Opinion ID: 888089
Heading Depth: 1
Heading Rank: 4

Heading: The Act (2001) versus the Act (2005)

Text: ¶ 14 As a preliminary matter, we must determine whether to apply the 2001 version of the Act or the amended 2005 version. We determine the substantive rights between the parties according to the law in effect at the date of injury. Anderson v. Werner Enterprises, Inc., 1998 MT 333, ¶ 28, 292 Mont. 284, ¶ 28, 972 P.2d 806, ¶ 28. The Boettchers urge us to apply the 2001 version of the Act, because the claims handling practices in question occurred before the Legislature amended the Act on March 18, 2005. ¶ 15 MIGA concedes that the 2001 version of the Act constituted the law at the time of Boettcher's underlying injury related to his fall from the loft. MIGA argues nevertheless that the 2005 version of the Act should govern any potential third party claims that the Boettchers may have against MIGA. MIGA bases its contention on the fact that the underlying claim settled on October 6, 2005, when the parties executed an assignment of claims document. MIGA contends that the October settlement signified the proper time for filing a third party action under § 33-18-242(6), MCA, and, therefore, the law in effect at the time that the claims could be filed under the UTPA should control which version of the Act applies to the Boettchers' claims. ¶ 16 MIGA's position disregards our longstanding rule, however, to apply the law in effect at the date of the injury. Anderson, ¶ 28. For purposes of the Boettchers' potential common law bad faith claim, the alleged tortious conduct began when MIGA, Western Guaranty, and Reed handled and supposedly unreasonably rejected the Boettchers' first demand for payment. All elements of the tort existed upon the alleged unreasonable refusal to pay. Brewington v. Employers Fire Insurance Co., 1999 MT 312, ¶ 29, 297 Mont. 243, ¶ 29, 992 P.2d 237, ¶ 29. ¶ 17 Similar reasoning applies to the Boettchers' potential statutory bad faith claim pursuant to the UTPA. The injuries in this case, if any, took place when MIGA, Western Guaranty, and Reed failed to handle the Boettchers' claims in a reasonable manner. Section 33-18-242(1), MCA. This first alleged failure took place when the Boettchers made a demand for payment from MIGA before the Legislature amended the Act in 2005. Any claim processing restrictions imposed under § 33-18-242(6)(b), MCA, do not alter the fact that the Boettchers' alleged injuries in this case occurred when MIGA, Western Guaranty, and Reed handled and allegedly unreasonably rejected the Boettchers' demands for payment. These alleged injuries occurred when the 2001 Act controlled. ¶ 18 The Boettchers further contend that § 33-10-110, MCA, as amended in 2005, contains no express provision on retroactivity and, therefore, the amended statute can be applied only prospectively. We will not apply a statute retroactively unless the Legislature clearly expresses its intention of such retroactive application. Anderson, ¶ 28. Nothing in the face of the 2005 version of § 33-10-110, MCA, indicates that the Legislature intended for the amended statute to be applied retroactively. We apply the 2001 version of the Act in light of the fact that the Boettchers' alleged injuries occurred before the Legislature enacted the 2005 amendments.