Progressive Northwestern Insurance Company v. John R. Edwards, et al.

Summary

The United States District Court for the District of Kansas grants Progressive Northwestern Insurance Company's motion for summary judgment and denies the Edwards' cross-motion in a declaratory judgment action concerning underinsured motorist benefits. Applying Kansas law, the court holds that K.S.A. § 40-284(b) and the policy require the Edwards' $300,000 UIM limit to be reduced by the $250,000 they recovered from the tortfeasor. The court concludes that Progressive's obligation is therefore limited to $50,000.

Holdings

1. Kansas Statutes Annotated section 40-284(b), as interpreted by O'Donoghue v. Farm Bureau Mutual Insurance Co., does not permit an insured to recover the entire UIM policy limit in addition to amounts recovered from the tortfeasor. The Edwards' $300,000 UIM limit was reduced by their $250,000 tortfeasor recovery, leaving $50,000 in UIM benefits.
2. The Progressive policy provision reducing UIM limits by amounts paid by or on behalf of the legally responsible tortfeasor is consistent with Kansas Statutes Annotated section 40-284(b) and controls the amount of benefits payable.
3. Progressive was entitled to summary judgment, and the Edwards were not, because the material facts were undisputed and governing Kansas law limited the Edwards' additional recovery to $50,000.

Questions Presented

1. Whether Kansas Statutes Annotated section 40-284(b) permits the insureds to recover the full $300,000 UIM policy limit in addition to the $250,000 recovered from the tortfeasor's insurer.
2. Whether the Progressive policy's reduction of UIM benefits by amounts recovered from the tortfeasor is consistent with Kansas law.
3. Whether either party was entitled to summary judgment.

Disposition

other