Title: Taylor v. Tennessee Farmer's Mut. Ins. Co.
Citation: 659 So. 2d 30
Docket Number: 1930993
State: Alabama
Issuer: Alabama Supreme Court
Date: February 17, 1995

659 So. 2d 30 (1995)
Carl Benny TAYLOR
v.
TENNESSEE FARMER'S MUTUAL INSURANCE COMPANY.
1930993.

Supreme Court of Alabama.
February 17, 1995.
Rehearing Denied April 7, 1995.
*31 David E. Hampe, Jr., Birmingham, for appellant.
Jack M. Bains, Jr. of McDaniel, Hall, Conerly &amp; Lusk, P.C., Birmingham, for appellee.
INGRAM, Justice.
Carl Benny Taylor appeals from a summary judgment entered in favor of Tennessee Farmer's Mutual Insurance Company ("TFMI") on Taylor's claim for underinsured motorist benefits.
Taylor was a mechanic at Performex Lube "N" Tune, Inc. In November 1989, Mohamed S. Janjua was attempting to drive his automobile into a service bay to have work performed. For unknown reasons, Janjua accelerated his vehicle and pinned Taylor against the service bay doors, causing Taylor severe injuries. Because of his injuries, Taylor received $55,700 in workers' compensation benefits and $50,000 from Janjua's liability insurer. Taylor's damages exceeded the total of these awards, and he sued TFMI, his own insurer, for underinsured motorist benefits.
In its summary judgment for TFMI, the trial court held that Taylor's insurance policy must be construed under the substantive law of the state of Tennessee. Under Tennessee law, which permits no "stacking" of coverages and which permits certain "offsets" against recovery of underinsured motorist benefits, Taylor would be entitled to nothing from TFMI. However, under Alabama law, allowing stacking and not permitting the offsets, Taylor would be entitled to underinsured motorist benefits.
Taylor is originally from Benton, Tennessee. He and his wife moved from Benton to Birmingham, Alabama, in July 1988, when Mrs. Taylor entered dental school. TFMI renewed the insurance policy three times after the Taylors moved from Tennessee to Alabama. Approximately one year before this accident, TFMI mailed a premium notice to the Taylors at their former Tennessee address. The premium notice was returned to TFMI undelivered, with a Birmingham address noted on the front of the returned envelope. The underwriting department sent a letter to the general agent to ascertain whether the Taylors' address in Birmingham was temporary or permanent. The general agent responded with the statement "Mrs. Taylor is in medical school in Alabama." TFMI continued to renew the policy to the Taylors.
Taylor appealed from TFMI's summary judgment. He argues that the court erred in applying Tennessee law to his contractual relationship with TFMI. Specifically, he argues that the evidence before the court on TFMI's summary judgment motion clearly showed that the policy under which he claimed benefits had been "delivered or issued for delivery" in Alabama; and, citing Ala.Code 1975, § 32-7-23(a), he argues that that fact makes Alabama's law regarding uninsured/underinsured motorist insurance applicable. Section 32-7-23(a) provides:
Both parties cite Cotton v. State Farm Mut. Auto. Ins. Co., 540 So. 2d 1387 (Ala. 1989), as controlling. In that case, Cotton *32 worked in Alabama during the week and went home to Tennessee on the weekends. He never notified his insurance company that he was spending the majority of his time in Alabama. Cotton contended that because his automobile was principally garaged in Alabama, Alabama law should apply. The Cotton Court determined that although Cotton's car was principally garaged in Alabama, his insurance policy had not been "delivered or issued for delivery" in Alabama. The policy had been issued in Tennessee and had been mailed to Cotton at his Tennessee address. The insurance company knew nothing about Cotton's spending the majority of his time in Alabama, and the fact that he mailed his premium checks from Alabama was insufficient to require that Alabama law be applied.
This case is distinguishable from Cotton. In Cotton, there was insufficient evidence to find that the policy had been "delivered or issued for delivery" in Alabama. The insurer had known nothing about Cotton's residing in Alabama during the week. To the contrary, TFMI knew the Taylors were living in Alabama. The evidence in this case would support only the conclusion that Taylor's policy was "delivered or issued for delivery" in Alabama. Therefore, pursuant to § 32-7-23, Alabama law must be applied in determining the underinsured benefits to which Taylor is entitled. Accordingly, we reverse the judgment and remand the cause for further proceedings consistent with this opinion.
REVERSED AND REMANDED.
SHORES, HOUSTON, KENNEDY and COOK, JJ., concur.
MADDOX, J., dissents.
MADDOX, Justice (dissenting).
I believe the trial judge correctly determined that Tennessee law was applicable in this case; therefore, I respectfully dissent.