Preview:

IN THE SUPREME COURT OF TENNESSEE AT KNOXVILLE
Assigned on Briefs May 31, 2001 RANDALL D. WEBBER, JR., ET AL. v. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY
Appeal by Permission from the Court of Appeals, Eastern Section Circuit Court for Anderson County Nos. 96LA0572, 97LA0112 Hon. James B. Scott, Judge

No. E1999-01909-SC-R11-CV - Filed July 3, 2001

The sole issue in this appeal is whether the plaintiff ratified an insurance policy that provided uninsured motorist coverage in amounts less than the policy's coverage for bodily injury liability. The plaintiff argued in the trial court that he did not authorize the lesser limits of uninsured motorist coverage contained in the contract and that the court should construe the policy to provide for coverage equivalent to the liability provided for bodily injury. The trial court granted the defendant's motion for summary judgment, finding that the plaintiff had ratified, and was bound by, the coverage limits as expressed in the contract. On appeal, the Court of Appeals reversed, finding that an issue of fact existed as to whether the plaintiff intended to ratify the lower uninsured motorist coverage limits. We granted permission to appeal and hold that the trial court correctly granted summary judgment to the defendant. The judgment of the Court of Appeals is reversed. Tenn. R. App. P. 11 Application for Permission to Appeal; Judgment of the Court of Appeals Reversed; Case Remanded to Circuit Court WILLIAM M. BARKER, J., delivered the opinion of the court, in which E. RILEY ANDERSON, C.J., and FRANK F. DROWOTA, III, ADOLPHO A. BIRCH, JR., and JANICE M. HOLDER, JJ., joined. James S. McDonald, Knoxville, Tennessee, for the appellant, State Farm Mutual Automobile Insurance Company. Roger L. Ridenour, Clinton, Tennessee, for the appellees, Randall D. Webber, Sr., and Lisa S. Webber, individually, and as parents and natural guardians of, Randall D. Webber, Jr.

OPINION

FACTUAL BACKGROUND On October 13, 1996, the plaintiff, Randall D. Webber, Sr.,was involved in an automobile accident with Nancy Seivers while driving on Highway 25 in Anderson County. Mr. Webber sustained serious injuries, and he later filed suit to recover damages arising out of this accident.1 However, because Ms. Seivers was uninsured, the plaintiff sought payment from the defendant, State Farm Mutual Automobile Insurance Company, pursuant to his uninsured motorist ("UM") policy. The contract for the plaintiff's automobile insurance policy with the defendant was originally executed on July 21, 1986. On that date, the plaintiff's mother-in-law, Ms. Brenda Southard, applied to have her daughter's then current automobile insurance policy reissued under her married name. At the same time, Ms. Southard requested coverage for the plaintiff's automobile, which was previously uninsured, in amounts identical to her daughter's policy. The liability limits for bodily injury under these policies were $50,000 per person and $100,000 per accident. Importantly, however, Ms. Southard requested the statutory minimum amounts of UM coverage on both policies, a practice that she followed when insuring her own vehicles. Accordingly, instead of obtaining the standard UM coverage, which is equivalent to the policy's liability limits for bodily injury, she obtained lesser UM coverage in the amounts of $15,000 per person and $30,000 per accident for bodily injury. These policies have remained unaltered since 1986, except that by operation of law, the minimum statutory amounts of UM coverage have increased to $25,000 per person and $50,000 per accident. See Tenn. Code Ann.

Download webberrandall.pdf

Tennessee Law