Rule 23 order filed NO. 5-09-0389
July 14, 2010;
Motion to publish granted IN THE
July 29, 2010.
APPELLATE COURT OF ILLINOIS
FIFTH DISTRICT
________________________________________________________________________
LESLIE HANSON, as the Administrator of the ) Appeal from the
Estate of Brian R. Waters, Deceased, ) Circuit Court of
) Madison County.
Plaintiff-Appellant, )
)
v. ) No. 08-MR-658
)
LUMLEY TRUCKING, LLC, and )
GENERAL CASUALTY COMPANY OF )
ILLINOIS, ) Honorable
) Clarence W. Harrison II,
Defendants-Appellees. ) Judge, presiding.
________________________________________________________________________
JUSTICE STEWART delivered the opinion of the court:
Leslie Hanson, as the administrator of the estate of Brian R. W aters, deceased (the
estate), appeals from the entry of a judgment on the pleadings in favor of the defendant
insurance company, General Casualty Company of Illinois (General Casualty). The trial
court determined that the insurance policy issued to the defendant, Lumley Trucking, LLC
(Lumley), unambiguously barred the stacking or aggregation of underinsured-motorist (UIM)
coverage because the declarations page of the insurance policy listed the UIM coverage only
once. On appeal, Hanson argues that the trial court erred in ruling that the policy prohibits
the stacking of the UIM coverage. We affirm.
BACKGROUND
In December 2007, Brian W aters, while employed by Lumley, was involved in a
motor vehicle accident with Dale Phillips. Waters died as a result of injuries sustained in the
accident. Phillips's vehicle was insured by Progressive Insurance Company (Progressive)
with liability limits of $50,000 per person and $100,000 per accident. After the accident,
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Progressive paid the estate its policy limit of $50,000 to settle the estate's claim against
Phillips.
On November 19, 2008, the estate filed a complaint for declaratory relief, alleging
that the insurance policy that General Casualty had issued to Lumley, which covered the
vehicle Waters was driving at the time of the accident, allowed the estate to recover up to $1
million. The estate argued that the policy provided a $40,000 limit of liability for its UIM
coverage for each of the 25 vehicles covered by the policy but did not prohibit the stacking
or aggregation of that coverage. Hence, the estate argued that the policy provided UIM
coverage in the amount of $40,000 times 25 vehicles for a total of $1 million. The
defendants filed an answer and a counterclaim, seeking an adjudication that the policy did
not allow its UIM coverage to be stacked. Additionally, the defendants alleged that no UIM
coverage applied because the estate had already been paid $50,000, which was $10,000 more
than the limit of UIM coverage under the General Casualty policy for the vehicle involved
in the accident.
On March 6, 2009, General Casualty filed a motion for a judgment on the pleadings
in its favor. The estate filed a response to that motion and requested a judgment on the
pleadings in its favor.
On June 23, 2009, the trial court entered an order finding that the case was "readily
subject to" a judgment on the pleadings since neither party had identified any disputed fact.
The court found that the "determinative issue" was whether the UIM coverage for the 25
vehicles in the General Casualty policy could stack in order to provide the estate with $1
million in UIM coverage. The court ruled as follows:
"The General Casualty policy contains a single line on its declaration page
setting forth a shorthand identification of '46' (which cross-references a set of 25
vehicles). While this declaration may be 'tantamount' to many things (as plaintiff
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argues), it is facially a single line with a single identification of a single amount of
UIM coverage. Simply because plaintiff can suggest creative possibilities for its
meaning does not render this policy ambiguous." (Emphasis in original.)
The trial court ruled that the declarations page was not ambiguous and created no conflict
with other provisions of the policy. The court found that the UIM endorsement specifically
incorporated the unambiguous declarations sheet and specifically prohibited stacking.
Accordingly, the court granted General Casualty's motion for a judgment on the pleadings
and denied the estate's motion for a judgment on the pleadings. This appeal followed.
ANALYSIS
The parties do not raise any issues of fact but argue only about how to interpret the
insurance policy. The only issue is whether the policy, properly construed, allows the
stacking of the UIM coverage, a question of law for which our review is de novo. Hobbs v.
Hartford Insurance Co. of the Midwest, 214 Ill. 2d 11, 17 (2005). The general rules that
govern the interpretation of other types of contracts also govern the interpretation of
insurance contracts. Hobbs, 214 Ill. 2d at 17. When we interpret an insurance policy, our
primary goal is to ascertain and give effect to the parties' intention as expressed in the
language of the policy. Hobbs, 214 Ill. 2d at 17. The terms of the policy are to be applied
as written unless the policy language is ambiguous or contravenes public policy. Hobbs, 214
Ill. 2d at 17.
