Doneson v. Farmers Ins. Exch.
Doneson v. Farmers Ins. Exch.
Opinion of the Court
¶ 1 Samuel Doneson appeals from the trial court's order granting a motion filed by appellees Farmers Insurance Exchange and Farmers Insurance Company of Arizona, Inc. (collectively "Farmers") to dismiss the complaint against them. For the following reasons, we affirm the judgment of the trial court.
Factual and Procedural Background
¶ 2 "In reviewing a trial court's decision to grant a motion to dismiss, we assume the truth of the facts asserted in the complaint." Sw. Non-Profit Housing Corp. v. Nowak ,
¶ 3 At the time of the accident, Doneson was an insured under an automobile liability insurance policy issued by Farmers. The policy included a "medpay" provision that provided coverage for injuries sustained in an automobile accident. That policy contained an exclusion for "bodily injury" that "[o]ccurr[ed] during the course of employment if workers' or workmen's compensation benefits are required." Doneson submitted a claim for $5,000 in medical bills, which Farmers denied.
¶ 4 Doneson filed a complaint in the superior court alleging claims of breach of contract, declaratory relief, insurance bad faith, and interference with contract. Farmers filed a motion to dismiss the complaint, asserting the medpay claim was properly denied under the workers' compensation exclusion. The trial court granted Farmers's motion and dismissed the complaint with prejudice. Doneson appealed. We have jurisdiction pursuant to A.R.S. §§ 12-120.21(A)(1) and 12-2101(A)(1).
Motion to Dismiss
¶ 5 We review a trial court's grant of a motion to dismiss for failure to state a claim under Rule 12(b)(6), Ariz. R. Civ. P., de novo. Blankenbaker v. Marks ,
¶ 6 The sole issue on appeal is whether the policy exclusion providing for no coverage when "workmen's compensation benefits are required" applies when, as here, the injured worker has recovered from a third-party tortfeasor and reimbursed the employer's insurer for workers' compensation benefits pursuant to A.R.S. § 23-1023(D). Farmers asserts that benefits are "required" when an injured employee is entitled to receive workers' compensation benefits regardless of whether the employee "sought, was ever paid, or was later required to reimburse workers' compensation benefits." Doneson claims that when an insured party reimburses a workers' compensation insurer for the benefits received, the insured has taken nothing, and therefore benefits were essentially not "required." Doneson asserts the trial court erred in failing to consider parol evidence supporting his interpretation of the provision.
¶ 7 In determining whether to consider parol evidence to interpret a contract, a "judge first considers the offered evidence and, if he or she finds that the contract language is 'reasonably susceptible' to the interpretation asserted by its proponent, the evidence is admissible to determine the meaning intended by the parties." Taylor v. State Farm Mut. Auto. Ins. Co. ,
¶ 8 We do not believe the language of the exclusion is reasonably susceptible to Doneson's interpretation. In Rubin v. State Farm Mutual Automobile Insurance Co. , on which Doneson principally relies,
¶ 9 We find Bailey v. Interinsurance Exchange ,
¶ 10 Doneson claims the trial court erred by failing to apply the standard for parol evidence set forth in Taylor and instead simply determining that the language of the provision was unambiguous. But even under the Taylor standard, the party seeking to introduce extrinsic evidence must show that the language of the contract is "reasonably susceptible" to their proposed interpretation. Taylor ,
¶ 11 Because we do not believe the policy language is "reasonably susceptible" to the interpretation proposed by Doneson, we conclude the trial court did not err in failing to consider any of Doneson's parol evidence. Taylor ,
Attorney Fees
¶ 12 Farmers has requested their costs and attorney fees on appeal pursuant to A.R.S. § 12-341.01(A). An award of fees pursuant to this statute is discretionary, and Farmers has not explained why it is appropriate here. See Munger Chadwick, P.L.C. v. Farwest Dev. & Constr. of the Sw., LLC ,
Disposition
¶ 13 For the foregoing reasons, we affirm the ruling of the trial court dismissing Doneson's claims with prejudice. We award Farmers their costs on appeal pending compliance with Rule 21, Ariz. R. Civ. App. P.
Doneson also repeatedly cites Ferrara v. 21st Century North America Insurance Co. , a trial court decision in Pima County Superior Court Case No. C20134813. This case has no precedential value and we disregard it. See Ariz. R. Sup. Ct. 111(a)(2), (c)(1) ; Ariz. R. Civ. App. P. 28(f) ; Sw. Airlines Co. v. Ariz. Dep't of Revenue ,
Reference
- Full Case Name
- Samuel G. DONESON v. FARMERS INSURANCE EXCHANGE, a California Reciprocal or Interinsurance Exchange Farmers Insurance Company of Arizona, Inc., an Arizona Corporation
- Cited By
- 2 cases
- Status
- Published