Case Title: Feeley v. Allstate Insurance Co.

Citation: 178 Vt. 642, 2005 VT 87, 882 A.2d 1230

Docket Number: 

State: vermont

Court: Vermont Supreme Court

Date: 2005-08-17T00:00:00Z

Document:
Feeley v. Allstate Insurance Co. (2004-191); 178 Vt. 642; 882 A.2d 1230

2005 VT 87

[Filed 17-Aug-2005]

                                 ENTRY ORDER

                                 2005 VT 87

                      SUPREME COURT DOCKET NO. 2004-191

                             FEBRUARY TERM, 2005

  Randal Feeley	                       }	APPEALED FROM:
                                       }
                                       }
       v.	                       }	Franklin Superior Court
                                       }	
  Allstate Insurance Company	       }
                                       }	DOCKET NO. S89-00 Fc

                                                Trial Judge: Howard E. 
                                                             VanBenthuysen

             In the above-entitled cause, the Clerk will enter:

       ¶  1.  Defendant Allstate Insurance Company appeals from a Franklin
  Superior Court judgment on plaintiff Randal Feeley's claim for underinsured
  motorist (UIM) benefits following a work-related motor vehicle accident. 
  At issue in Allstate's appeal is whether Feeley's UIM policy allows
  Allstate to deduct the amount of workers' compensation benefits Feeley
  received pursuant to New York law from the UIM proceeds due under his
  personal policy with Allstate.  The trial court entered judgment against
  Allstate on Feeley's claim, and we now affirm.  

       ¶  2.  Feeley is a Vermont resident who was working for a New York
  transportation company at the time of the motor vehicle accident giving
  rise to this litigation.  The driver responsible for the accident was
  underinsured, and his liability insurer paid the policy's $25,000 
  liability limit after the accident.  Feeley was covered by his employer's
  New York workers' compensation policy, and he received benefits pursuant to
  New York law.  Feeley sought additional compensation for his injuries under
  a Vermont-issued UIM policy with a $300,000 limit.  Coincidentally,
  Allstate was both the workers' compensation carrier for Feeley's New York
  employer and his Vermont UIM insurer. 

       ¶  3.  Allstate refused to pay Feeley the full amount of UIM
  benefits available under his policy.  Allstate believed that Feeley's
  policy entitled it to reduce the UIM obligation by the amount of workers'
  compensation Allstate had paid Feeley-totaling approximately
  $200,000-pursuant to New York law.  Seeking to enforce the terms of the UIM
  policy, Feeley filed a declaratory judgment action against Allstate in
  Franklin Superior Court.  While admitting that New York law prohibited
  Allstate, in its capacity as a workers' compensation insurer, from placing
  a lien on Feeley's UIM proceeds, the company urged the Franklin Superior
  Court to interpret Feeley's UIM policy to allow a reduction in UIM proceeds
  by the amount of workers' compensation benefits he received from Allstate. 
  The company argued that the reduction was necessary to prevent Feeley from
  receiving "double recovery."
   
       ¶  4.  In a preliminary order, the trial court ruled that (1) New
  York law governed Feeley's receipt of workers' compensation, and (2)
  pursuant to New York law, Allstate could not recoup its workers'
  compensation payments from UIM proceeds payable under Feeley's Vermont
  policy.  The court reserved the ultimate question of whether Vermont law or
  the UIM policy itself provided a basis for the offset Allstate sought until
  after the parties completed arbitration on the amount of Feeley's damages. 
  After the arbitration panel set Feeley's damages at $450,000, Feeley moved
  for summary judgment.  Allstate had paid Feeley only $210,000 in UIM
  benefits (the arbitration panel's noneconomic damages award) so Feeley
  asked the court to enter judgment for the remaining amount owed under his
  Allstate policy. (FN1)  The trial court granted Feeley's motion and entered
  judgment in his favor.

       ¶  5.  Allstate appeals, advancing the same arguments it presented
  to the trial court.  Like the trial court, we review Allstate's claims
  under the summary judgment standard, which allows the court to enter
  judgment for any party if the material facts are undisputed and the law
  supports the judgment.  V.R.C.P. 56(c)(3); Robertson v. Mylan Labs., Inc.,
  2004 VT 15, ¶ 15, 176 Vt. 356,