Gloe v. Iowa Mutual Insurance Co.

2005 SD 29, 694 N.W.2d 238, 2005 S.D. LEXIS 31
CourtSouth Dakota Supreme Court
DecidedMarch 2, 2005
DocketNone
StatusPublished
Cited by28 cases

This text of 2005 SD 29 (Gloe v. Iowa Mutual Insurance Co.) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gloe v. Iowa Mutual Insurance Co., 2005 SD 29, 694 N.W.2d 238, 2005 S.D. LEXIS 31 (S.D. 2005).

Opinions

ZINTER, Justice.

[¶ 1.] Scott Gloe’s parents were struck and killed by an automobile. Gloe’s [240]*240parents did not reside in his household, they were not insured under his auto policy, and neither Gloe nor his covered automobile was involved in the accident. Nevertheless, Gloe asserted a wrongful death claim under the underinsured motorist (UIM) provision of his auto policy with Iowa Mutual. The trial court entered a declaratory judgment determining that there was no UIM coverage for Gloe’s claim, and he appeals. We affirm because (1) Iowa Mutual’s policy only provided UIM coverage for insureds who suffer bodily injury or death, (2) Gloe suffered no bodily injury or death, (3) his parents were not insureds under his policy, and (4) South Dakota’s statutes do not mandate UIM coverage for pecuniary losses insureds may suffer as a result of the death of third parties who have no connection with the insured’s policy.

Facts and Procedural History

[¶ 2.] On September 1, 2001, pedestrians Larry and Verna Mae Gloe were struck and killed in an auto accident. Pursuant to SDCL 21-5-1,1 Scott Gloe, their son, was appointed as the personal representative to pursue wrongful death claims on behalf of the decedents’ statutory beneficiaries.2

[¶ 3.] Two insurers provided liability coverage for this accident. American Family Insurance Company insured the automobile, with liability limits of $25,000 per person. Farmer’s Insurance Group insured the driver, with liability limits of $100,000 per person. Each company paid its limits: $125,000 was paid for the wrongful death claims arising from Larry Gloe’s death, and $125,000 was paid for the wrongful death claims arising from the death of Verna Mae Gloe.3 These sums were paid in return for a release of the tortfeasor and the liability carriers. Scott Gloe, his brother Michael Gloe,4 and their sister Karen Nelson5 received the wrongful death proceeds.

[¶ 4.] After settling with the liability carriers, Scott Gloe brought this declarato[241]*241ry action seeking to establish UIM coverage under his policy with Iowa Mutual. Gloe’s claim was asserted in his individual capacity, and he sought to recover additional uncompensated wrongful death damages. Under South Dakota law, those damages are limited to Gloe’s pecuniary loss caused by the death of his parents.

[¶ 5.] Gloe’s policy with Iowa Mutual provided UIM benefits, with limits of $250,000 per person and $500,000 per occurrence. Gloe conceded that if Iowa Mutual’s policy provided UIM coverage, Iowa Mutual was entitled to set-off the amount that he received from the two liability insurers. However, Iowa Mutual denied that its policy provided any UIM coverage. Iowa Mutual’s denial was based upon a policy endorsement that only provided UIM coverage for “bodily injury or death” sustained by an “insured.” Because Gloe sustained no bodily injury or death in this accident, and because Gloe’s parents were not insureds under his policy, Iowa Mutual contended that its UIM coverage was unavailable.

[¶ 6.] Gloe acknowledged the policy language, but argued that the provision requiring “bodily injury or death” by an “insured” was incompatible with South Dakota’s law requiring UIM coverage. The trial court disagreed. Gloe now appeals, raising the following issue:

1. Whether South Dakota statutes preclude an insurer from restricting UIM coverage to bodily injury or death sustained by an insured.

By notice of review, Iowa Mutual raises the following issues:

2. Whether Gloe is a real party in interest with an individual claim for damages after he settled the wrongful death claims on behalf of the wrongful death beneficiaries.
3.Whether the personal representative’s release of the tortfeasor, precludes Gloe’s individual claim.

Analysis and Decision

[¶ 7.] “We review declaratory judgments as we would any other judgment or order.” Nelson v. Farmers Mutual Insurance Co. of Nebraska, 2004 SD 86, ¶ 5, 684 N.W.2d 74, 76 (citing SDCL 21-24-13; Parks v. Cooper, 2004 SD 27, ¶ 20, 676 N.W.2d 823, 828-29). In this case, our review involves a question of law regarding the interpretation of statutes and their application to insurance contracts. That review is de novo. See Id. (citing Roden v. General Casualty, 2003 SD 130, ¶ 6, 671 N.W.2d 622, 625); Jones v. AIU Ins. Co., 51 P.3d 1044, 1045 (Colo.Ct.App.2001) (stating that whether a statute mandates coverage is a matter of statutory interpretation subject to de novo review).

South Dakota’s Statutes Do Not Mandate UIM Coverage for Wrongful Death Damages Arising Out Of the Death of a Third Party Who Has No Relationship With the Insurance Policy.

[¶ 8.] “In South Dakota, automobile insurance providers must provide underin-sured motorist coverage in their policies.” Nelson, 2004 SD 86, ¶ 8, 684 N.W.2d at 77 (citing SDCL 58-11-9.4). In Nelson, we noted that “courts in other jurisdictions are split on the propriety of allowing an insured, pursuant to statutorily required underinsured motorist policy provision[s], to recover damages arising from bodily injury or death of a third person.” Id. ¶ 7. However, we did not “address the wisdom or public policy of allowing such suits” [242]*242under our statutes because the insurer in that case conceded coverage. Id.

[¶ 9.] The policy language at issue here provides coverage for damages an insured is “legally entitled to recover”6 from the owner or operator of an underin-sured motor vehicle because of “bodily injury or death” sustained by “an insured.” The policy provides:

We will pay compensatory damages which an ‘insured’ is legally entitled to recover from the owner or operator of an ‘underinsured motor vehicle’ because of ‘bodily injury:’
1. Sustained by an ‘insured,’ and
2. Caused by an accident.

The policy defines ‘bodily injury’ as bodily harm, sickness or disease, including death, that results. It defines insureds as:

1. You or any ‘family member.’
2. Any other person ‘occupying’ ‘your covered auto.’
3. Any person for damages that person is entitled to recover because of ‘bodily injury’ to which this coverage applies sustained by a person described in 1. or 2. above.
‘Family member’ means a person related to you by blood, marriage or adoption who is a resident of your household. This includes a ward or foster child.

[¶ 10.] Because Gloe’s parents were not residents of Gloe’s household and were not occupants of a covered auto, they were not insureds under this policy language. Furthermore, the insured, Scott Gloe, suffered no bodily injury or death in the accident. Therefore, no UIM coverage was available under the policy.

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Cite This Page — Counsel Stack

Bluebook (online)
2005 SD 29, 694 N.W.2d 238, 2005 S.D. LEXIS 31, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gloe-v-iowa-mutual-insurance-co-sd-2005.