Opinion ID: 883630
Heading Depth: 1
Heading Rank: 2

Heading: Leibrand v. National Farmers Union Property and Casualty Company

Text: The following facts have been agreed upon by the parties: Leslie Leibrand and Lois Leibrand are husband and wife and are the parents of Gordon Leibrand. At all times relevant, they resided together as a family unit at their home in Scobey, Montana. The Leibrands have been continuously insured pursuant to an automobile liability insurance policy issued by the defendant, National Farmers Union Property and Casualty Company, since 1975. The liability coverage portion of that policy provided as follows: We will pay damages for which any insured person is legally liable because of bodily injury and property damage arising out of the ownership, maintenance or use of a car or a utility trailer. Insured person was defined to include the named insureds (Leslie and Lois) or a relative. The limit of liability coverage available per occurrence for each individual injured was specified to be $100,000. The record does not indicate that there was any change in these general liability provisions during the term of the Leibrands' policy. The Leibrands' policy originally included the following exclusion: This coverage does not apply to ... (10) bodily injury to any insured person. In 1983, we decided Transamerica Ins. v. Royle (1983), 202 Mont. 173, 656 P.2d 820. In that case, we held that household exclusion clauses, like the one included in the Leibrand policy, were void and unenforceable, based on § 61-6-301(1), MCA, which requires that motorists carry insurance against loss resulting from liability suffered by any person. In 1991, when the Leibrands renewed their automobile insurance policy, they were provided with an amendatory endorsement which provided that: 1. Exclusion (10) under part 1, Liability, is replaced by the following: (10) bodily injury to you or any relative to the extent the limits of liability of this policy exceed the limits of liability required by law. At the time of subsequent policy renewals, the Leibrands were provided with a declarations page which stated that [l]iability payments to household members are limited to the Financial Responsibility limits of the policy state. On November 22, 1992, Gordon Leibrand was injured while riding in an insured vehicle being driven by his mother, Lois. He suffered injuries, which are alleged to be serious, and has sustained substantial damages. He has alleged that his damages resulted from Lois Leibrand's negligence. The Leibrands have made demand for payment to Gordon pursuant to their liability policy for the full $100,000 of coverage provided pursuant to the policy's general liability provisions. National Farmers Union has paid the sum of $25,000, but pursuant to its amendatory endorsement, has refused to pay any additional amount.