Opinion ID: 2395601
Heading Depth: 1
Heading Rank: 7

Heading: Common Law Public Policy Parental and Interspousal Immunity Household Exclusion Invalid

Text: The public policy of this State is not only expressed in legislative enactments but also evolves as a matter of common law. The Delaware common law no longer recognizes parental immunity for negligence arising from an automobile accident, to the extent that the actionable conduct is covered by liability insurance. Williams v. Williams, Del.Supr., 369 A.2d 669, 673 (1976). See Sears, Roebuck & Co. v. Huang, Del.Supr., 652 A.2d 568 (1995); Schneider v. Coe, Del. Supr., 405 A.2d 682 (1979). Interspousal immunity is also no longer recognized at common law in Delaware, without regard to the availability of insurance. Beattie v. Beattie, Del.Supr., 630 A.2d 1096, 1100-01 (1993). These public policies, which do not permit any household exclusions in insurance policies, were explained by this Court in Williams v. Williams, 369 A.2d 669, and Beattie v. Beattie, 630 A.2d 1096. In Williams, we held that the doctrine of parental immunity was inapplicable in automobile negligence cases to the full extent of liability coverage: [W]e are of the opinion that an absolute rule of parental immunity in tort has no rational basis under modern day conditions and circumstances, especially [with] the prevalence of liability insurance. We hold, therefore, with an ever-increasing number of jurisdictions, that in an action for negligence arising from an automobile accident, brought on behalf of an unemancipated minor child against a parent, the doctrine of parental immunity is not applicable to the extent of the parent's automobile liability insurance coverage; but that, otherwise, the doctrine is applicable in such case. Williams v. Williams, 369 A.2d at 673. The public policy identified in Williams encourages parents to purchase automobile liability insurance to provide a source of compensation for children who are injured by a parent's negligent driving. More recently, the common law doctrine of interspousal tort immunity was completely abrogated in Beattie. In doing so, we recognized that interspousal tort immunity at common law was inconsistent with the Delaware Financial Responsibility Laws. Beattie v. Beattie, 630 A.2d at 1100. In Beattie, we specifically relied, in part, on Wagamon, stating that [a]lthough the Wagamon decision concerned a household exclusion in an insurance policy while the case at bar involves a common law doctrine, the important aspect of Wagamon is this Court's interpretation of the Financial Responsibility Laws. Id. at 1100, n. 10. Moreover, in Beattie, we reaffirmed the holding in Wagamon that Delaware's Financial Responsibility Laws `are drafted in broad language which provides for liability coverage for all claims up to the stated limits, regardless of the identity of the plaintiff.' Id. at 1100 ( quoting State Farm Mut. Auto. Ins. Co. v. Wagamon, 541 A.2d at 560). As we stated in Wagamon, [t]he law admits of no exclusion intended to deny compensation to a portion of the class of victims which the statutes were designed to protect. State Farm Mut. Auto. Ins. Co. v. Wagamon, 541 A.2d at 560. The following statement by the New Jersey Supreme Court was cited with approval by this Court in Williams and is worthy of repetition: In a day when automobile accidents are unfortunately becoming so frequent and the injuries suffered by the passengers are often so severe, it seems unjust to deny the claims of the many because of the potentiality for fraud of the few. Moreover, there is something wanting in a system of justice which permits strangers, friends, relatives and emancipated children to recover for injuries suffered as a result of their driver's negligence but denies this right to the driver's spouse and minor children who are also passengers in the same vehicle. Williams v. Williams, 369 A.2d at 673 ( quoting Immer v. Risko, N.J.Supr., 56 N.J. 482, 267 A.2d 481, 488 (1970)). Accord Beattie v. Beattie, Del.Supr., 630 A.2d at 1098-99. The modified household exclusion in Nationwide's policy precluded Seemans from purchasing automobile liability insurance beyond the statutory minimum for the benefit of his son, Daniel. Such modified household exclusions deny the Delaware driving public the opportunity to purchase more than the statutory minimum amount, in order to compensate their own children and spouses injured in motor vehicle accidents caused by the parents' or spouses' negligence. Thus, Nationwide's modified household exclusion contravenes the public policy embodied in Delaware's tort law with regard to the limits on parental tort immunity and the complete abrogation of interspousal tort immunity. See Williams v. Williams, Del.Supr., 369 A.2d 669, 673 (1976); and Beattie v. Beattie, Del.Supr., 630 A.2d 1096, 1100-01 (1993). Accordingly, such an exclusion is void and unenforceable.