"Whether an ambiguity exists turns on whether the policy language is subject to more
than one reasonable interpretation. Although 'creative possibilities' may be suggested,
only reasonable interpretations will be considered. Bruder v. Country Mutual
Insurance Co., 156 Ill. 2d 179, 193 (1993). Thus, we will not strain to find an
ambiguity where none exists." Hobbs, 214 Ill. 2d at 17.
Policy terms that limit an insurer's liability are to be liberally construed in favor of the
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insured, but this rule of construction comes into play only if the policy language is
ambiguous. Hobbs, 214 Ill. 2d at 17.
The estate acknowledges that most cases in which the court has found that an
insurance policy allows stacking have done so on the basis that the language of the policy
was ambiguous because the declaration sheet listed more than one vehicle with separate
coverages and separate premiums. E.g., Johnson v. Davis, 377 Ill. App. 3d 602, 608-09
(2007) (where the declaration sheet listed the limits of liability separately for each vehicle
covered under the policy, there was a conflict with other provisions in the policy, which
created an ambiguity that was resolved in favor of the insured, allowing the greater coverage
provided by stacking). Although the interpretation of an insurance policy must be conducted
on a case-by-case basis, the manner in which the insurance company lists the coverage on
its declaration sheet provides important information that is specific to the policyholder. See
Johnson, 377 Ill. App. 3d at 609. In Johnson, this court found that stacking was allowed
under the policy because the limits of the UIM coverage were listed four separate times,
"once for each vehicle covered," and four separate premiums for the UIM coverage were also
listed on the declarations sheet. Johnson, 377 Ill. App. 3d at 609.
The pertinent provisions of the General Casualty policy at issue in this case are as
follows: Under "ITEM TWO–SCHEDULE OF COVERAGES AND COVERED AUTOS,"
there is a columnar list of the coverages, covered autos, limits, and premiums. In the row
associated with "UNDERINSURED MOTORISTS," the number "46" appears in the column
assigned to covered autos. Under the column heading "LIMIT–THE MOST WE W ILL PAY
FOR ANY ONE ACCIDENT OR LOSS" is the figure "$40,000." The estate refers us to the
"TRUCKERS COVERAGE FORM ," in which the number "46" applies to "Specifically
Described 'Autos,' " which are further described as "[o]nly those 'autos' described in Item
Three of the Declarations for which a premium charge is shown." "ITEM THREE" is a
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schedule of the 25 covered autos, in which vehicle number "022," the one that the decedent
was driving at the time of the accident, is listed. In the "ITEM THREE" schedule, the
columns referencing vehicle 022 indicate the amounts associated with the various kinds of
premiums, coverages, and deductibles applicable to that vehicle: $2,251 for liability, $9 for
"UM-UIM" (uninsured-underinsured) coverage, $248 for comprehensive coverage, $1,207
for collision coverage, and $1,000 each for the deductibles for the comprehensive and
collision coverage.
The estate argues that because General Casualty chose to reference the covered
vehicles in item two of the declaration sheet by the designation 46, which is a shorthand
reference to 25 separately listed vehicles, that designation creates an ambiguity in the policy.
The estate concludes that by using the number 46 to reference all the 25 covered vehicles,
it should be allowed to add or stack the $40,000 UIM coverage for vehicle 022 to the
$40,000 UIM coverage for each of the remaining 24 vehicles covered under the policy. This
argument is confusing to follow because it is neither a reasonable interpretation of the policy
language nor supported by any case law.
"The touchstone when determining whether an ambiguity exists regarding an
insurance policy is whether the relevant portion is subject to more than one reasonable
interpretation, not whether creative possibilities can be suggested." Pekin Insurance Co. v.
Estate of Goben, 303 Ill. App. 3d 639, 646 (1999). The trial court correctly determined that
the policy's use of the number "46" as a shorthand identification of the 25 covered vehicles
was not an invitation to multiply or stack the UIM coverage for all the vehicles even though
only one of them was involved in the accident at issue. Rather, the court determined, and
we agree, that the only reasonable interpretation of the policy was that the UIM coverage was
listed in "a single line with a single identification of a single amount of UIM coverage."
