Notice Requirement – Insurance Policy – Underinsured Motorist

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WI Supreme Court

Case Name: Robert H Shugarts, II, et al., v. Dennis M. Mohr

Case No.: 2018 WI 27

Focus: Notice Requirement – Insurance Policy – Underinsured Motorist

The petitioners, Robert and Judith Shugarts, seek review of a published court of appeals decision affirming the circuit court’s grant of summary judgment to the Shugarts’ underinsured motorist (UIM) carrier. They contend that the court of appeals erred in concluding that they failed to provide Allstate Property and Casualty Company (Allstate) with timely notice of their UIM claim and that they failed to rebut the presumption that Allstate was prejudiced by the untimely notice.

Specifically, the Shugarts assert that the court of appeals mistakenly interpreted the UIM policy’s “proof of claim” provision as a “notice of accident” provision. The Shugarts submit that instead it is the tender of the tortfeasor’s underlying policy limits, not the accident itself, that triggers the notice provision in the UIM policy. They further argue that if the proof of claim was not timely filed, then Allstate was not prejudiced by the untimely notice.

We conclude that the operative event triggering the notice requirement in the Shugarts’ UIM policy is the tender of the tortfeasor’s underlying policy limit. We further conclude that Wis. Stat. § 631.81(1) (2009-10) does not apply to the UIM policy provision at issue. Consequently, we determine that the Shugarts provided Allstate with timely proof of their UIM claim as required by the policy language. Because we determine that the Shugarts’ proof of claim was timely filed, we need not address whether Allstate was prejudiced. Accordingly, we reverse the court of appeals and remand to the circuit court for further proceedings.

Reversed and Remanded

Concur:

Dissent:

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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.