEENEN, J. David M. Fredrich, by his guardian ad litem Robert L. Jakulski (“Fredrich”), appeals from a circuit court order granting summary judgment to Farmers Group Property & Casualty Insurance Co. (“Farmers”). The circuit court concluded that Fredrich was excluded from receiving underinsured motorist (“UIM”) benefits under the Farmers insurance policy issued to Fredrich’s mother and brother because Fredrich owned an uninsured vehicle. It granted summary judgment to Farmers and denied Fredrich’s motion for declaratory judgment. For the following reasons, we reverse the circuit court’s order granting summary judgment to Farmers and remand the cause with directions that the court grant Fredrich’s motion for declaratory judgment because the exclusion relied upon by Farmers is an unlawful “drive other car” exclusion under WIS. STAT. § 632.32(5)(j) (2021-22).1

BACKGROUND

¶2 The facts relevant to this appeal are undisputed. Fredrich was injured when he was hit by an underinsured driver while riding his bicycle. At the time of the accident, Fredrich lived with his mother and brother, and he owned an uninsured 2005 Toyota Corolla. Fredrich’s mother and brother were issued a policy of automobile insurance by Farmers (the “Policy”) that was in effect at the time Fredrich was injured, and the Policy contained an Underinsured Motorists Coverage Endorsement (the “UIM Endorsement”).

1 All references to the Wisconsin Statutes are to the 2021-22 version.

2 No. 2024AP992

¶3 The UIM Endorsement stated that Farmers will pay compensatory damages sustained by an “insured” caused by an underinsured vehicle.2 The UIM Endorsement defined “insured” as “you or any relative.” The main body of the Policy defined “relative” as “a person, other than you, who is a resident of your household, and is related to you by blood, marriage, civil union, registered domestic partnership, or adoption.” The Policy also contained a Wisconsin State Provisions Endorsement. This endorsement added the following language to the definition of “relative” contained in the main body of the Policy: “Relative excludes any person who, or whose spouse, owns or insures an auto, motorcycle, or motor home, other than a covered auto.”

¶4 Fredrich sued Farmers claiming that he was entitled to UIM benefits under the Policy because he was a “relative” of the named insureds. Farmers moved for summary judgment, and Fredrich moved for declaratory judgment. Fredrich argued that the Policy’s language with respect to who qualified as a “relative” was contradictory and ambiguous, and as a consequence, that ambiguity must be resolved in favor of coverage. Fredrich also argued that the language added to the definition of “relative” by the Wisconsin State Provisions Endorsement constituted a “drive other car” exclusion,3 and because the exclusion did not conform to WIS. STAT. § 632.32(5)(j), it could not be enforced.

¶5 Farmers argued that the plain terms of the Policy unambiguously excluded any person who owned an uncovered vehicle from the definition of

2 When quoting the Policy, we retain the Policy’s bolding of certain words and phrases because the bolding indicates to the insured that the bolded words and phrases are specially defined by the Policy. 3 A drive other car exclusion typically prevents a policyholder from insuring all the cars in one household by taking out just one policy on one vehicle, and paying only one premium. See, e.g., Agnew v. American Fam. Mut. Ins. Co., 150 Wis. 2d 341, 350, 441 N.W.2d 222 (1989).

3 No. 2024AP992

“relative,” and because Fredrich owned the uninsured Toyota Corolla, he fell outside the Policy’s definition of “relative.” Farmers also argued that the exclusionary language added to the definition of “relative” by the Wisconsin State Provisions Endorsement did not qualify as a “drive other car” exclusion because Fredrich was seeking to invoke personal and portable UIM coverage under a family member’s insurance policy. Whether Fredrich is entitled to UIM benefits depends upon whether he qualifies as an “insured,” and because this potential coverage is tied to Fredrich and not a vehicle, WIS. STAT. § 632.32(5)(j) does not apply.

¶6 The circuit court granted Farmers’ motion for summary judgment. It did not consider the Policy to be ambiguous as to the applicable definition of “relative,” and moreover, it construed the definition as a term limiting initial grants of coverage rather than a definition that excludes coverage after an initial grant of coverage under the Policy’s insuring agreement. The circuit court further concluded that, if it were to construe the definition of “relative” as an exclusion, the exclusion would not be prohibited by WIS. STAT. § 632.32(5)(j). The circuit court reasoned that § 632.32(5)(j) describes a permissible exclusion and that it would be unreasonable to interpret the provision “as prohibiting an otherwise lawful exclusion.”

¶7 Fredrich appeals.

DISCUSSION

I. Standard of review.

¶8 Fredrich appeals from the circuit court’s order granting summary judgment to Farmers. We review summary judgments de novo, applying the same methodology employed by the circuit court. American Fam. Mut. Ins. Co. v.

4 No. 2024AP992

American Girl, Inc., 2004 WI 2, ¶22, 268 Wis. 2d 16, 673 N.W.2d 65. Summary judgment is appropriate where, based on the pleadings, depositions, interrogatories, and affidavits on file, there is no genuine dispute as to any material fact, and a party is entitled to judgment as a matter of law. WIS. STAT. § 802.08(2); American Girl, 268 Wis. 2d 16, ¶22.

¶9 Fredrich argues that the definition of “relative” that applies to UIM coverage under the Policy is ambiguous and that ambiguity should have been construed in favor of coverage. Fredrich also argues that the amended definition of “relative” in the Wisconsin State Provisions Endorsement is an unlawful “drive other car” exclusion because it does not conform to WIS. STAT. § 632.32(5)(j). Interpreting and applying § 632.32(5)(j) and the Policy to undisputed facts are questions of law subject to independent appellate review. Vieau v. American Fam. Mut. Ins. Co. & Acuity, 2006 WI 31, ¶11, 289 Wis. 2d 552, 712 N.W.2d 661.

II. The definition of “relative” unambiguously excludes any person who owns an uncovered vehicle.

¶10 Fredrich argues that he is a “relative” as that term is defined by the main body of the Policy. Therefore, the circuit court should have concluded that he was an “insured” under the UIM Endorsement and that there was coverage for his UIM claim.

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David M. Fredrich v. Farmers Group Property & Casualty Ins. Co., Counsel Stack Legal Research, https://law.counselstack.com/opinion/david-m-fredrich-v-farmers-group-property-casualty-ins-co-wisctapp-2026.