STEVENSON v. HARFORD MUTUAL INSURANCE COMPANY

CourtDistrict Court, W.D. Pennsylvania
DecidedDecember 17, 2024
Docket2:23-cv-01656
StatusUnknown

This text of STEVENSON v. HARFORD MUTUAL INSURANCE COMPANY (STEVENSON v. HARFORD MUTUAL INSURANCE COMPANY) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
STEVENSON v. HARFORD MUTUAL INSURANCE COMPANY, (W.D. Pa. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA

BEVERLY STEVENSON, BEVERLY ) STEVENSON D/B/A DENNIS FELITSKY ) CONSTRUCTION, AND BEVERLY ) STEVENSON D/B/A SHINY DIMES ) Civil Action No. 23-1656 CLEAN UP, LLC, ) Judge Nora Barry Fischer )

Plaintiffs, ) ) v. ) ) THE HARFORD MUTUAL INSURANCE ) COMPANY, ) ) Defendant. )

MEMORANDUM OPINION

I. INTRODUCTION Currently pending before the Court are Plaintiff’s Motion for Summary Judgment (Docket No. 40) and Defendant’s Motion for Summary Judgment (Docket No. 43) in this breach of contract action. Plaintiff’s Complaint seeks additional Under Insured Motorist (“UIM”) coverage allegedly owed through the Harford automobile insurance policy in effect at the time of her accident-related injury (the “Policy”).1 Both parties seek a determination in their favor as to Plaintiff’s entitlement to “stacked” coverage under the Policy where Defendant failed to obtain any new waivers of such

1 Plaintiff’s Complaint was comprised of two counts: Count I, alleging breach of contract and Count II, alleging a bad faith claim. (Docket No. 1-1). Count II was dismissed by the parties’ Stipulation, which reserved Plaintiff’s right to seek reinstatement of such claim if the Court concluded that the Harford policy provided stacked UIM coverage. (Docket No. 26). See also Docket No. 44 at 2. coverage subsequent to Plaintiff Beverly Stevenson’s initial execution of a waiver form (“Waiver”) in 2012.2 Upon careful consideration of the parties’ submissions and the evidence of record, and for the reasons set forth below, Defendant’s motion is granted and Plaintiff’s motion is denied.

In brief, the Court observes that Plaintiff applied for and was issued a commercial automobile insurance policy, completed and received documents indicating the commercial nature of the policy, requested and obtained multiple changes in both the number of vehicles insured and the vehicles themselves,3 and received multiple policy revisions and annual renewal related documents from Defendant from the time of the policy’s initial issuance in 2012 through the time of her March 2018 accident.4 It concludes, in accordance with Pennsylvania law, that Defendant had no obligation under the Motor Vehicle Financial Responsibility Law (“MVFRL”), 75 Pa. C.S. § 1738, to obtain subsequent stacking waivers on the commercial automobile policy at issue. Having made the determination that Defendant, having tendered its UIM policy limits, is entitled to summary judgment,5 the Court need not address the parties’ differing positions as to either (a)

2 “Stacked” UIM coverage refers to the ability to increase the insured’s UIM coverage by aggregating the amounts appliable to each vehicle insured under a given policy. See e.g., Barnard v. Travelers Home & Marine Ins. Co., 216 A.3d 1045, 1047 n.2 (Pa. 2019) (“‘stacking’ allows the insured to aggregate the UIM or UM coverage limits on all of her insured vehicles to increase the amount of coverage available in the event of an accident”).

For ease of reference, Plaintiffs (Stevenson and her business entities) will be referred to collectively as “Plaintiff” and Beverly Stevenson will sometimes also be referred to as “Stevenson”. Cf. Docket No. 1-1 at ¶ 1 (Stevenson “was the owner and representative of those companies who contracted with Defendant”).

3 All vehicles insured at the time of the incident were titled in the name of Stevenson’s limited liability corporation, Shiny Dimes Clean Up (“Shiny Dimes”), which was formed in 2017. (Docket No. 42 at 5).

4 Plaintiff Stevenson makes no allegation and provides no evidence that she was billed at individual/personal policy coverage rates or was billed for stacked coverage. She also makes no allegation and provides no evidence that she or her insurance broker/agent, Mitchell Insurance (“Mitchell”), communicated an objection or intention that Plaintiff’s policy either be a non-commercial policy or provide stacked coverage. Cf. Docket No. 13 at 2 (Plaintiff’s Brief in Support of Remand) (“In 2012, when Plaintiff Beverly Stevenson applied for commercial automobile insurance . . .”).

