Opinion ID: 76866
Heading Depth: 2
Heading Rank: 2

Heading: Bench Trial as to Reformation Issue

Text: 35 At the conclusion of the bench trial, the district court issued findings of fact and conclusions of law. The district court found that the two persons directly responsible for drafting the policy, Dan Sobczynski of Ford and Martin Taft of Michigan Mutual, both unequivocally testified that it was their intent not to provide coverage to retail lessees and that the auto supplement was meant to provide coverage only to certain vehicles leased or loaned to current and former Ford employees. The district court found their testimony to be credible and convincing, and concluded that Michigan Mutual satisfied its burden of introducing clear and convincing evidence that the contracting parties, Ford and Michigan Mutual, did not intend for the policy to provide any coverage to retail lessees. Accordingly, the district court reformed the policy between Michigan Mutual and Ford to exclude any medical payment and uninsured motorist coverage to retail lessees. 36 The district court also rejected the plaintiffs' alternative argument that was based on Florida statute § 627.727. The plaintiffs contended (1) that § 627.727 requires that all insureds make a knowing rejection of uninsured motorist coverage; (2) that Ford never rejected uninsured motorist coverage for its vehicles in its retail lease program; and thus (3) that Florida law forbade Michigan Mutual from denying uninsured motorist coverage to the plaintiffs. 37 Rejecting this alternative argument, the district court reasoned that once the policy is reformed so as not to cover the plaintiffs as insureds, there is no liability coverage for vehicles in the lease program or for the retail lessees, and therefore no underlying offer of coverage to the plaintiffs that must include uninsured motorist coverage. The district court, however, did not specifically address the plaintiffs' contention that because Michigan Mutual failed to offer uninsured motorist coverage to Ford for vehicles in its retail lease program, the policy could not be reformed to exclude coverage from plaintiffs in their capacity as occupants of Ford owned but leased vehicles.