Opinion ID: 1110221
Heading Depth: 2
Heading Rank: 2

Heading: whether the trial court erred in pro-rating the damages between usf & g and john deere.

Text: ¶ 14. We employ a de novo standard of review when reviewing a trial court's grant of summary judgment. Leslie v. City of Biloxi, 758 So.2d 430, 431 (Miss.2000). ¶ 15. The circuit court granted John Deere's counter motion for summary judgment, finding that the two policies' other insurance clauses were in conflict and mutually repugnant and that [e]nforcement of the `other insurance' clauses contained in both the USF & G and [John Deere] insurance contracts as written, [would] have the effect of having no coverage for the plaintiff. In addition to the identical other insurance clauses, both policies contained identical pro rata clauses which provided that benefits in such cases involving two policies should be pro rated according to the coverage limits of each policy. ¶ 16. The longstanding rule in Mississippi is that the insurer for the owner of the vehicle involved in the accident is the primary insurer. State Farm Mut. Auto. Ins. Co. v. Universal Underwriters Ins. Co., 797 So.2d 981, 983 (Miss.2001); Travelers Indem. Co. v. Chappell, 246 So.2d 498, 505 (Miss.1971). At the time of the accident, Bert lived in Natchez, Mississippi, and was part owner of the Natchez dealership. It is undisputed that Bert and Al were going to the Natchez dealership in a car owned by the Natchez dealership when the accident occurred. It is also undisputed that on the date of the accident, the Natchez dealership was listed as a named insured under a commercial automobile liability insurance policy issued by John Deere and that the vehicle was a covered auto under the John Deere policy. ¶ 17. On the date of the accident, USF & G insured the Jackson dealership and Al, a named insured, under a commercial automobile liability policy. It is undisputed that the vehicle involved in the accident was not owned by the Jackson dealership. USF & G would be liable for any judgment in excess of John Deere's limits of coverage; however, the damages awarded the Easts did not exceed John Deere's limits of coverage. ¶ 18. While the other insurance clauses are identical, they do not conflict. The other insurance clause simply establishes the order of priority of payments. John Deere is first in the paying line of uninsured motorist benefits since its policy insures the Natchez dealership, the owner of the vehicle involved in the accident. See State Farm Mut. Auto. Ins. Co. v. Universal Underwriters Ins. Co., 601 F.Supp. 286, 289-90 (S.D.Miss.1984) (under Travelers Indem. Co. v. Chappell, 246 So.2d 498, 505 (Miss.1971), the insurance policy issued to the owner of the vehicle provides primary coverage). This precedent is consistent with authorities in other jurisdictions. See Hlasnick v. Federated Mut. Ins. Co., 136 N.C.App. 320, 524 S.E.2d 386, 391 (2000), aff'd in part and review improvidently allowed in part, 353 N.C. 240, 539 S.E.2d 274 (2000) (Pro rata coverage is not applicable because the two policies by their own express terms, did not provide coverage on the same basis.). See also Hamilton Mut. Ins. Co. v. United States Fid. & Guar. Co., 926 S.W.2d 466 (Ky.Ct.App.1996); Swank v. Chrysler Ins. Corp., 282 Mont. 376, 938 P.2d 631 (1997). ¶ 19. Justice Diaz, in his dissent, argues that Chappell is distinguishable from the case sub judice because Chappell involved a general liability policy, and uninsured motorist policies cannot be considered secondary or primary. However, in Dixie Ins. Co. v. State Farm Mut. Auto. Ins. Co., 614 So.2d 918, 922 (Miss.1992), a case involving uninsured motorist coverage, we held that the trial court correctly decided the host driver's uninsured motorist insurer was the primary insurer. See 1 Alan I. Widiss, Uninsured and Underinsured Motorist Insurance § 13.3, at 725 (Rev.2d ed.1999). One reason offered for this rule is to require primary insurers to pay what is mandated pursuant to the provisions of its policy and required by statute. See Mississippi Farm Bureau Mut. Ins. Co. v. Garrett, 487 So.2d 1320, 1322 (Miss.1986). See also Preferred Risk Ins. Co. v. Insurance Co. of North America, 824 F.Supp. 614, 619 (S.D.Miss.1993) (applying Mississippi law) (holding that secondary insurer would incur liability pursuant to the provisions of its policy only as a provider of excess coverage and is not required to share pro rata responsibility for [the insured's] injuries). ¶ 20. We find that the circuit court committed reversible error in granting summary judgment to John Deere and denying USF & G's motion for summary judgment. This finding moots the issue of the imposition of the statutory penalty against USF & G. The post-judgment interest awarded by the circuit court should be paid by John Deere, as USF & G was successful in its appeal.