Case Name: Nelda J. MITCHELL, Individually and on Behalf of the Heirs at Law and Wrongful Death Beneficiaries of David E. Mitchell, Deceased v. UNITED SERVICES AUTOMOBILE ASSOCIATION OF SAN ANTONIO, TEXAS (USAA)
Court: Mississippi Supreme Court
Jurisdiction: Mississippi
Decision Date: 2002-12-05
Citations: 831 So. 2d 1144
Docket Number: No. 2001-CA-01362-SCT
Parties: Nelda J. MITCHELL, Individually and on Behalf of the Heirs at Law and Wrongful Death Beneficiaries of David E. Mitchell, Deceased v. UNITED SERVICES AUTOMOBILE ASSOCIATION OF SAN ANTONIO, TEXAS (USAA).
Judges: PITTMAN, C.J., WALLER, COBB AND CARLSON, JJ., CONCUR. DIAZ, J., DISSENTS WITH SEPARATE WRITTEN OPINION JOINED BY McRAE, P.J., AND GRAVES, J. EASLEY, J., DISSENTS WITH SEPARATE WRITTEN OPINION JOINED BY McRAE, P.J.
Reporter: Southern Reporter, Second Series
Volume: 831
Pages: 1144–1156

Head Matter:
Nelda J. MITCHELL, Individually and on Behalf of the Heirs at Law and Wrongful Death Beneficiaries of David E. Mitchell, Deceased v. UNITED SERVICES AUTOMOBILE ASSOCIATION OF SAN ANTONIO, TEXAS (USAA).
No. 2001-CA-01362-SCT.
Supreme Court of Mississippi.
Dec. 5, 2002.
Richard T. Phillips, Batesville, Lundy W. Daniel, Memphis, TN, attorneys for appellants.
Robert F. Stacy, Jr., Oxford, attorney for appellee.

Opinion:
SMITH, P. J"
for the Court.
¶ 1. This case concerns a claim for uninsured motorist coverage pursuant to the policy terms of an insurance contract. David E. Mitchell (Mitchell) suffered injuries in a car accident on May 1, 1995, and subsequently died. United Services Automobile Association (USAA) had issued an insurance policy with uninsured motorist benefits to Mitchell. The policy provided a $300,000 uninsured motorist coverage limit for each of the two vehicles described in the policy. Accordingly, the policy provided for an aggregate amount of $600,000 in coverage. However, USAA ultimately denied the uninsured motorist benefits to the widow, Nelda J. Mitchell (Nelda) and her children.
¶ 2. On March 18, 1998, Nelda on behalf of herself and her two children, Jessica Anne Mitchell and Benjamin Parrish Mitchell (collectively named hereinafter as "Nelda"), filed suit against USAA in Tuni-ca County Circuit Court to recover the uninsured motorist insurance benefits.
¶ 3. After an agreed change of venue to the Circuit Court of DeSoto County, the case was tried by agreement before the circuit court sitting without a jury. The trial court denied coverage under the insurance policy to Nelda. The trial court based its decision in part on the lack of physical contact between Mitchell's vehicle and the unidentified, uninsured motorist vehicle. Nelda timely appealed to this Court. Finding no error by the trial court, we affirm.
FACTS
¶ 4. On May 1, 1995, David E. Mitchell was killed in an automobile collision on U.S. Highway 61 in DeSoto County, Mississippi. Charles Garrett (Garrett) was an eyewitness to the accident. By stipulation, all parties agreed that the collision occurred according to the description of events by Garrett in his deposition. The parties also agreed that in the event coverage was applicable, USAA would pay $600,000, no more and no less. This meant that if coverage was awarded then a payment of $600,000 would made with no fifteen percent (15%) appeal penalty, no prejudgment interest, no post-judgment interest, and no further litigation. The parties stipulated that there was no physical contact between Mitchell's vehicle and the tortfeasor's vehicle. Further, the parties stipulated that neither the owner/operator nor the vehicle have been found and that the owner/operator of the vehicle is unknown in the sense that the person cannot be identified
¶ 5. According to Garrett, at the time of the collision, Highway 61 was a two lane road. Garrett was traveling north toward Memphis. He looked in his rear view window and noticed a white car going in and out of traffic. The white car was also traveling in a northerly direction. The white car was small with Tennessee license plates and driven by a black male. Garrett saw a Mercury Sable station wagon (owned by Mitchell) traveling southbound. The white car passed Garrett and pulled into the oncoming lane occupied by Mitchell's station wagon. At this point the white car and Mitchell's station wagon were approaching each other head-on. Garrett re alized the potential for a wreck and pulled to the shoulder of the road and stopped his van.
