Crunk v. State Farm Fire and Casualty Co.

Dore, J.

(dissenting) — The majority characterizes a cashier's check as the same as money, and therefore reduces the plaintiffs' recovery pursuant to a liability limitation in their homeowner's policy. I disagree and, like the Court of Appeals, believe the trial court award of $18,884.91 is correct. Nevertheless, although I would reach the same result as the Court of Appeals, I would do so for different reasons.

George Wright pleaded guilty to first degree theft for misappropriating a cashier's check the Crunks gave him to remodel their house. The Crunks had a homeowner's policy which insured against theft, and the Court of Appeals held that Wright's thievery was covered by the policy. Crunk v. State Farm Fire & Cas. Co., 38 Wn. App. 501, 506, 686 P.2d 1132 (1984). State Farm did not raise this issue on appeal, so this court need only consider whether the policy liability limitation of $100 for theft of money or bank notes applies to this cashier's check. RAP 13.7(b).

The majority cites to a substantial body of law stating that, for commercial purposes, a cashier's check is the functional equivalent of money. This is undoubtedly true. However, this case does not involve what parties would believe the meaning of a cashier's check is in the sophisticated commercial context. Rather, this court should construe the insurance policy in the way an average person purchasing insurance would understand it. Furthermore, exclusionary clauses, such as a limitation on liability, should be construed strictly against the insurer. Phil Schroeder, Inc. v. Royal Globe Ins. Co., 99 Wn.2d 65, 659 *31P.2d 509 (1983), modified, 101 Wn.2d 830, 683 P.2d 186 (1984). Accordingly, the issue before this court is whether an individual purchasing this insurance would believe that he or she is in the same position if someone steals his or her cashier's check as opposed to the same value in cash.

I believe that people generally view those thefts as different, and that they believe they have some recourse, such as notifying the bank, if the cashier's check is taken. Furthermore, while the majority cites 10 Am. Jur. 2d Banks § 544 (1963) to support its proposition that in the commercial context, a cashier's check is synonymous with money, the same section also states: "Cashiers' checks . . . are also frequently taken out by parties who desire to have the money represented by the check in that form rather than to carry cash ..." People obviously view cashier's checks as different from money.

Finally, the policy limits liability for both theft of "money" and of "bank notes". A "bank note" is a technical term denoting a bank's promissory note. It is valid for an indefinite period, and is used as currency in certain European countries. See Crunk, at 508. Therefore, bank notes have more characteristics of money than do cashier's checks, yet the policy treats bank notes as different from money. As the Court of Appeals pointed out, "If State Farm had intended that cashier's checks would constitute money simply because the two share certain functional characteristics, there would have been no need to list bank notes separately." Crunk, at 509 n.5.

I agree therefore with the result the Court of Appeals reached, although I disagree with a rule of law that that court proposed. The Court of Appeals stated: "An ambiguity exists when there is a difference of opinion among courts of different jurisdictions with respect to the construction of terms in insurance policies." Crunk, at 508. While some other jurisdictions have adopted this rule, the rule in this state has never allowed other courts in other states to determine whether an ambiguity exists. For example in Truck Ins. Exch. v. Rohde, 49 Wn.2d 465, 303 P.2d *32659, 55 A.L.R.2d 1288 (1956) and Grange Ins. Ass'n v. MacKenzie, 103 Wn.2d 708, 694 P.2d 1087 (1985) this court has found terms in insurance policies unambiguous even though other jurisdictions have differed as to the terms' meanings. To do otherwise would mean whenever two reasonable courts disagreed on the interpretation of a term in an insurance policy, the insured would prevail.

Conclusion

I believe the subject policy is ambiguous as to whether a cashier's check is money. As this ambiguity appears in an exclusionary clause, I would construe the policy in favor of the insured. I would uphold the Court of Appeals decision affirming the trial court's order in favor of the Crunks for $18,884.91.