Justia Wisconsin Supreme Court Opinion Summaries

Wanda Brethorst submitted an uninsured motorist (UM) claim to her insurer, Allstate. Brethorst made a demand for settlement, and Allstate responded with only a partial settlement. Brethorst rejected the offer then filed suit against Allstate for bad faith. Allstate filed a motion asking that Brethorst's contract claim for UM coverage be bifurcated from her bad faith claim and that discovery on the bad faith claim be stayed until the contract claim was resolved. Brethorst opposed the motion on the grounds that she had filed only one claim, and thus no bifurcation or stay of discovery was appropriate. The circuit court agreed with Brethorst and denied Allstate's motion. The Supreme Court affirmed, holding (1) an insured may file a bad faith claim without also filing a breach of contract claim; and (2) Brethorst had supplied the insurer and the court with sufficient evidence of a breach of contract by the insurer to proceed with discovery on her bad faith claim. View "Brethorst v. Allstate Property & Casualty Ins. Co." on Justia Law

Plaintiffs, injured in an automobile accident, sought $10,000 from defendant, the driver, the amount received by plaintiffs from plaintiffs' insurer. At issue was whether the circuit court erred in denying plaintiffs a judgment of $10,000 against defendant when defendant did not pay plaintiffs' insurer $10,000, a sum that represented the insurer's subrogation claim. The court concluded that the collateral source rule did not, under the facts of the case, entitle plaintiffs to recover $10,000 when the case was indistinguishable from Paulson v. Allstate. Ins. where the Paulson court determined that the injured party's recovery from the tortfeasor was not affected by the subrogated insurer's settlement of its subrogation claim with the tortfeasor.

The driver of a vehicle, owned by the driver's girlfriend's father, in which plaintiff was a passenger, lost control of the vehicle and drove into a ditch wherein the driver and one other passenger were killed and plaintiff sustained severe injuries. The vehicle was insured by Wisconsin American Mutual Insurance Company ("Wisconsin American") through an automobile insurance policy issued to the driver's girlfriend's father. The girlfriend permitted the driver to use the vehicle as long as he went to a local grocery store. The driver, instead, picked up passengers including plaintiff, and was driving to a party when the accident occurred. At issue was whether the alleged negligent entrustment of the vehicle constituted an independent concurrent cause of plaintiff's injuries sufficient to trigger coverage under Wisconsin American's insurance policy. The court held that the alleged negligent entrustment of the vehicle did not constitute an independent concurrent cause of plaintiff's injuries sufficient to trigger coverage when no coverage existed for the alleged negligent operation of the vehicle. Therefore, there was no coverage for plaintiff's negligent entrustment claim and Wisconsin American was entitled to summary judgment. The court also held that its holding was dispositive of the case and did not need to reach the issue of whether plaintiff's negligent entrustment claim was barred by claim or issue preclusion.

Plaintiff appealed a grant of summary judgment in favor of Allstate Indemnity Company ("Allstate") where plaintiff's claims for coverage stemmed from the death of plaintiff's eight-year-old daughter at her ex-husband's home. At issue was whether plaintiff's claim for wrongful death was covered under the terms of a homeowner's insurance policy Allstate issued to plaintiff's ex-husband. The court held that summary judgment in favor of Allstate was improper where Allstate failed to meet its burden of demonstrating that the family exclusion unambiguously precluded coverage.