Lunsford v. Mills

Douglas Lunsford was injured in an accident involving multiple tortfeasors. Lunsford filed a negligence action against Thomas Mills, Mills’ employer James Crowder, and Shawn Buchanan, who carried liability policies totaling $1,050,000. Plaintiff was covered by two underinsured motorist (UIM) policies with North Carolina Farm Bureau Mutual Insurance Company (Farm Bureau) with combined limits of $400,000. Buchanan’s provider tendered to plaintiff the $50,000 limits of Buchanan’s policy, and Plaintiff settled his claim with Mills’ and Crowder’s coverage provider for $850,000. Farm Bureau, an unnamed defendant, moved for summary judgment, arguing that Plaintiff was not entitled to UIM coverage because the combined policy limits of Defendants exceeded Plaintiff’s UIM limits. Plaintiff also moved for summary judgment, arguing that he was was entitled to recover $350,000 - Farm Bureau’s UIM policy limits minus an offset for Buchanan’s insurance payment. The trial court granted summary judgment for Lunsford. The Court of Appeals affirmed. The Supreme Court affirmed in part and reversed in part, holding (1) an insured is only required to exhaust the liability insurance coverage of a single at-fault motorist in order to trigger the insurer’s obligation to provide UIM benefits; but (2) the Court of Appeals erred in determining that Lunsford was entitled to interest and costs against Farm Bureau. View "Lunsford v. Mills" on Justia Law