Case Name: Larry M. NATION, Special Administrator of the Estate of Jeffrey George, deceased, Appellant, v. STATE FARM INSURANCE CO., Appellee
Court: Oklahoma Supreme Court
Jurisdiction: Oklahoma
Decision Date: 1994-05-17
Citations: 880 P.2d 877
Docket Number: No. 70513
Parties: Larry M. NATION, Special Administrator of the Estate of Jeffrey George, deceased, Appellant, v. STATE FARM INSURANCE CO., Appellee.
Judges: LAVENDER, V.C.J., and SIMMS, KAUGER and SUMMERS, JJ., concur.
Reporter: Pacific Reporter 2d
Volume: 880
Pages: 877–900

Head Matter:
Larry M. NATION, Special Administrator of the Estate of Jeffrey George, deceased, Appellant, v. STATE FARM INSURANCE CO., Appellee.
No. 70513.
Supreme Court of Oklahoma.
May 17, 1994.
Rehearings Denied Sept. 22, 1994.
C. Rabón Martin, Martin & Turner, Tulsa, for appellant.
Galen L. Brittingham, Jody R. Nathan, Thomas, Glass, Atkinson, Haskins, Nellis & Boudreaux, Tulsa, for appellee.

Opinion:
PER CURIAM:
This is a claim against State Farm Insurance Co. under three automobile liability policies. Each policy contained a "household exclusion", providing that the liability insurance does not cover injury to "any member of the family of an insured residing in the same household of the insured." The question is whether that exclusionary clause runs counter to the Oklahoma statute requiring minimum limits of liability insurance as a condition of operating a vehicle. Under the facts of this case, and as to the policies in question, we find that the statute does require invalidation of the household exclusion up to the amount of liability insurance required by statute.
Michael George fell asleep while driving a vehicle borrowed from Frances Morgan. An accident ensued, killing George's five-year-old son, Jeffrey. The vehicle was insured by State Farm Insurance Company under a policy purchased by Morgan, the liability coverage being $100,000. George also had two policies issued by State Farm, the liability limits on both of these being $25,000. All three polices contained both liability and uninsured motorist coverage. Total liability coverage was $150,000 and total uninsured motorist coverage was $45,000.
The administrator of the deceased son's estate filed a claim with State Farm under the liability and UM portions of all three policies. State Farm denied the claim, asserting the household exclusion as the basis for denial under all three policies. This exclusion provides that insurance coverage shall not extend to members of the family of the insured who reside in the same household. It is not disputed that George, the father, was an insured under all three policies, and it is the liability insurance coverage afforded by these three policies that is contested today.
The administrator filed suit in state court against State Farm and George. In turn, State Farm filed an action in federal court, asking for a declaration that the household exclusion was valid under current Oklahoma law. The federal court agreed, except as to the exclusion's application to UM coverage. The administrator appealed to the Tenth Circuit, which appeal has been stayed pending this proceeding. State Farm paid the total UM coverage of $45,000.
A non-jury trial was held in the state court action, resulting in a judgment against State Farm and George. The total judgment was for $130,000, but the payment of UM benefits was subtracted from the total, leaving $85,-000 owing on the judgment. The administrator filed a garnishment proceeding against State Farm seeking recovery of the remaining $85,000. State Farm denied responsibility for the judgment. The trial court granted State Farm's motion for summary judgment.
The plaintiffi'administrator appealed and the Court of Appeals reversed. Its basis was that Court's belief that the household exclusion was invalid in light of Oklahoma's legislation requiring a minimum amount of liability insurance. The court ordered that the estate be permitted to recover up to the limits of the policies. We granted certiorari to review this question of first impression.
The plaintiff urges that the household exclusion is invalid because it violates the policy behind Oklahoma's Compulsory Liability Insurance Law, 47 O.S.Supp.1983 Sections 7-600 through 7-607. State Farm, on the other hand, asserts that this Court upheld the exclusion in Looney v. Farmers Insurance Group, 616 P.2d 1138 (Okla.1980), and that we should do likewise today.
It is the Court's judgment today that upon the facts of this case the household exclusion is invalid insofar as it attempts to defeat the legislature's mandate of a minimum amount of liability insurance coverage available for persons in the position of the deceased passenger here. The plaintiff may recover the statutory minimum amount of $10,000 each, or a total of $30,000, under the three liability policies. The trial court's summary judgment for State Farm is reversed and the District Court is instructed to enter judgment for the plaintiff consistent herewith.
The issues raised in the dissent by Wilson, J., were neither advanced nor briefed by the parties. We express no opinion on how any of these legal problems collateral to this case should be settled.
LAVENDER, V.C.J., and SIMMS, KAUGER and SUMMERS, JJ., concur.
OPALA and WATT, JJ., concur in judgment.
HODGES, C.J., and HARGRAVE and ALMA WILSON, JJ., dissent.