5 See Docket No. 1-1 at ¶ 82 (“Subsequently, Defendant Harford Insurance tendered the limits of the UIM coverage under its policy to Stevenson without prejudice” to continuation of her claim for additional coverage); Docket No. 13 at 2 (“Defendant Harford has paid $50,000 in UIM benefits . . . .”). other asserted grounds for summary judgment in a party’s favor or (b) the amount of stacked coverage to which Plaintiff would otherwise be entitled. II. PROCEDURAL BACKGROUND

Plaintiff’s Complaint was filed in the Butler County Court of Common Pleas and removed to this Court by Defendant on September 18, 2023. (Docket Nos. 1 and 1-1). Its core allegation is that “from 2012-2018, [Defendant] failed to obtain a proper and valid stacking waiver and . . . by default, must provide uninsured motorist coverage to the limit of the vehicles, as stacked, under the . . . policy in place at the time of the underlying collision.” (Docket No. 1-1 at ¶ 78). Plaintiff asserts coverage due in the amount of $200,000 (4 vehicles x $50,000 UIM). (Id. at ¶¶ 79, 83). Defendant’s Answer was filed September 29, 2023 and raised three affirmative defenses, i.e., (1) Plaintiff elected lower-than-available limits of UIM coverage, (2) stacking was not available under Harford’s commercial policy coverage and/or (3) it was effectively waived. (Docket No. 7).

Plaintiff’s October 16, 2023 Motion to Remand (mistakenly characterizing her action as one for declaratory judgment) was denied on December 1, 2023. (Docket Nos. 12 and 25). The parties thereafter filed their pending cross Motions for Summary Judgment, Briefs in Support and in Opposition, Replies and Sur-Replies. See Docket Nos. 40-41, 43-46, 49-51. They also filed a Joint Factual Stipulation, followed by Defendant’s Concise Statement of Material Facts and Plaintiff’s Counterstatement thereto. See Docket Nos. 39, 42, 48. Evidentiary submissions were provided as exhibits to many of the filings and the motions are fully briefed and ripe for disposition. III. FACTUAL BACKGROUND In February 2012, Stevenson completed a “Commercial Insurance Application”,

identifying the applicant as her sole proprietorship “Beverly Stevenson dba Dennis Felitsky Construction,” with a Federal Employer’s Identification Number (“FEIN”) of 27-2892739.6 The application requested a $500,000 limit of coverage for bodily injury and property damage liability and non-stacked coverage for uninsured and underinsured motorists in the amount of $25,000 per person and $50,000 each accident. (Docket Nos. 39 at ¶¶ 1-6; 39-1; 39-2; 7 at ¶¶ 10-11).7 On

March 21, 2012, Stevenson executed additional documents, including a Harford “Pennsylvania Commercial Auto Option Selection Form” and “Rejection of Stacked Underinsured Coverage Limits”. (Docket No. 7-3). Harford accepted the application and forms and issued a commercial insurance policy numbered 6044140, effective March 25, 2012 to March 25, 2013. (Docket Nos. 39 at ¶ 7; 39-3; 7 at ¶ 15). In October 2012, Stevenson increased the limit of coverage for bodily injury and property damage liability to $1,000,000 and executed a form electing a $50,000 coverage limitation for uninsured and underinsured motorists. (Docket Nos. 39 at ¶¶ 8-9; 39-4; 7 at ¶¶ 16-17).8 Plaintiff’s auto liability coverage was written on CA 00 01 (10/13), the “Business Auto Coverage” Form, and UIM coverage was provided on form CA 21 93 (10/13), “Pennsylvania Underinsured Motorists

Coverage – Nonstacked.” (Docket No. 7 at ¶ 65) (citing exhibits). Over the next six years, vehicles were added to and deleted from the policy (which sometimes covered as few as three and as many as six vehicles), annual renewals were issued

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Bluebook (online)
STEVENSON v. HARFORD MUTUAL INSURANCE COMPANY, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stevenson-v-harford-mutual-insurance-company-pawd-2024.