Opinion ID: 1383469
Heading Depth: 1
Heading Rank: 3

Heading: State Farm as Party Defendant

Text: The first issue we address is whether the circuit court erred in dismissing State Farm as a party defendant. We have stated: A plaintiff is not precluded under W.Va. Code, 33-6-31(d) (1988), from suing an uninsured/underinsured insurance carrier if the plaintiff has settled with the tortfeasor's liability carrier for the full amount of the policy and obtained from the uninsured/underinsured carrier a waiver of its right of subrogation against the tortfeasor. Syllabus Point 4, Postlethwait v. Boston Old Colony Insurance Company, 189 W.Va. 532, 432 S.E.2d 802 (1993). [1] Shortly after our decision in Postlethwait, we examined the issue of direct action by a policyholder against an underinsured motorist insurance carrier and we stated: When a direct action against an uninsured or underinsured motorist carrier is pursued, that action sounds in contract and is governed by the statute of limitations applicable to contract actions. Where a plaintiff pursues an action to recover uninsured or underinsured motorist benefits, that action may be directed against the uninsured or underinsured carrier and does not require an action against the tortfeasor with whom the plaintiff has already settled for liability limits with the insurer's consent and waiver of subrogation rights. Syllabus Point 2, Plumley v. May, 189 W.Va. 734, 434 S.E.2d 406 (1993). In this case, Jones settled with Sanger for Sanger's policy limits, and released Sanger. The settlement was made with the consent of State Farm, and State Farm waived its right of subrogation against Sanger. The plaintiff now seeks to recover underinsured motorist benefits from State Farm, his father's underinsured motorist insurance carrier, because the insurance company provided coverage for the vehicle in which he was a passenger. The requirements of Postlethwait and Plumley being satisfied, the plaintiff may bring an action directly against the underinsured motorist insurance carrier, State Farm. The circuit court was therefore in error to dismiss State Farm as a party defendant.