Insurance Coverage

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WI Court of Appeals – District III

Case Name: James R. Hartwig et al v. American Family Mutual Insurance Company

Case No.: 2016AP58

Officials: Stark, P.J., Hruz and Seidl, JJ

Focus: Insurance Coverage

American Family Mutual Insurance Company appeals a judgment entered in this insurance coverage dispute arising from a single-car automobile accident in which James Hartwig was injured while a passenger in the vehicle. The vehicle was owned by Derek Elliott, was being driven by Andrew Juza, and was insured by American Family. There were two claims at issue, both of which were resolved by summary judgment: (1) liability coverage; and (2) underinsured motorist (UIM) coverage. In addition, the circuit court also made evidentiary rulings in anticipation of a trial that was ultimately not held. We conclude the circuit court erred by granting summary judgment on Hartwig’s claim for liability coverage because there is a genuine issue of material fact regarding whether the vehicle’s owner placed a restriction on the driver’s use of the vehicle, which restriction was being violated at the time of the accident. We also conclude the circuit court erred by placing the burden upon American Family to prove that Juza was not using the vehicle for a permitted purpose at the time of the accident. Next, we conclude the circuit court erred by sua sponte granting summary judgment in Hartwig’s favor on his claim for UIM benefits without sufficient notice to American Family or opportunity for discovery on that claim. Finally, we affirm the circuit court’s evidentiary ruling excluding evidence of Juza’s and Hartwig’s respective levels of intoxication at the time of the accident.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.