Larry Mickow v. AAA Insurance MemberSelect Insurance Company (mem. dec.)

Citation: Not availableDocket: 19A-CT-1546

Court: Indiana Court of Appeals; March 10, 2020; Indiana; State Appellate Court

Original Court Document: View Document

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Larry Mickow filed a lawsuit against his insurer, MemberSelect Insurance Company, claiming breach of contract and bad faith regarding his underinsured motorist (UIM) coverage following a motor vehicle accident on August 12, 2016, caused by Amanda Faye Ledger. Mickow and his passenger sustained injuries, resulting in medical expenses and lost wages, with Ledger's insurers paying $50,000. Mickow, who had a policy with MemberSelect, received $25,000 under medical payments coverage on January 5, 2018, and subsequently demanded $50,000 under UIM coverage on July 28, 2018. MemberSelect offered $25,000 on August 2, 2018, asserting this was the remaining UIM amount owed after considering prior payments. Mickow's counsel refused to sign a release for this payment, believing the full $50,000 was due.

On August 9, 2018, Mickow filed his lawsuit, though service was not issued until August 22, 2018. MemberSelect responded by issuing another $25,000 check, maintaining it had fulfilled its obligations under the policy. After MemberSelect filed for summary judgment on January 23, 2019, the trial court granted it, concluding that MemberSelect had paid all amounts owed. Mickow's appeal focuses on the trial court's summary judgment, which is reviewed de novo, affirming that there was no genuine issue of material fact and that MemberSelect was entitled to judgment as a matter of law.

Mickow contended that MemberSelect breached its contract by not fully paying the UIM coverage benefits owed. The parties agreed that the $100,000 UIM coverage limit was reduced by $50,000 from the tortfeasor’s insurers and that $25,000 paid under medical payments coverage would apply to any settlement Mickow received under the UIM policy. Mickow argued he was still owed $8,332.50, asserting that the medical payments coverage was intended to supplement what he received. However, the total payments from MemberSelect and the tortfeasor amounted to $91,766.50, leaving only $8,332.50 short of the limit. The court found that the policy's language clearly allowed MemberSelect to credit the payments, resulting in a total received by Mickow of $25,000, which was the remainder due under the policy. Thus, summary judgment for MemberSelect on the breach of contract claim was proper.

On the bad faith claim, the court noted that an insurer must act in good faith regarding its contractual obligations. Mickow alleged that MemberSelect acted in bad faith by refusing payment and exerting pressure to settle. However, MemberSelect demonstrated that it promptly paid Mickow $25,000 following his demand and sent a subsequent payment after litigation commenced. The inclusion of a release agreement with the payment did not constitute bad faith, nor was there evidence to support Mickow’s claims of unfair practices. The court affirmed the trial court's summary judgment in favor of MemberSelect, concluding that no factual dispute existed regarding the insurer's good faith dealings.