2003AP002482 State Farm Mutual Insurance Company v. Bailey

By: dmc-admin//December 5, 2005//

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However, we also conclude that clause 2.a. is not ambiguous in the context of the entire policy and that clause, therefore, reduces State Farm’s UIM liability limits of $50,000 by the $25,000 payment on behalf of Levy, the UIM driver in whose car plaintiff was a passenger.

“Finally, we conclude that clause 2.b. is not prohibited by § 632.32(5)(i). Because State Farm may properly consider the payment on behalf of Regala under 2.b., as well as the payment from Levy, State Farm is obligated to pay for Bailey’s damages from bodily injury that exceed $62,500 up to the maximum of its reduced limits of liability — $25,000. On remand, the court shall enter a declaratory judgment consistent with this paragraph.”

Affirmed in part, reversed in part and remanded.

Recommended for publication in the official reports.

Dist I, Milwaukee County Dugan, J., Vergeront, J.

Attorneys:

For Appellant: Thomas E. Goss Jr., Milwaukee

For Respondent: Burton A. Strnad, Milwaukee

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