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Klein v. United States Fidelity & Guaranty Co.

Citations: 451 N.W.2d 901; 1990 Minn. App. LEXIS 212; 1990 WL 16605Docket: C5-89-1771

Court: Court of Appeals of Minnesota; February 27, 1990; Minnesota; State Appellate Court

Narrative Opinion Summary

The case involves a respondent who was injured while changing a tire on his wife's pickup truck and sought uninsured motorist benefits from United States Fidelity and Guaranty Company (USF&G), despite having coverage from Farm Bureau Mutual Insurance Company (Farm Bureau) for the same vehicle. The primary legal issue was whether the respondent was 'occupying' the vehicle at the time of the injury, as defined under Minn. Stat. 65B.49, subd. 3a(5). The trial court concluded that the respondent was not occupying the vehicle, thus allowing him to choose coverage from either insurance company. However, the appellate court reversed this decision, adopting a broader interpretation of 'occupying' that included the respondent's actions and proximity to the vehicle. The court relied on precedents where 'occupying' was interpreted to include maintaining a close geographic relationship with the vehicle. Consequently, the respondent was deemed to be occupying the pickup at the time of the injury, requiring him to claim benefits from Farm Bureau's policy. The appellate court's decision underscores the importance of interpreting statutory language in the context of the insured's relationship with the vehicle at the time of the accident.

Legal Issues Addressed

Interpretation of 'Occupying' Under Minn. Stat. 65B.49

Application: The court interpreted the term 'occupying' to include situations where the person maintains a close geographic relationship with the vehicle, influencing the determination of which insurance policy applies.

Reasoning: The lack of a statutory definition for 'occupying' in the Minnesota No-Fault Act leads to the interpretation based on court precedents.

No-Fault Insurance Coverage Selection

Application: The statute allows an injured party to select coverage from any policy under which they are insured if they are not 'occupying' their vehicle at the time of injury.

Reasoning: The statute specifies that if the injured person is occupying a vehicle at the time of an accident, their coverage limit is determined by that vehicle's policy; if not, they may select any coverage limit from any policy under which they are insured.

Reversal of Trial Court's Occupancy Determination

Application: The appellate court reversed the trial court's determination that the respondent was not 'occupying' his vehicle, thus affecting his eligibility for uninsured motorist benefits.

Reasoning: The trial court's conclusion that Klein was not 'occupying' his pickup was incorrect. Consequently, he cannot claim uninsured motorist benefits from USF&G and must seek recovery from Farm Bureau.