Court Opinion

ID: 9513946
Source: CourtListenerOpinion
Date Created: 2023-08-06 22:42:35.40942+00
Date Added: 2024-06-11T09:06:06.438067
License: Public Domain

MARING, Justice,
dissenting.
[¶ 26] I respectfully dissent.
[V27] Under N.D.C.C. § 26.1-41-17, which was repealed effective August 1, 2005, a basic no-fault insurer could recover no-fault benefits paid to an injured person from “the motor vehicle liability insurer of a secured person.” One of our basic rules of construction states that the “[code’s] provisions ... are to be construed liberally, with a view to effecting its objects and to promoting justice.” N.D.C.C. § 1-02-01.
[¶ 28] The Auto Accident Reparations Act defines “secured person” as “the owner, operator, or occupant of a secured motor vehicle, ...” N.D.C.C. §26.1-41-01(20). A “secured motor vehicle” means “a motor vehicle with respect to which the security required by this chapter was in effect at the time of its involvement in the accident resulting in accidental bodily injury.” N.D.C.C. § 26.1-41-01(19) (emphasis added). The “security required by this chapter,” ch. 26.1-41, the Auto Reparations Act, is set forth specifically as follows:
1. The owner of a motor vehicle required to be registered in this state, or the owner of a motor vehicle operated in this state by the owner or with the owner’s permission, shall continuously provide with respect to the motor vehicle during the period in which operation is contemplated in this state security for payment of basic no-fault benefits and the liabilities covered under the motor vehicle liability insurance.
N.D.C.C. § 26.1-41-02(1).
[¶ 29] Plains Marketing was the owner of the semi-truck, which was insured at the time of this accident for basic no-fault benefits and liability by Zurich-American Insurance. Plains Marketing was a “secured person” and its semi-truck was a “secured motor vehicle” under the Auto Accident Reparations Act.
[¶ 30] Under the equitable allocation provision the amount of recovery by Farmers Union may not exceed the “limits of liability of the secured person’s motor vehicle liability insurance policy or other security. ...” N.D.C.C. § 26.1-41-17. Plains Marketing’s primary motor vehicle liability insurance policy provided by Zurich-American Insurance paid its policy limits in settlement of Taylor’s claims. Ordinarily, this would mean that Farmers Union *260would not be able to recover the no-fault benefits it paid. However, Plains Marketing also carried an excess liability policy with AEGIS. Plains Marketing paid part of the settlement with the injured party, and AEGIS indemnified Plains Marketing. AEGIS does not claim that its policy limits were thereby exhausted; therefore, the limits of liability coverage have not been reached.
[¶ 31] “Our no-fault statutes are intended to provide adequate compensation to victims of motor vehicle accidents, and to avoid protracted litigation over issues of fault or causation by removing the bulk of motor vehicle accidents from the tort system.” Haff v. Hettich, 1999 ND 94, ¶ 33, 593 N.W.2d 383 (citations omitted). In light of the purpose of our no-fault law, it follows that “equitable allocation is a purely statutory remedy between insurers” and “creates a right of equitable allocation directly against the tortfeasor’s liability insurer through agreement or intercompany arbitration.” Isaac v. State Farm Mut. Auto. Ins. Co., 547 N.W.2d 548, 550 (N.D. 1996) (quoting Burgener v. Bushaw, 545 N.W.2d 163, 166-167 (N.D.1996)). I am of the opinion that the majority’s interpretation frustrates the public policy and purpose behind the equitable allocation theory. Courts should construe statutes to effectuate the legislative purpose which prompted their enactment.
[¶ 32] The damages covered by basic no-fault benefits are damages that would be recoverable from the tortfeasor and covered under the tortfeasor’s liability coverage. After the exhaustion of the Zurich-American Insurance policy limits, AEGIS would be liable for these damages, but for our no-fault law. Our no-fault law established a right of a no-fault carrier to seek reimbursement of basic no-fault benefits from a liability carrier, instead of a right of subrogation. Isaac, 547 N.W.2d at 550.
[¶ 33] In this case, the motor vehicle owner, Plains Marketing, had in effect at the time of the accident a policy of motor vehicle liability insurance or “security” with respect to the motor vehicle involved in the accident which provided basic no-fault benefits. Plains Marketing was a “secured person” at the time of the accident. The AEGIS policy provided motor vehicle liability coverage in excess of the motor vehicle liability coverage provided under the Zurich-American Insurance policy. I would interpret “the motor vehicle liability insurer of a secured person” under N.D.C.C. § 26.1-41-17 to include the AEGIS policy as well as the Zurich-American Insurance policy. Under the public policy at the time of the accident, I cannot see why Farmers Union should not be able to recover no-fault benefits it paid from AEGIS’ motor vehicle liability coverage.
[¶ 34] I would affirm the judgment of the district court.
[¶ 35] MARY MUEHLEN MARING, J.