¶ 6. Mitchell's vehicle pulled off the road to avoid a head-on collision. The white car, on the other hand, continued north and did not stop. Garret stated that "[t]he Mercury went off on down in the ravine. It looked like a rocket when it came out. The next thing I knew, all I seen was a blaze of fire." Mitchell's vehicle then came all the way across the road and hit the front of Garrett's van. The station wagon went underneath and then came out from under Garrett's van. Garret did not see any contact between the white car and the station wagon.
¶ 7. Mitchell had motor vehicle insurance with USAA at the time of the collision and his death. The uninsured motorist coverage had an aggregate amount of $600,000.
¶ 8. The parties agreed to try the case without a jury. At the close of Nelda's case, the trial court sitting without a jury denied USAA's motion for directed verdict. Following this ruling, USAA put on no proof at trial. After reviewing the evidence the trial court determined that Nelda was not entitled to uninsured motorist benefits under the USAA policy. From this ruling, Nelda and the children filed an appeal to this Court.
ISSUES
1. Whether the trial court erroneously denied Mitchell's claim for uninsured motorist coverage against United Services Automobile Association.
2. Whether the trial court erroneously admitted into evidence statistics and the affidavit of Charles J. Weeks.
DISCUSSION
¶ 9. This case boils down to a dispute between the coverage provided pursuant to the Mississippi uninsured motorist statute definitions, Miss.Code Ann. § 83-11-103 (1999), and the contracted coverage as provided in the USAA policy to Mitchell. Specifically, the parties disagree whether, under the policy definitions and facts of this case, uninsured motorist coverage is provided under provisions C(l) and (2). In addition, the parties dispute the significance of Section C(4) of the policy and the minimum requirements of the uninsured motorist statute where there is no physical contact between the insured and an unidentified vehicle and owner or operator of that vehicle. The parties base their arguments on the definitions as provided in the statute and the insurance policy.
¶ 10. Nelda argues that the USAA policy does not match the statute. She claims that the policy expands and provides more coverage than the uninsured motorist statute, and therefore, she argues the trial court erroneously denied her benefits under the contract. USAA, on the other hand, argues that the policy is consistent with the uninsured motorist statute and no coverage exists in this case.
¶ 11. The applicable Mississippi Code defining uninsured motorists at issue is as follows:
(c) The term "uninsured motor vehicle" shall mean:
(i) A motor vehicle as to which there is no bodily injury liability insurance; or
(ii) A motor vehicle as to which there is such insurance in existence, but the insurance company writing the same has legally denied coverage thereunder or is unable, because of being insolvent at the time of or becoming insolvent during the twelve (12) months following the accident, to make payment with respect to the legal liability of its insured; or
(in) An insured motor vehicle, when the liability insurer of such vehicle has provided limits of bodily injury liability for its insured which are less than the limits applicable to the injured person provided under his uninsured motorist coverage; or
(iv) A motor vehicle as to which there is no bond or deposit of cash or securities in lieu of such bodily injury and property damage liability insurance or other compliance with the state financial responsibility law, or where there is such bond or deposit of cash or securities, but such bond or deposit is less than the legal liability of the injuring party; or
(v) A motor vehicle of which the owner or operator is unknown; provided that in order for the insured to recover under the endorsement where the owner or operator of any motor vehicle which causes bodily injury to the insured is unknown, actual physical contact must have occurred between the motor vehicle owned or operated by such unknown person and the person or property of the insured. No vehicle shall be considered uninsured that is owned by the United States government and against which a claim may be made under the Federal Tort Claims Act, as amended.
Miss.Code Ann. § 83-11-103 (1999).
¶ 12. The applicable portion of the USAA insurance policy reads as follows:
C. Uninsured motor vehicle means a land motor vehicle or trailer of any type:
1.To which no liability bond or policy, or deposit of cash or securities applies at the time of the accident.
2. To which a liability policy applies at the time of the accident. In this case its limit for liability must be less than the limit of liability for this coverage.
3. To which a liability bond or deposit of cash or securities applies at the time of the accident but is not enough to pay the full amount the covered person is legally entitled to recover as damages.
4. Which is a hit and run vehicle whose operator or owner cannot be identified and which hits you or any family member; a vehicle which you or any family member are occupying; or your covered auto.
5. To which a liability bond or policy applies at the time of the accident but the bonding or insuring company denies coverage or is or becomes insolvent.
¶ 13. Nelda contends that the lawsuit centers on the contract between Mitchell and USAA and not on the minimum requirements as provided in the Mississippi uninsured motorist act provisions. The argument addresses the "physical contact" requirement when the identity of an uninsured motor vehicle driver is unknown.
¶ 14. Nelda claims that under the insurance policy contract, she is entitled to collect the uninsured motorist benefits. She bases her claim on the theory that the tortfeasor's vehicle is considered an uninsured motorist vehicle in accordance with Sections C(l) and (2) of the policy. As the above cited USAA policy provisions indicate, recovery is allowable when either the tortfeasor (1) has no liability insurance, Section C(l); or (2) when the tortfeasor has liability insurance but the limits are in an amount less than the $600,000 uninsured motorist coverage provided in Mitchell's USAA policy, Section C(2).
