Opinion ID: 2012778
Heading Depth: 1
Heading Rank: 3

Heading: Effect of Default Under Sec. 327.22, Stats.

Text: On Saturday, April 26, 1957, counsel for plaintiffs, pursuant to sec. 327.22, Stats., [1] served on defendants' counsel a notice to admit or refuse to admit that the policy limits of Milwaukee Auto's policy issued to Smith, and in effect on the day of the accident, were $10,000 per person, and $20,000 per accident. One week thereafter, May 3, 1957, defendants' counsel served a written refusal to admit such coverage limits and attached thereto an affidavit of an employee of Milwaukee Auto stating that the policy limits for bodily injury were $5,000 for each person and $10,000 for each accident. During the course of the trial, Hain testified with respect to coverage: We [Milwaukee Auto] had medical pay up to $500; we had liability and property damage of 5/10 and 5. Later he was asked to explain such answer and he then further testified, 5/10 and 5 means that there is a limit of $5,000 for any one individual; $10,000 for any one accident, which may involve two or more people; and $5,000 limit on the policy for any property damage incurred. While plaintiffs' counsel objected to this line of questioning, he did not ground the objection on any claim that Milwaukee Auto was precluded from showing the true policy limits by reason of being in default under sec. 327.22, Stats. Plaintiffs now contend that because defendants' refusal to admit was two days late under sec. 327.22, Stats., Milwaukee Auto is thereby precluded from asserting that any possible liability is restricted to its $5,000 policy limit. On this appeal plaintiffs not only are contending for judgment for the $5,500 damages found by the jury, but, in addition, the amount of Ronald's medical expenses previously paid by Milwaukee Auto under the medical-payments coverage of the policy plus certain travel expenses in making trips to Eau Claire for the purpose of medical treatment. Plaintiffs' claim for double payment of medical expenses is based on Severson v. Milwaukee Automobile Ins. Co. (1953), 265 Wis. 488, 61 N. W. (2d). 872. It is our determination that plaintiffs waived any right to rely on Milwaukee Auto's default under sec. 327.22, Stats., by not stating such default as an objection to the questions put to Hain regarding the coverage limits of the policy. If such an objection had been made, counsel for Milwaukee Auto might then have presented evidence to the court establishing good cause for the two days' delay in serving the refusal to admit. Sub. (5) of sec. 327.22 expressly authorizes the trial court to relieve a party from the consequences of default upon a showing of good cause. Therefore, if any judgment is hereafter entered against Milwaukee Auto in this action, it must be limited to $5,000 plus costs and disbursements. This is because the evidence is uncontroverted that its policy coverage limit for bodily injury to one person is $5,000.