ALLRED & ALLRED, PC
7030 Fain Park Drive, Suite 9Montgomery, Alabama 36117
Telephone: 334-396-9200
Fax: 334-396-9977
News
6/1/2007 - Alabama Supreme Court Reverses Judgment Against Insurer
Montgomery, Alabama 36117
Telephone: 334-396-9200
Fax: 334-396-9977
The firm was retained by an insurer post-verdict to appeal a $70,000 judgment entered by an Etowah County Circuit Court against the insurer of a trucking company under the UIM portion of its policy. The plaintiff had also asserted a claim for bad faith against the insurer that was to be tried separately. The firm did not represent the insurer at trial.
The plaintiff, who was employed by the insured as a driver, claimed that he was injured when his truck left the roadway as he attempted to avoid an oncoming vehicle which left the scene and was never identified. The policy was issued and delivered to the trucking company in Tennessee and, thus, the insurer argued that Tennessee law applied. The insurer denied UIM coverage based on a Tennessee UIM endorsement contained in the policy which required corroborative evidence of a phantom vehicle. While this provision was consistent with Tennessee UIM law, Alabama law is to the contrary. Thus, the plaintiff argued that Alabama law should apply and the policy endorsement requiring corroborative evidence should not have applied. The plaintiff also argued that the insurer's notice to apply foreign law pursuant to Rule 44.1 of the Alabama Rules of Civil Procedure was untimely.
The Court agreed with the appellant insurer, holding that the notice to apply foreign law was timely and that Tennessee law should apply, as the policy was issued and delivered to the insured in that state. Thus, the Court held, the endorsement requiring corroborative evidence of the phantom vehicle applied and, with the plaintiff having failed to present such evidence, the trial court erred when it denied the insurer's post-trial motions and the judgment was reversed.
On remand, summary judgment was granted as to the bad faith claim with the plaintiffs having failed to prove that they were entitled to recover on the underlying contract.
See, Cherokee Insurance Company, Inc. v. Sanches, 975 S.2d 287 (Ala.2007)