Hotkowski v. Aetna Life & Casualty Co.

617 A.2d 451, 224 Conn. 145, 1992 Conn. LEXIS 380
CourtSupreme Court of Connecticut
DecidedDecember 8, 1992
Docket14498
StatusPublished
Cited by50 cases

This text of 617 A.2d 451 (Hotkowski v. Aetna Life & Casualty Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hotkowski v. Aetna Life & Casualty Co., 617 A.2d 451, 224 Conn. 145, 1992 Conn. LEXIS 380 (Colo. 1992).

Opinions

Peters, C. J.

As in the companion case of McGlinchey v. Aetna Casualty & Surety Co., 224 Conn. 133, 617 A.2d 445 (1992), which we have also released today, the principal issue in this appeal is the enforceability of a provision in a contract for uninsured or underinsured motorists coverage that requires the insured to initiate collection proceedings within a two year period from the occurrence of an automobile accident. The plaintiff, Henry Hotkowski (insured), filed an action alleging that he had a right to recover underinsured motorist benefits pursuant to an insurance contract issued by the defendant, Aetna Life and Casualty Company (insurer). In response, the insurer filed a motion for summary judgment on the ground that the insured’s claim was time-barred. After the trial court granted the insurer’s motion, the insured appealed to the Appellate Court. We transferred the appeal to this court pursuant to Practice Book § 4023 and General Statutes § 51-199 (c), and now affirm.

The following facts are not disputed. On December 23, 1987, the insured, while driving his own vehicle, was injured in a two car accident caused by the negligence of another driver (tortfeasor). In the pursuit of his claim against the tortfeasor, the insured discovered, by a letter dated January 10, 1990, that the tortfeasor’s limit of liability insurance was $20,000.

On September 4, 1990, the insured instituted this action against the insurer seeking benefits for damages in excess of the tortfeasor’s liability limits1 pursuant [147]*147to the uninsured motorists provisions of his contract.2 At the time of the accident, the insurance contract provided that “[a] 11 claims or suits under Part C. [‘Uninsured Motorists Coverage’] must be brought within two years of the date of accident.”3

The insurer filed a motion for summary judgment, relying on memoranda of law and an affidavit submitted by the insurer. No counter affidavits were filed by the insured. Treating the issues before it as raising solely a question of law, the trial court granted the insurer’s motion for summary judgment. The court determined that the insured’s suit was time-barred. The court ruled that, whether the insured characterized his demand as a “claim” or a “suit,” he had filed his suit too late to comply with the two year time limitation contained in the contract. Furthermore, the court upheld the validity of the time limitation, concluding that it was authorized by General Statutes (Rev. to 1987) § 38-27.4

The insured appeals from the judgment in favor of the insurer on three grounds. He maintains that the time limitation clause in the insurance contract does [148]*148not bar his suit because: (1) a “claim” may be pursued, even after expiration of a contractual time limitation, in the absence of a showing of prejudice to the insurer; (2) the two year period does not commence to run until an insured has had a fair opportunity to discover the underinsured status of the tortfeasor; and (3) the two year period is not authorized by § 38-27, because that statute applies only to uninsured and not to underinsured motorists coverage. We are unpersuaded.

I

The insured first maintains that his demand for uninsured motorists coverage complied with the conditions of the contract provision that a claim or suit be made “within two years of the date of [the] accident.” Specifically, he argues that the term “claim” means, in effect, “notice of claim,” and that a late demand for coverage made pursuant to the “notice” provision of an insurance contract does not bar the claim absent a factual showing of prejudice to the insurer. Aetna Casualty & Surety Co. v. Murphy, 206 Conn. 409, 418, 538 A.2d 219 (1988). The insured concludes that, because the facts before the trial court did not establish such prejudice, the court should not have granted summary judgment.

Even if we were to agree that the contract term “claim” is a synonym for “notice of claim,”5 we could not sustain the argument of the insured. Although we held, in Aetna Casualty & Surety Co. v. Murphy, supra, that the failure of an insured to meet a contractual time limitation with respect to a “notice of claim” may be excused if the insurer suffered no material prejudice from the delay, we also held that prejudice to the [149]*149insurer will be presumed. Id., 419-20. We expressly imposed upon the insured the burden of establishing a lack of prejudice to the insurer. Id. In accordance with this allocation of the burden of proof, in Aetna Casualty & Surety Co. v. Murphy, supra, we affirmed the decision of the trial court granting the insurer’s motion for summary judgment because the affidavit submitted by the insured “contained no factual basis for a claim that [the insurer] had not been materially prejudiced by [the insured’s] delay.” Id., 420-21. In the present case, the insured filed no affidavit in opposition to the insurer’s motion for summary judgment. Because the insured has, therefore, failed to sustain his burden of making the requisite factual showing regarding absence of prejudice to the insurer, this contention is not a viable response to the motion for summary judgment.

II

The insured next maintains that, even if the period during which he could bring a claim was limited to two years, summary judgment was improper because the limitation period in his case must be deemed to have been tolled. The insured contends that General Statutes (Rev. to 1989) § 38-175c, now recodified as § 38a-336, as interpreted in Continental Ins. Co. v. Cebe-Habersky, 214 Conn. 209, 212-13, 571 A.2d 104 (1990), required him to exhaust his claim against the tortfeasor in advance of his pursuit of a claim against the underinsured motorists insurer. He argues, therefore, that he could not initiate his claim against the insurer until he discovered, more than two years after the accident, that the tortfeasor had only $20,000 liability coverage.

We have today examined and rejected a similar contention in McGlinchey v. Aetna Casualty & Surety Co., supra. Although that case involved a two year limitation in an arbitration clause, we conclude that its hold[150]*150ing is equally applicable to a clause imposing a two year limitation on the time for initiating “claims or suits,” as is specified in the insurance contract at issue in this case.6 The insured, therefore, cannot prevail on this argument.

Ill

The insured’s final argument is that the trial court improperly granted the motion for summary judgment because the time limitation clause in the insurance contract is void as against public policy. The trial court rejected this contention because it held that § 38-27 authorizes an uninsured or underinsured motorist insurance contract to include a time limitation of not less than two years. We came to the same conclusion in McGlinchey v. Aetna Casualty & Surety Co., supra.

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Bluebook (online)
617 A.2d 451, 224 Conn. 145, 1992 Conn. LEXIS 380, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hotkowski-v-aetna-life-casualty-co-conn-1992.