Padilla v. State Farm Mutual Automobile Ins. Co.

ORS 742.526(1) governs the “excess” relationship between multiple applicable insurance policies (“The personal injury protection benefits with respect to * * * “(b) Passengers injured while occupying the insured motor vehicle shall be primary.)

Plaintiff, the insured, sued Defendant, insurer, for breach of contract when Defendant refused to pay lost wages for an injury that Plaintiff suffered in an automobile accident in 2017. At trial, the parties stipulated to the material facts and filed cross-motions for summary judgement asking the court to rule as to whether ORS 742.524 (1)(b) capped wage payments at 52 weeks concurrent with all policies or whether each policy carries its own limit. The trial court found in favor of Defendant, ruling that the 52-week limit runs concurrent with all policies. Plaintiff appealed and assigned error to the trial court’s conclusion on summary judgment. ORS 742.526(1) governs the “excess” relationship between multiple applicable insurance policies (“The personal injury protection benefits with respect to * * * “(b) Passengers injured while occupying the insured motor vehicle shall be primary.) Defendant argued that “excess” does not allow for policy stacking and that there is a 52-week cap on lost wage payments under a single claim. Plaintiff argued that the statutory limitations were to be read as a per-policy limitation. The Court held that Plaintiff’s interpretation was more convincing and better in line with previous decision regarding insurance stacking. Reversed and Remanded.