¶ 15. Further, Nelda asserts that the trial court erred when it stated that "[i]n order to recover uninsured motorist benefits, both the statute and the USAA policy require physical contact when the identity of the alleged uninsured motorist is unknown." She claims that the USAA policy does not require physical contact when either an owner or an operator of a vehicle, defined as an uninsured motor vehicle pursuant to Section C(l) and (2), is unknown. Again, Section C(l) and (2) covers the insured when there is either no liability insurance or if the liability coverage limits are less than the Mitchell's USAA $600,000 policy limit.
¶ 16. In addition, Nelda asserts that the USAA policy never requires physical contact, with the exception of Section C(4), a "hit and run" definition. She claims that this is not a hit and run case, as expressly plead in the complaint. Also, the policy never requires physical contact if the identity of uninsured motorist, as defined by Sections C(l) and (2) is unknown.
¶ 17. USAA argues that Section C(4) restricts the uninsured motorist coverage when physical contact occurs and the owner or operator is not identified. As for Section C(l) and (2), USAA maintains that the circumstances, as outlined in these two provisions of the policy, address identified vehicles for a comparison of policy limits. Again, USAA states Mitchell's policy is consistent with Miss.Code Ann. § 83-11-103(c)(v).
¶ 18. The trial court noted that pursuant to Massachusetts Bay Insurance Co. v. Joyner, 763 So.2d 877, 881 (Miss.2000), that the USAA policy was similar to Miss. Code Ann. § 83-11-103. Citing Joyner the trial court held that "the statute does not allow recovery in the absence of physical contact, notwithstanding provisions (c)(i) and (in)."
¶ 19. A review of the policy reveals that physical contact is required in the event of a hit and run accident. Again, a comparison of Section C(4) of the contract states that an uninsured motor vehicle is one "[w]hich is a hit and run vehicle whose owner or operator cannot be identified and which hits you . " (emphasis added). The key language in the statute states that "[a] motor vehicle of which the owner or operator is unknown; provided that in order for the insured to recover under the endorsement where the owner or operator of any motor vehicle which causes bodily injury to the insured is unknown, actual physical contact must have occurred...." Miss.Code Ann. § 83 — 11— 103(c)(v) (emphasis added).
¶ 20. Indeed, the trial court provided an incredibly insightful conclusion:
This Court is loath to reach this conclusion. The result is horrendous. We have a plaintiff who was killed as the result of the actions of another driver who cannot provide insurance coverage since he fled the scene. Disinterested witnesses confirm the factual occurrences and there is no hint nor possibility of fraud. Denying plaintiff coverage in this case means that anyone finding themselves in a similar situation must, in order to be sure the insurance they have paid for will cover them, let themselves be hit by the offending driver of the other vehicle since every responsible driver in this area is well aware of the fact that almost no one in the Mid South area has insurance, or adequate insurance, on their car. Of course, then the responsible driver will be faced with a counter claim or criminal charges, if serious injuries result, for his failure to take the last clear chance to avoid the accident and mitigate damages.
Understandably, an insurer wants to guard against a false claim for uninsured motorist coverage when an insured has a one car accident yet claims another unknown driver caused the accident. However, in the instant case Garrett was a witness to the events that led to the accident, and both parties stipulated to his version of events.
¶ 21. Based on recent caselaw, the trial court was correct in its conclusion. The facts of the present case are almost identical to the facts in Massachusetts Bay Insurance Co. v. Joyner, 763 So.2d 877 (Miss.2000), where there was also no physical contact between the vehicles. This Court held in Joyner that the Mississippi uninsured motorist statute, Miss.Code Ann. § 83-ll-103(v), required actual physical contact when the owner or operator of the adverse vehicle is unknown or cannot be identified. Id. at 881.
¶22. USAA argues that the policy is consistent with the uninsured motorist statute and no coverage exists. We agree with this argument. The parties agreed that the owner of the white vehicle was unknown and that there was no physical contact between the white vehicle and Mitchell's car. Had there been any contact, there would have been a recovery for Mitchell. However, based on the absence of physical contact, the decision of the Circuit Court of DeSoto County is affirmed.
¶ 23. As for USAA's contention that the trial court erred by admitting statistical information and an affidavit into evidence in this non-jury case, this issue is without merit.
CONCLUSION
¶24. For these reasons, the judgment of the Circuit Court of DeSoto County is affirmed.
¶ 25. AFFIRMED.
PITTMAN, C.J., WALLER, COBB AND CARLSON, JJ., CONCUR. DIAZ, J., DISSENTS WITH SEPARATE WRITTEN OPINION JOINED BY McRAE, P.J., AND GRAVES, J. EASLEY, J., DISSENTS WITH SEPARATE WRITTEN OPINION JOINED BY McRAE, P.J.