Padilla v. State Farm Mutual Automobile Ins. Co.

ORS 742.524(1)(b) provides that PIP benefits are subject to a maximum payment period “in the aggregate of 52 weeks.” Black’s Law Dictionary states that “aggregate” means “to collect into a whole.”

Padilla was injured as a passenger in an auto accident and suffered 86 weeks of disability which prevented her from working. Padilla received personal injury protection (PIP) benefits for 52 weeks of lost wages under the driver’s insurance policy, and after the expiration of those benefits, applied for lost wages under the PIP benefit of her individual policy. Padilla’s insurance company denied coverage and cited the statutory limitations on PIP benefits. Padilla then sued her insurer for breach of contract where the trial court found in favor of the insurer. ORS 742.524(1)(b) provides that PIP benefits are subject to a maximum payment period “in the aggregate of 52 weeks.” Black’s Law Dictionary states that “aggregate” means “to collect into a whole.” Thus, the Court held that given the structure and context of the statute, there was no textual basis for concluding that the 52-week limitation ran concurrently. Moreover, the Court reasoned that “this benefit” means benefits “per policy”. Reversed and remanded.