Farrior v. State Farm Mutual Automobile Insurance

595 S.E.2d 790, 164 N.C. App. 384, 2004 N.C. App. LEXIS 825
CourtCourt of Appeals of North Carolina
DecidedMay 18, 2004
DocketNo. COA03-730
StatusPublished
Cited by2 cases

This text of 595 S.E.2d 790 (Farrior v. State Farm Mutual Automobile Insurance) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farrior v. State Farm Mutual Automobile Insurance, 595 S.E.2d 790, 164 N.C. App. 384, 2004 N.C. App. LEXIS 825 (N.C. Ct. App. 2004).

Opinion

BRYANT, Judge.

Plaintiffs appeal the denial of their motion for summary judgment and the award of summary judgment for the defendant filed 23 April 2003 regarding the issue of whether defendant was obligated to provide underinsured motorist (UIM) coverage to plaintiffs.

On 1 June 2000, plaintiffs Anitra Farrior, Vantoice Farrior, and Yvette Farrior were involved in an automobile accident with Keith Wayne Chadwick (Chadwick). Chadwick was allegedly operating his vehicle while under the influence of alcohol when he collided with plaintiffs’ vehicle.

At the time of the accident, Anitra Farrior was approximately 23 weeks pregnant with twins. The impact of the collision caused her to go into labor. Although medical providers were able to temporarily stop labor, she prematurely gave birth to the twins on 27 June 2000. One of the twins subsequently died on 24 November 2000 as a result of complications stemming from her premature birth.

At the time of the accident, Chadwick had automobile insurance coverage for bodily injury in the amount of $25,000 per person and $50,000 per accident. Plaintiffs’ vehicle was insured by defendant, State Farm Mutual Insurance Company, with bodily injury coverage of $100,000 per person and $300,000 per accident.

Plaintiffs submitted a claim to defendant for UIM coverage; however, defendant denied the claim based on execution of a selection/rejection form signed on 16 September 1996 by named insured, plaintiff Regina Farrior. Named insured Thomas Farrior never signed the form.

On 15 March 2002, plaintiffs filed a complaint for declaratory judgment. Both plaintiffs and defendant filed motions for summary judgment on 27 February 2003 and 7 March 2003 respectively, seeking [386]*386declaration as to whether UIM coverage existed based on execution of the selection/rejection form by Regina Farrior.

These matters were heard on 31 March 2003 in Wayne County Superior Court with the Honorable G.K. Butterfield presiding. By order filed 23 April 2003, the trial court denied plaintiffs’ motion but granted defendant’s motion for summary judgment. Plaintiffs filed notice of appeal on 2 May 2003.

On appeal, the issue is whether the trial court erred in its interpretation of N.C. Gen. Stat. § 20-279.21(b)(4) and subsequent grant of defendant’s motion for summary judgment based on the conclusion that UIM coverage did not exist as evidenced by execution of a selection/rejection form signed by only one named insured.

A grant of summary judgment is proper when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that any party is entitled to a judgment as a matter of law.” N.C.G.S. § 1A-1, Rule 56(c) (2003). The moving party bears the burden of establishing the lack of genuine issues of fact. Koontz v. City of Winston-Salem, 280 N.C. 513, 518, 186 S.E.2d 897, 901 (1972). If the moving party meets its burden of proof, the burden then shifts to the non-moving party to present particular facts showing genuine issues of material fact. Lowe v. Bradford, 305 N.C. 366, 369-70, 289 S.E.2d 363, 366 (1982). On appeal from a grant of summary judgment, “we review the record in the light most favorable to the non-moving party.” Bradley v. Hidden Valley Transp., Inc., 148 N.C. App. 163, 165, 557 S.E.2d 610, 612 (2001), aff’d, 355 N.C. 485, 562 S.E.2d 422 (2002).

Under North Carolina law, an automobile insurance policy is required to provide UIM coverage unless the insured has rejected that coverage. N.C.G.S. § 20-279.21(b)(4) (2003). Absent proof of a valid rejection, a policy is deemed to include such coverage. State Farm Mut. Auto. Ins. Co. v. Fortin, 350 N.C. 264, 269, 513 S.E.2d 782, 784 (1999). An insurer bears the burden of establishing the validity of a rejection of UIM motorist coverage. Hendrickson v. Lee, 119 N.C. App. 444, 450, 459 S.E.2d 275, 279 (1995).

N.C. Gen. Stat. § 20-279.21(b)(4) provides, in pertinent part, that an automobile insurance policy

[s]hall . . . provide underinsured motorist [UIM] coverage, to be used only with a policy that is written at limits that exceed those [387]*387prescribed by subdivision (2) of this section and that afford uninsured motorist coverage as provided by subdivision (3) of this subsection....
The coverage required under this subdivision shall not be applicable where anv insured named in the policy rejects the coverage. . . . The selection or rejection of underinsured motorist coverage by a named insured or the failure to select or reject is valid and binding on all insureds and vehicles under the policy.

N.C.G.S. § 20-279.21(b)(4) (emphasis added). See also N.C.G.S. § 20-279.21(b)(3) (2003) (“The coverage required under this subdivision [Uninsured or UM coverage] is not applicable where anv insured named in the policy rejects the coverage. . . . The selection or rejection of uninsured motorist coverage or the failure to select or reject by a named insured is valid and binding on all insureds and vehicles under the policy.”) (emphasis added). Plaintiffs argue that based on the language of N.C. Gen. Stat. § 20-279(b)(4), a rejection of UIM coverage is proper and binding only when all named insureds reject the form. Plaintiffs’ argument, however, misconstrues the plain language of the statute.

As a rule of construction, it is fundamental that the intent of the legislature controls in determining the meaning of a statute. Legislative intent may be determined from the language of the statute, the purpose of the statute, “ ‘and the consequences which would follow [from] its construction one way or the other.’ ” Nonetheless, if a statute is facially clear and unambiguous, leaving no room for interpretation, the courts will enforce the statute as written.

Haight v. Travelers/Aetna Property Casualty Corp., 132 N.C. App. 673, 675, 514 S.E.2d 102, 104 (1999) (citations omitted).

The plain language of the statute states “[t]he coverage required under this subdivision shall not be applicable where anv insured named in the policy rejects the coverage.” N.C.G.S. § 20-279.21(b)(4) (emphasis added). Further, “[t]he selection or rejection of underin-sured motorist coverage by a named insured or the failure to select or reject is valid and binding on all insureds and vehicles under the policy.” Id. (emphasis added). ‘A’ is defined as “one” or “each.” Webster’s New World Dictionary and Thesaurus 1 (2d ed. 2002). ‘Any’ is defined as “one, no matter which, of more than two.” Id. at 26. [388]*388‘All’ is defined as “the whole quantity of,” “everyone,” or “entirely.” Id. at 16.

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Cite This Page — Counsel Stack

Bluebook (online)
595 S.E.2d 790, 164 N.C. App. 384, 2004 N.C. App. LEXIS 825, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farrior-v-state-farm-mutual-automobile-insurance-ncctapp-2004.