Michaud v. State Farm

CourtSuperior Court of Maine
DecidedJune 29, 2017
DocketANDcv-16-062
StatusUnpublished

This text of Michaud v. State Farm (Michaud v. State Farm) is published on Counsel Stack Legal Research, covering Superior Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michaud v. State Farm, (Me. Super. Ct. 2017).

Opinion

(

STATE OF MAINE SUPERIOR COURT ANDROSCOGGIN, ss. CIVIL ACTION DOCKET NO. CV-16-062 ANDREW MICHAUD & ) DIANA BERNIER ) ) Plaintiffs, ) ORDER ON DEFENDANT'S V. ) SUMMARY JUDGMENT MOTION ) STATE FARM, an Illinois company ) JUN 29 '17 PMt1:21 doing business in the state of Main e ) ANDRO SUPERIOR corn~ ) Defendant. )

Before the court is Defendant State Farms's motion for summary judgment on Plaintiffs

Andrew Michaud's and Diana Bernier' s breach of contract claim. For the following

reasons, Defendant's motion is granted.

I. Background

On July 3, 2014, Plaintiff Bernier insured a motorcycle with State Farm. (Supp.'g

S.M.F.

S.M.F.

accident while operating the motorcycle. (Supp.'g S.M.F.

pay for the damages. (Pl.'s Compl. 11.) On May 12, 2016, Plaintiffs filed a complaint

alleging State Farm had breached its contract by refusing to pay for damages to the

motorcycle. On May 8, 2017, State Farm filed this motion for summary judgment.

II. Standard of Review

Summary judgment is appropriate, if based on the parties' statement of material

facts and the cited record, no genuine issue of material fact exists and the moving party

is entitled to judgment as a matter of law. Beal v. Allstate Ins . Co., 2010 ME 20,

A. 2d 733; Dyer v. Dep't of Transport., 2008 ME 106,

material if it could potentially affect the outcome of the case." Reliance Nat'l Indem. v.

Knowles Indus. Servs., 2005 ME 29,

1 of 5 exists where the fact finder must choose between competing versions of the truth. Id.

(citing Univ. of Me. Found. v. Fleet Bank of Me., 2003 ME 20,

will consider "only the portions of the record referred to, and the material facts set forth

in the [M.R. Civ. P. 56(h)] statements." F.R. Carroll, Inc. v. TD Bank, N.A., 2010 ME 115,

8, 8 A.3d 646 (internal quotation marks omitted). When deciding a motion for summary

judgment, the court reviews the materials in the light most favorable to the non-moving

party, and will give that party the benefit of all reasonable inferences. Lewis v. GEICO

Gen. Ins. Co., 600 F. Supp. 2d 220,221 (D. Me. 2009); Dyer, 2008 ME 106,

821. The party opposing a summary judgment must point to specific facts showing that

a factual dispute does exist to avoid a summary judgment. Watt v. Unifirst Corp., 2009

ME 47,

III. Discussion

In support of the motion, State Farm argues that the motorcycle policy had been

canceled for nonpayment prior to the accident. (Def.'s Mot. Summ. J. 8-9.) State Farm

argues that a cancellation notice sent to Plaintiff described her right to request a hearing

before the Superintendent of Insurance, which Plaintiff Bernier did not request within

the time allowed. (Def.'s Reply in Support of Mot. Summ. J. 5; Supp.'g S.M.F.

Furthermore, State Farm argues that Plaintiff Bernier changed the policy prior to the

accident from "full" road coverage to comprehensive coverage which did not cover

motor vehicle collisions. (Def.'s Mot. Summ. J. 9; Supp.'g S.M.F.

argues that she did not receive a cancellation notice, and that she paid for a year of

coverage when she purchased the insurance, and she denies that she changed the

policy. (Pl.'s Opp'n to Def.'s Mot. Summ. J. 1, 2; Opp. S.M.F.

2 of 5 (

a. Cancellation of coverage

The cancellation of a policy for nonpayment of premium is permissible, but the

insurer must satisfy statutory notice requirements. 24-A M.R.S. §§ 2914(1), 2915.

