Court Opinion

ID: 9565603
Source: CourtListenerOpinion
Date Created: 2023-08-21 19:24:19.084421+00
Date Added: 2024-06-11T09:19:46.755361
License: Public Domain

SHORT, J.,
(dissenting):
I respectfully dissent.
The majority opinion distinguishes the facts and circumstances of this case from those in this court’s opinion in McDowell v. Travelers Property & Casualty Company, 357 S.C. 118, 590 S.E.2d 514 (Ct.App.2003). I conclude McDowell applies and would reverse the trial court’s reformation of the parties’ contract.
In McDowell, this court found a meaningful offer despite the failure of the offer form to meet the Wannamaker test. Id. See State Farm Mut. Auto. Ins. Co. v. Wannamaker, 291 S.C. 518, 521, 354 S.E.2d 555, 556 (1987) (adopting a four-part test for determining the sufficiency of an offer of optional UM and UIM). The court noted that failure to meet the statutory requirements “does not necessarily require reformation of the policy. Rather, the insurer bears the burden of establishing it made a meaning offer.... ” McDowell, 357 S.C. at 123, 590 S.E.2d at 516. I find the insurer met that burden in this case.
In the typical case, the insured is the party seeking reformation. This case presents the more unusual circumstance of the insured arguing the offer was meaningful and a third party seeking reformation. Under the parties’ payment agreement, Tyco is essentially self-insured for the first $500,000 of a claim. Gerald Goetz, the Vice President of Risk Management for Tyco, clarified the valid business purpose for denying optional UM and UIM. Goetz explained that Tyco would not have bought additional UM and UIM because doing so would expose it to additional liability. Gerald Goetz assert*476ed he was knowledgeable and aware of his options when declining additional UM and UIM. Goetz had worked in the insurance industry as a risk manager for over thirty years and had extensive education relating to risk management.
I would find Goetz made a knowing and informed decision in rejecting the optional coverage. See id. at 124-25, 590 S.E.2d at 517 (finding the risk manager made a knowing and informed decision). Furthermore, like the court in McDowell, I would consider the arrangement between the contracting parties in this case and conclude the insurer met its burden of proving it made a meaningful offer to Tyco. Moreover, Goetz’s sophistication is a factor to consider in determining whether Tyco received a meaningful offer. See Anders v. S.C. Farm Bureau Mut. Ins. Co., 307 S.C. 371, 376, 415 S.E.2d 406, 409 (Ct.App.1992) (finding the sophistication of the insured is a factor that may be considered in determining if an offer of optional insurance is meaningful).
Although this offer may not have been meaningful to the typical insured, under these circumstances, considering the sophistication of the insured, I find the offer meaningful. See Croft v. Old Republic Ins. Co., 365 S.C. 402, 420, 618 S.E.2d 909, 918 (2005) (stating “[wjhether a meaningful offer was made depends on the facts and circumstances of a particular case”). Accordingly, I would reverse.