ILNews

Court rules on underinsured motorists coverage

Jennifer Nelson
January 1, 2007
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The Indiana Court of Appeals ruled today on when injured claimants in an automobile accident can seek to recover more money under a single Uninsured and Underinsured Motorist policy.

In Auto-Owners Insurance Co. v. David Eakle, et al., the court used previous cases Allstate Ins Co v. Sanders 644 N.E.2d 884, 887 (Ind. Ct. App. 1994) and Grange Ins. Co v. Graham 843 N.E.2d 597, 599 (Ind. Ct. App. 2006) to determine the trial court erred in denying Auto-Owners judgment on the pleadings and summary judgment and ruling that the Eakles receive summary judgment.

In 2003, David Eakle and his parents, Helen and Leon, were seriously injured in an automobile accident when Lavern Weddel failed to stop at a red light in Indianapolis. Weddel died as a result of the accident. The Eakles, along with David's wife, Melissa, filed a claim with Weddel's insurer, Indiana Insurance Co. and received the accident policy limit of $500,000. Helen received $245,000, Leon received $160,000; David received $90,000, and Melissa was awarded $5,000.

The Eakles' vehicle was insured through Auto-Owners, which provided uninsured and underinsured motorist (UIM) coverage of $500,000 per person and $500,000 per accident. The Eakles filed a claim with Auto-Owners for coverage payments under their UIM endorsement of the policy, which Auto-Owners denied, saying Weddel's vehicle was not underinsured.

The Eakles then brought a lawsuit against Auto-Owners for breach of contract and seeking a declaratory judgment that they were entitled to the compensation under the UIM claims with their insurance policy. The trial court ruled in favor of the Eakles.

The Court of Appeals examines the core issue of the case - whether Weddel's vehicle was underinsured. Auto-Owners wants the court to compare the per accident limit of Weddel's bodily injury liability policy, which was $500,000, to the per accident limit of the Eakles' UIM policy, which is also $500,000. The Eakles argue the court should compare the per person limit of each Eakle's UIM coverage, which is $500,000, to the amount actually available for payment to each Eakle under the agreement with Weddel's insurer, which does not total $500,000 for each injured party.

The opinion, authored by Judge Darden with Judges Sharpnack and Robb concurring, finds that Weddel's vehicle was not underinsured, using Graham and Sanders as guides because those cases also involved multiple injured claimants seeking to recover under a single UIM policy.

Darden wrote, "The designated evidence demonstrates that the amount of $500,000 paid to the Eakles by tortfeasor-Weddel's insurance was not less than, but equivalent to the UIM limits available to the Eakles for a multiple person accident in the amount of $500,000.00 under their Auto-Owners policy."

The court found that Weddel's vehicle was not underinsured and that the trial court erred in denying Auto-Owners' motion for judgment on the pleadings and its alternative motion for summary judgment. The COA reversed the trial court's decision and remanded with instruction that the trial court grant summary judgment in favor of Auto-Owners.
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  1. For many years this young man was "family" being my cousin's son. Then he decided to ignore my existence and that of my daughter who was very hurt by his actions after growing up admiring, Jason. Glad he is doing well, as for his opinion, if you care so much you wouldn't ignore the feelings of those who cared so much about you for years, Jason.

  2. Good riddance to this dangerous activist judge

  3. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  4. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  5. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

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