Specifically, cancellation is not effective unless notice is received by the named insured

at least 10 days prior to the effective date of cancellation, where a postal service

certificate of mailing to the named insured at the insured's last known address is

conclusive proof of receipt. 24-A M.R.S. § 2915. The Legislature's use of the word

"unless" is indicative of its intent to require that insurers comply strictly with the

statute's terms. Me. Bonding & Cas. Co. v. Knowlton, 598 A.2d 749,750 (Me. 1991). If there

is any deficiency in the last known name or address, the conclusive proof presumption

is not available. Schmitt v. Horace Mann Ins. Co., No. CV-07-514, 2008 Me. Super. LEXIS

190, at *5-6 (Oct. 22, 2008). An insurer that fails to comply with the statutory method of

cancellation, is generally precluded from asserting that the policy has been cancelled.

Blanchet v. Assurance Co. of Am., 2001 ME 40, 'IT 7, 766 A.2d 71.

State Farm provided postal service receipts to show that a cancellation notice was

mailed on October 9, 2014 to "10 WILDWOOD DR APT 5" in Lewiston, Maine. (Supp.'g

S.M.F. 'IT 21.) Plaintiff Bernier admits to having received insurance cards from State

Farm at "the 10 Wildwood address." (Opp. S.M.F. 'IT 16.) Despite not being sure of the

exact apartment number, (Opp. S.M.F. 'IT 26), Plaintiff Bernier does not claim to have

moved or to have notified State Farm that she moved from the Wildwood address

between the date she received the insurance cards and the date on which the

cancellation notice was mailed. Based on the evidence that State Farm was compliant

with the requirements for cancellation, Plaintiff Bernier has failed to generate any

genuine issue of material fact as to the effectiveness of the cancellation notice.

3 of 5 b. Exhaustion of administrative remedies

State Farm argues that Plaintiff Bernier waived her right to litigate in this court

the cancellation of her policy, because she could have raised, but did not raise, the issue

before the Bureau of Insurance. (Def.'s Reply in Support of Mot. Summ. J. 5.)

"The doctrine of exhaustion of administrative remedies requires a party to

proceed in the administrative/ municipal arena until all possible administrative

remedies are exhausted before initiating action in the courts." Levesque v. Eliot, 448 A.2d

876,878 (Me. 1982). The Law Court has recognized exceptions where: (1) because of

direct involvement of the reviewing body in the initial decision, administrative appeal

would be futile, (2) only questions of law are involved, or (3) the reviewing body has no

power to grant the requested relief. Hodsdon v. Town ofHermon, 2000 ME 181,

A.2d 221. The notice describing the right to request an administrative hearing must

meet any applicable statutory requirements in order to trigger the running of an appeal

period. Freeport v. Greenlaw, 602 A.2d 1156, 1161 (Me. 1992).

None of the recognized exceptions to the doctrine of exhaustion of remedies

applies here. See Cushing v. Smith, 457 A.2d 816, 821 (Me. 1983).

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Related

Dyer v. Department of Transportation
2008 ME 106 (Supreme Judicial Court of Maine, 2008)
Hodsdon v. Town of Hermon
2000 ME 181 (Supreme Judicial Court of Maine, 2000)
University of Maine Foundation v. Fleet Bank of Maine
2003 ME 20 (Supreme Judicial Court of Maine, 2003)
Cushing v. Smith
457 A.2d 816 (Supreme Judicial Court of Maine, 1983)
Levesque v. Inhabitants of Town of Eliot
448 A.2d 876 (Supreme Judicial Court of Maine, 1982)
Beal v. Allstate Insurance Co.
2010 ME 20 (Supreme Judicial Court of Maine, 2010)
Town of Freeport v. Greenlaw
602 A.2d 1156 (Supreme Judicial Court of Maine, 1992)
Watt v. UniFirst Corp.
2009 ME 47 (Supreme Judicial Court of Maine, 2009)
Reliance National Indemnity v. Knowles Industrial Services, Corp.
2005 ME 29 (Supreme Judicial Court of Maine, 2005)
Lewis v. Geico General Insurance
600 F. Supp. 2d 220 (D. Maine, 2009)
F.R. Carroll, Inc. v. TD Bank, N.A.
2010 ME 115 (Supreme Judicial Court of Maine, 2010)
Maine Bonding & Casualty Co. v. Knowlton
598 A.2d 749 (Supreme Judicial Court of Maine, 1991)
Blanchet v. Assurance Co. of America
2001 ME 40 (Supreme Judicial Court of Maine, 2001)

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Michaud v. State Farm, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michaud-v-state-farm-mesuperct-2017.