Opinion ID: 2690414
Heading Depth: 2
Heading Rank: 3

Heading: Snyder and This Insurance Contract

Text: {¶ 10} In Snyder, this court stated that “a policy provision limiting the insured’s recovery of uninsured- or underinsured-motorist benefits to amounts which the insured is ‘legally entitled to recover’ is enforceable, and its effect will be to preclude recovery when the tortfeasor is immune under R.C. Chapter 2744.” 114 Ohio St.3d 239, 2007-Ohio-4004, 871 N.E.2d 574, at ¶ 29. The court also stated that “[o]ur ruling here, of course, does not prevent insurers from responding to consumer demand by offering uninsured-motorist coverage without precluding recovery because of a tortfeasor’s immunity.” Id. at ¶ 33. The UM endorsement in this case does just that. {¶ 11} The UM endorsement provides that “uninsured motor vehicle” includes a motor vehicle whose owner or operator “has immunity under the Ohio Political Subdivision Tort Liability Law [OPSTLL].” But Erie Insurance claims that language elsewhere in the endorsement that Erie will pay damages that the insured is “legally entitled to recover” makes Snyder dispositive, as that phrase mirrors the language relied upon in Snyder to preclude coverage. We do not agree. We 3 SUPREME COURT OF OHIO conclude that the language of the definitional provision controls, and it plainly and unambiguously provides UM coverage when an insured is injured by an owner or operator who is immune under the OPSTLL. {¶ 12} The critical distinction between Snyder and this case is that in Snyder, the plaintiff relied on a statutory definition of “uninsured motor vehicle.” Here, the Marusas are not constrained by a statutory definition. This court’s decision, therefore, is not controlled by Snyder. Twice at oral argument, Erie Insurance stated that it included the definitional provision because consumers would otherwise not know what an uninsured motorist is. It is interesting that Erie Insurance did not consider it necessary or advisable to similarly define “legally entitled to recover” to ensure that consumers would be aware of the potential impact of the Snyder decision. {¶ 13} Given our conclusion concerning the definition of “uninsured motor vehicle” contained in this insurance contract, we cannot conclude, as the Snyder court did when confronted with language from outside the insurance contract, that the phrase “legally entitled to recover” precludes uninsured-motorist coverage when the owner or operator is immune under the OPSTLL. Two courts of appeals have recently reached the same conclusion. See Thom v. Perkins Twp., 6th Dist. No. E- 10-069, 2012-Ohio-1568, 2012 WL 1154578; Payton v. Peskins, 12th Dist. No. CA2010-10-022, 2011-Ohio-3905, 2011 WL 3433027. To give effect to the policy definition of an “uninsured motor vehicle,” it is necessary to consider it an exception to the limiting phrase “legally entitled to recover,” which the Snyder court foresaw as a possibility. 114 Ohio St.3d 239, 2007-Ohio-4004, 871 N.E.2d 574, at ¶ 33. {¶ 14} Furthermore, the definitional provision is specific and the “legally entitled to recover” provision is general. When faced with provisions that are arguably in conflict, we apply the more specific provision. Troyer v. Janis, 132 Ohio St.3d 229, 2012-Ohio-2406, 971 N.E.2d 862, ¶ 15. See Mut. Life Ins. Co. of New York v. Hill, 193 U.S. 551, 558, 24 S.Ct. 538, 48 L.Ed. 788 (1904). 4 January Term, 2013