Opinion ID: 1354090
Heading Depth: 2
Heading Rank: 2

Heading: Stacking of underinsured-motorist coverage

Text: Turning our attention to the applicable law, we first acknowledge appellant's concession that she cannot recover underinsured-motorist coverage from State Farm on the two owned-but-not-insured vehicles under our current case law. Significantly, we considered the precise issue raised here in Clampit v. State Farm Mutual Auto. Ins. Co., 309 Ark. 107, 828 S.W.2d 593 (1992). Of course, in Clampit , we rejected the same arguments now advanced by appellant. Nevertheless, appellant disagrees with the trial court's reliance on our case law and urges us to abandon our position in Clampit . Appellant also invites us to extend our holding in Ross , a recent case where we allowed stacking of underinsured coverages. However, we permitted the stacking under specific facts unique to Ross . In Ross, coverage was imposed by operation of law because the insurance company failed to comply with a legislative mandate requiring that underinsured-motorist coverage be offered and, if declined, rejected in writing. Ross, 320 Ark. at 609-10, 899 S.W.2d at 56 (quoting 3 Alan Widiss, Uninsured and Underinsured Motorist Insurance § 32.7 (2d 1992)). Unlike the instant case, the insurance-policy language at issue in Ross prohibited the stacking of policies but not the stacking of cars within a single policy. Ross, 320 Ark. at 610, 899 S.W.2d at 56. Ross is distinguishable. Accordingly, we decline to extend its holding to the facts presented in this appeal. In any event, Chamberlin contends that our holding in Clampit reflects a minority-jurisdiction position. In response, State Farm insists that our case law is controlling precedent and that the instant facts, including an unambiguous insurance-policy exclusion, do not warrant a break from such precedent. We agree. Under the doctrine of stare decisis, we are bound to follow prior case law. The policy of stare decisis is designed to lend predictability and stability to the law. State of Arkansas Office of Child Support Enforcement v. Mitchell, 330 Ark. 338, 343, 954 S.W.2d 907, 909 (1997) (citing Parish v. Pitts, 244 Ark. 1239, 1252, 429 S.W.2d 45, 52 (1968) (superseded by statute on other grounds)). It is well-settled that [p]recedent governs until it gives a result so patently wrong, so manifestly unjust, that a break becomes unavoidable. Mitchell, 330 Ark. at 343, 954 S.W.2d at 909 (quoting Parish, 244 Ark. at 1252, 429 S.W.2d 45). Our test is whether adherence to the rule would result in great injury or injustice. Mitchell, 330 Ark. at 343, 954 S.W.2d at 909 (quoting Independence Fed. Bank v. Paine Webber, 302 Ark. 324, 331, 789 S.W.2d 725, 730 (1990)). We find that the case at bar does not warrant a break from precedent. Moreover, contrary to appellant's assertion, Arkansas public policy does not favor stacking. In Clampit , we explained the public-policy rationale supporting our decision. For example, if an insurer is required to insure against a risk of an undesignated but owned vehicle, it is required to insure against risks that it is unaware of and unable to charge a premium for. Clampit, 309 Ark. at 109, 828 S.W.2d at 594-95. Of course, if more coverage is desired, an insured remains free to supplement coverage in an existing policy by paying additional premiums calculated to insure against the increasing covered risks. Given that the rights at issue are governed by statute and not common law, we also heed legislative intent. Compare Shannon v. Wilson, 329 Ark. 143, 947 S.W.2d 349 (1997) (explaining that the field of common law is not primarily the legislature's province but the court's and that the court is free to amend the common law and not bound to adhere to outmoded holdings pending legislative action). Although aware of our judicial decisions, including Clampit , the legislature has not amended the governing statutes to permit stacking. In fact, as appellee notes, the General Assembly's silence over a long period gives rise to an arguable inference of acquiescence or passive approval to the court's construction of the statute. Chapman v. Alexander, 307 Ark. 87, 90, 817 S.W.2d 425, 427 (1991). Appellant's reliance on authority from other jurisdictions is equally unpersuasive. Not only is the cited case law not controlling on this court but, in many cases, it is clearly distinguishable. Other states' decisions turned upon specific language in the state's statute authorizing stacking or an expressed legislative intent favoring stacking. In any event, we addressed the issue of foreign authority directly in Clampit and commented that sheer numbers of decisions of other jurisdictions one way or the other on any given question are of course not controlling on this Court. Clampit, 309 Ark. at 111, 828 S.W.2d at 595-96. Here, State Farm priced its premiums based on single-car coverage, and appellant's policy was limited by an accepted, clear exclusion. Consequently, State Farm asserts that its unambiguous policy should not be construed to provide coverage for a plainly-excluded risk, for which no premium was paid. See, e.g., Baskette v. Union Life Ins. Co., 9 Ark.App. 34, 652 S.W.2d 635 (1983). Indeed, we have held that parties are free to contract on terms, and so long as the policy language is clear and not violative of the state law, we shall enforce the agreement as written. See Pardon v. Southern Farm Bureau Casualty Ins. Co., 315 Ark. 537, 868 S.W.2d 468 (1994). In Youngman v. State Farm Mut. Auto. Ins. Co., 334 Ark. 73, 971 S.W.2d 248 (1998), we discussed a simple rule for analyzing almost any stacking problem: Read the Statute and Read the Policy! Youngman, 334 Ark. at 79, 971 S.W.2d at 251 (citing State Farm Mut. Auto. Ins. Co. v. Beavers, 321 Ark. 292, 901 S.W.2d 13 (1995)) (quoting Douglass and Telegadis, Stacking of Uninsured and Underinsured Motor Vehicle Coverages, 24 U. RICH. L.REV. 87 (Fall 1989)). Applying the same principle here, we cannot say that the trial court erred by concluding that State Farm's unambiguous owned-but-not-insured exclusion was valid. Based upon the controlling authority of Clampit , the inapplicability of Ross , and the absence of any legislative intent enabling stacking, there are no grounds justifying reversal of the trial court's grant of summary judgment. Further, we conclude that the instant facts do not yield a result so patently wrong and so manifestly unjust that a departure from our precedent is unavoidable. Viewing the evidence in the light most favorable to Chamberlin, resolving any doubts against State Farm, and acknowledging that there remain no genuine issues of material fact, we hold that the trial court did not err in finding that appellee was entitled to a judgment as a matter of law. Affirmed. GLAZE and IMBER, JJ., not participating. Special Justices KEITH WOOD and G. WILLIAM LAVENDER, join. CORBIN, THORNTON, and HANNAH, JJ., dissent.