We agree with the trial court that the ambiguity the estate urges us to find does not
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exist. That is particularly obvious in light of the policy's inclusion of an antistacking clause
which is clear and unambiguous. In the section of the policy entitled "Limit of Insurance,"
the policy provides as follows: "Regardless of the number of covered 'autos,' 'insureds,'
premiums paid, claims made[,] or vehicles involved in the 'accident,' the most we will pay
for all damages resulting from any one 'accident' is the Limit of insurance for Underinsured
Motorist Coverage shown in this endorsement." Since the UIM coverage is listed as $40,000
only one time, there is no reasonable way to interpret the policy as allowing the estate to
stack the coverage for all the covered vehicles for the unfortunate injuries and death that
resulted from this accident.
Our ruling in this regard is firmly supported by the case law. In Bruder v. Country
Mutual Insurance Co., 156 Ill. 2d 179, 192 (1993), the Illinois Supreme Court posited that
it "would not be difficult to find an ambiguity" where an insurance policy listed the
uninsured- or underinsured-motorist coverage amounts and premiums separately for each
vehicle covered under the policy. Where that occurs, it is "reasonable to assume that the
parties intended" that, in return for the premiums paid, an equal amount of uninsured- or
underinsured-motorist coverage may be stacked for any one accident, regardless of language
indicating otherwise in the policy. Bruder, 156 Ill. 2d at 192-93. Since the uninsured-
motorist coverage was listed only one time in the policy at issue in Bruder, even though
separate premiums were listed for each vehicle covered, the court found that "[t]he only
reasonable interpretation" was that the policy provided only the amount listed the one time
for each person injured regardless of the number of vehicles insured or premiums paid.
Bruder, 156 Ill. 2d at 193-94. Based upon these facts, the court ruled that, as there was no
ambiguity in the limitation-of-liability provision, it was to be applied as written, and no
aggregation or stacking of coverage would be allowed. Bruder, 156 Ill. 2d at 194.
The case law since Bruder has followed the same line of reasoning when considering
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whether to allow the stacking of uninsured- or underinsured-motorist coverage. In Estate of
Goben, the court relied upon the Bruder decision and found that, because the UIM coverage
was set forth two times, once for each covered vehicle, there were two possible
interpretations of the policy, which required the policy to be strictly construed against the
insurer, so that stacking was allowed. Estate of Goben, 303 Ill. App. 3d at 648-49; see also
Profitt v. OneBeacon Insurance, 363 Ill. App. 3d 959, 963 (2006) (the existence of two
declarations pages attached to the insurance policy did not raise an ambiguity entitling the
insured to stack the limits of liability provided on those two pages because the second
declaration page was included only to show that one vehicle had been added to the policy
to replace another, and the liability limits were identical and not listed separately for each
vehicle). Even in cases such as this, where the UIM coverage limits are listed only once but
the premiums for that coverage are listed separately with each covered vehicle, courts have
found no ambiguity that allows for stacking. See Prudential Property & Casualty Insurance
Co. v. Kelly, 352 Ill. App. 3d 873, 876 (2004).
CONCLUSION
For all the reasons stated, we affirm the trial court's order entering a judgment in favor
of General Casualty.
Affirmed.
GOLDENHERSH, P.J., and WEXSTTEN, J., concur.
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NO. 5-09-0389
IN THE
APPELLATE COURT OF ILLINOIS
FIFTH DISTRICT
___________________________________________________________________________________
LESLIE HANSON, as the Administrator of the ) Appeal from the
Estate of Brian R. Waters, Deceased, ) Circuit Court of
) Madison County.
Plaintiff-Appellant, )
)
v. ) No. 08-MR-658
)
LUMLEY TRUCKING, LLC, and )
GENERAL CASUALTY COMPANY OF )
ILLINOIS, ) Honorable
) Clarence W. Harrison II,
Defendants-Appellees. ) Judge, presiding.
___________________________________________________________________________________
Rule 23 Order Filed: July 14, 2010
Motion to Publish Granted: July 29, 2010
Opinion Filed: July 29, 2010
___________________________________________________________________________________
Justices: Honorable Bruce D. Stewart, J.
Honorable Richard P. Goldenhersh, P.J., and
Honorable James M. Wexstten, J.,
Concur
___________________________________________________________________________________
Attorney David E. Leefers, Leefers Law Office, 210 North West Street, Jacksonville, IL
for 62650
Appellant
___________________________________________________________________________________
Attorney Michael J. Bedesky, Reed, Armstrong, Gorman, Mudge & Morrissey, P.C., 115
for North Buchanan, P.O. Box 368, Edwardsville, IL 62025
Appellees
___________________________________________________________________________________