Hisaw v. State Farm Mutual Automobile Insurance

Karen R. Baker, Judge,

concurring in part; dissenting in part. I agree that the trial judge erred in granting summary judgment on Hisaw’s personal policies and join in the majority’s decision to reverse on this issue. However, I disagree with the majority’s ultimate conclusion that Hisaw’s injuries arose out of the operation, maintenance, or use of the underinsured vehicle. That is a question for the trier of fact, and it is inappropriate for this court to resolve that issue as a matter of law. See Elam v. First Unum Life Ins. Co., 346 Ark. 291, 57 S.W.3d 165 (2001) (holding that where the parties go beyond the contract and submit disputed extrinsic evidence to support their interpretations of an insurance policy, a question of fact is presented).

The initial determination of the existence of an ambiguity in a contract rests with .the court and if ambiguity exists, then parol evidence is admissible and the meaning of the term becomes a question of fact for the fact-finder. C & A Const. v. Benning Const., 256 Ark. 621, 509 S.W.2d 302 (1974). Where different conclusions may be reached regarding what the undisputed facts demonstrate, summary judgment is inappropriate. See Elam v. First Unum Life Ins. Co., supra.

As for State Farm’s liability under the fire department policies, I believe we should reach the merits of the issue and reverse the award of summary judgment. The majority is concerned that facts needed to resolve this issue were not sufficiently developed below. We must keep in mind that this was a summary judgment proceeding, and the purpose of the proceeding was not to try the issues but to determine if there were any issues to be tried. See Thomas v. Stewart, 347 Ark. 33, 60 S.W.3d 415 (2001). I believe Hisaw adequately argued his status as an insured under the fire department policies, such that we are capable of reaching the merits of his argument. Further, I think the merits of his argument require reversal. The policy defines the named insured as the Inspiration Point Volunteer Fire Association. The association is obviously composed of its members. If a member of the association, in particular the chief of the fire department, does not qualify as an insured under the policy, then I must wonder who would qualify as an insured. Certainly a question of fact is presented as to who was intended as an insured, and, as a result, the issue is inappropriate for resolution by way of summary judgment. See generally Walker v. Stephens, 3 Ark. App. 205, 626 S.W.2d 200 (1981).

For the reasons stated, I respectfully dissent.