Foxworth v. Morris

633 A.2d 536, 134 N.J. 284, 1993 N.J. LEXIS 1299
CourtSupreme Court of New Jersey
DecidedDecember 13, 1993
StatusPublished
Cited by3 cases

This text of 633 A.2d 536 (Foxworth v. Morris) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Foxworth v. Morris, 633 A.2d 536, 134 N.J. 284, 1993 N.J. LEXIS 1299 (N.J. 1993).

Opinion

The opinion of the Court was delivered by

O’HERN, J.

This appeal concerns an injured person’s eligibility to receive benefits from the Unsatisfied Claim and Judgment Fund (Fund). The Fund serves as a safety net for motor-vehicle-accident victims who sustain losses or injuries caused by uninsured or unidentifiable owners or operators of motor vehicles. For an innocent passenger in a car struck by an uninsured driver the Fund will cover up to $15,000 of uninsured losses occasioned by personal injury and up to $5,000 of uninsured losses resulting from property damage. N.J.S.A. 39:6-73(c)(1) and (3). The Fund also affords personal-injury-protection (PIP) benefits to cover medical claims up to $250,000 and loss of income up to $5,200. N.J.S.A. 39:6-86.1a and -86.1b. In addition to other requirements, to be eligible to collect benefits from the Fund, the injured person must show that “[h]e was not at the time of the accident, the owner or registrant of an uninsured motor vehicle * * *.” N.J.S.A. 39:6-70(d). Posed most broadly, the question in this case is whether mere ownership of an uninsured car that is inoperable and unregistered precludes recovery from the Fund.

I

Timothy Foxworth was injured on May 4, 1987. He was a passenger in a vehicle owned and operated by Shelly Morris that [286]*286was struck by a vehicle owned and operated by Booker T. King. Both vehicles were uninsured.

On October 17,1988, Foxworth filed a complaint in the Superior Court, Law Division, against King, Morris, and the Fund. He sought damages for bodily injury and PIP benefits. King and Morris defaulted. After a proof hearing, the court entered judgment against King in the amount of $14,959, which included $4559 for medical bills, $2400 for loss of wages, and $8000 for pain and suffering. On July 10, 1990, Foxworth applied for payment from the Fund. The Fund opposed payment contending that Foxworth was ineligible because he had been the owner of an uninsured car at the time of the accident.

Foxworth did own an uninsured vehicle. In February 1987, he had bought an inoperable 1976 Saab from a used-car lot and had it towed to a place of storage. Not intending to operate the Saab until it was driveable, Foxworth had not insured it. Foxworth claimed he never drove or operated the vehicle because the vehicle had major electrical problems. The record is unclear whether Foxworth had ever registered the vehicle or obtained license plates. In November 1988, Foxworth removed the car from storage and sold it for junk.

In ruling on the motion for payment from the Fund, the court stated that “there was a motor vehicle registered in the name of [Foxworth],” that Foxworth “had [the car] towed from the place he bought it to [a place] for storage,” and that Foxworth had “[n]o insurance at the time of the accident.” The court noted that Foxworth intended to have the car repaired but never had the money to do so. Relying on language in Caldwell v. Kline, 232 N.J.Super. 406, 412, 557 A.2d 661 (App.Div.1989), that an owner who “has taken the vehicle off the road * * * with no intent of operating it” may be eligible for Fund benefits, the court granted Foxworth’s motion.

The Appellate Division reversed. The court acknowledged that the car had never been driven, had been kept in storage, and had not been repaired because Foxworth could not afford to make the [287]*287repairs. The court found that the legislative history of the Act did not

reveal that the legislature would tolerate the absence of insurance coverage for whatever period of time the car’s owner decided not to have it repaired, or during a period of time when the owner decided he would devote his resources to other things, and have a repairable and otherwise operable motor vehicle remain unrepaired.

In effect, the court held that to maintain Fund eligibility an owner would have to insure an inoperable and unregistered car. (The record contains no proof that this car was ever registered.) We granted certification, 133 N.J. 432, 627 A.2d 1138 (1993).

II

Prior to 1983, the Fund law had disqualified only one who was “operating or riding in an uninsured motor vehicle owned by him * * N.J.S.A. 39:6-70(d) (emphasis added); see Manzo v. Eddinfeld, 126 N.J.Super. 20, 21-23, 312 A.2d 659 (App.Div.1973). In 1983, the Legislature amended the statute to disqualify also the “owner or registrant of an uninsured motor vehicle.” L. 1983, c. 362, § 2; N.J.S.A. 39:6-70(d) (emphasis added). The plain language of the amendment expanded disqualification from operation only to include ownership of the uninsured vehicle. The question is whether, in every circumstance, an owner or registrant of an uninsured vehicle is precluded from Fund benefits.

At first glance, the present language of the statute would appear to create an absolute bar to recovery. We are uncertain, however, that the Legislature intended that. Consider, for example, the case of a person who has bought a used car, given the cash-purchase price to the seller, received the bill of sale, and returned home to arrange for insurance, registration, and license plates. At that point no one can drive the car until the owner has obtained plates, which the owner cannot do without proof of insurance. That person is, however, the owner of an uninsured motor vehicle. If that person were involved in an accident with an uninsured motorist, a literal reading of the Act would prohibit Fund benefits. We do not believe that the Legislature would [288]*288intend that a perfectly well-intentioned motorist, who has followed the letter of the law, should be deemed ineligible for Fund benefits merely because of the status of ownership. Our task is to have the law make sense: “it is a venerable principle that a law will not be interpreted to produce absurd results.” K Mart Corp. v. Cartier, Inc., 486 U.S. 281, 324 n. 2,108 S.Ct. 1811, 1816 n. 2, 100 L.Ed.2d 313, 345 n. 2 (1988) (Scalia, J., concurring in part and dissenting in part). We “ ‘effectuate the legislative intent [of the law] in light of the language used and the objects sought to be achieved.’ ” Merin v. Maglaki, 126 N.J. 430, 435, 599 A.2d 1256 (1992) (quoting State v. Maguire, 84 N.J. 508, 514, 423 A.2d 294 (1980) (footnote omitted)). If, then, some conceptual window is found between the status of ownership and the status of disqualifying noncompliance with the requirements of law, our task is to decide how the Legislature would define that window.

Ill

Caldwell, supra, traced the history of the Fund amendment.
[P]rior to the amendment in 1983 if an uninsured motor vehicle owned by a claimant was parked, garaged, damaged or otherwise not in use and not involved in the accident, Fund payments would be available to the owner, even though the required insurance had not been purchased.
The 1983 amendment, however, removed the focus of operation/use and broadened the disqualification to all owners of uninsured motor vehicle.

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

Related

Delacruz v. Borough of Hillsdale
838 A.2d 498 (New Jersey Superior Court App Division, 2004)
REALTY ASSET PROP. v. Oldham
811 A.2d 468 (New Jersey Superior Court App Division, 2002)
Carmichael v. Bryan
707 A.2d 1357 (New Jersey Superior Court App Division, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
633 A.2d 536, 134 N.J. 284, 1993 N.J. LEXIS 1299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foxworth-v-morris-nj-1993.