EAST ST. LOUIS – Arch Insurance paid $1 million on a trucker’s fatal crash but doesn’t have to pay another million, U.S. District Judge Stephen McGlynn ruled on Feb. 18.
He granted summary judgment against Madison County resident Kaleb Morris, estate administrator for father Victor Morris.
McGlynn rejected a claim that coverage of an uninsured driver should match coverage for policyholder WW Transport, employer of Victor Morris.
He found the claim might involve laws of Arkansas, Iowa, or Illinois, but it would fail under all three.
Victor Morris started driving for WW Transport in 2018, beginning and ending his trips at 301 W. Ferguson Street in Wood River.
On his sixth day he drove a heavy Freightliner north on U.S. Route 67 in Arkansas.
A southbound Kia Sorento swerved into his lane and hit his cab hard enough to shift his weight and disable his steering.
Momentum sent him across the line and a heavy Freightliner hit him.
Police found that Kia driver Rebecca Anderson caused the accident.
Arch covered WW Transport as its insured party at a $1 million limit.
Kaleb Morris settled with Anderson for $30,000, the limit on her policy.
Arch claimed its policy limited recovery for an underinsured party to $25,000.
Morris requested arbitration in 2019, and Arch rejected it.
Lanny Darr of Alton sued Arch for him in Madison County circuit court in 2020, claiming at least $1 million of underinsured coverage.
"Plaintiff seeks to reform the subject policy to conform with the law of the state of Illinois," Darr wrote.
He claimed the policy provided that it would conform to the law of the state where a vehicle was regularly used.
He claimed that the truck was garaged in Illinois and that this and other issues made the claim subject to Illinois law.
Arch removed the complaint to district court on the basis of diversity jurisdiction as a Missouri corporation.
Arch counsel Michael Keffner of Kansas City moved for summary judgment last year.
He claimed WW Transport made a voluntary and intentional decision to purchase the lowest available limits for insured and underinsured coverage.
He claimed that if McGlynn enforced the provision about conforming to law, he should apply Arkansas law.
As an alternative he offered the law of Arch’s home state Iowa.
Darr moved for summary judgment, claiming the policy limit on uninsured and underinsured coverage “was not procured in a commercially reasonable setting and is therefore ineffective.”
He claimed Arch should have given WW Transport necessary information to make an intelligent and informed decision regarding coverage options.
He claimed WW Transport and Arch hadn’t discussed coverage for uninsured and underinsured drivers for 18 years.
McGlynn found he might apply Iowa law because WW Transport registered and licensed the truck and bought insurance there.
He found he might apply Arkansas law because the accident happened there.
He found he didn’t need to decide, as both resulted in an outcome of no coverage.
As for Illinois law, McGlynn found it was limited to policies renewed, delivered, or issued for delivery in Illinois.
He found WW Transport filed forms for Illinois rejecting policy limits above the minimum, complying with statutory requirements and providing a valid waiver of
higher limits.
Morris continues pursuing a wrongful death suit against Daimler Trucks at district court, claiming defects in the steering mechanism caused his father’s death.
Daimler Trucks filed a counter claim against Anderson, who moved for summary judgment that her settlement relieved her of liability.
Gilbert denied it last year, applying Arkansas contribution law.
Paul Festenstein of Chicago represents Anderson.
Gilbert has set trial to start Nov. 7.