Brunson v. Ward, 2001 WI 89, 245 Wis. 2d 163

Summary

The Wisconsin Supreme Court held that a $25,000 underinsured motorist policy issued after a statutory increase in minimum UIM coverage was automatically treated as providing $50,000 in coverage under the policy's conformance-to-law clause and Wisconsin statutes. Because the policy was not illusory at the statutory coverage level and the tortfeasor's liability limits exceeded the UIM limits, the court affirmed dismissal of Progressive from the action and rejected the Meyer remedy. The court reversed the award of costs and attorney's fees, holding that Brunson's motion for reconsideration was not frivolous.

Holdings

1. A UIM policy that listed $25,000 in coverage but was issued when Wis. Stat. § 632.32(4m)(d) required at least $50,000 per person must be treated as providing the statutory $50,000 minimum because of the policy's conformance-to-law clause and Wis. Stat. § 631.15(3m).
2. The Meyer remedy for an illusory $25,000 UIM policy does not apply when the policy is automatically amended to provide the statutory $50,000 minimum.
3. Progressive was properly dismissed because Ward was not an underinsured motorist under the policy: his $100,000 liability limits exceeded Brunson's treated-as-effective $50,000 UIM limits.
4. Brunson's motion for reconsideration was not frivolous because the legal issues concerning statutory reformation and the continued applicability of Meyer were sufficiently unsettled to provide a reasonable basis for the motion.

Questions Presented

1. Whether a UIM policy issued after the enactment of Wis. Stat. § 632.32(4m)(d), but listing lower limits and containing a conformance-to-law clause, must be treated as providing the statutory minimum limits.
2. Whether the judicially created Meyer remedy for an illusory $25,000 UIM policy remained available after the statutory $50,000 UIM minimum took effect.
3. Whether Ward qualified as an underinsured motorist under the Progressive policy.
4. Whether Brunson's motion for reconsideration was frivolous such that Progressive was entitled to costs and attorney's fees.

Disposition

reversed