DeStefano v. Farmers Auto. Ins. Assn.

2016 IL App (5th) 150325 (Ill. App., 2016)

Words & Phrases

Underinsured Motorist Coverage: Setoff

Trial Judge

Rodolfo Garcia

Appellate Judge

Cunningham

Holding

Setoff limited to amount paid by liability insurer of the underinsured mail truck driver but not for the payment by the United States as the driver’s employer.

Fact Summary

This case arises out of a demand for underinsured motorist (UIM) benefits by plaintiff, Deborah DeStefano, as mother and next friend of Caroline DeStefano, a minor, against defendant, Farmers Automobile Insurance Association (Farmers), incorrectly sued as Pekin Insurance Company. Plaintiff filed this declaratory judgment action in the circuit court of Madison County after her daughter, who was operating a Honda motorcycle, was struck by a motor vehicle operated by a rural United States postal worker, Donald Sprinot, as she crossed the family’s driveway on August 28, 2010. The accident was due to the negligence of Mr. Sprinot, who had a single limit policy of $25,000, through Progressive Insurance Company (Progressive). Progressive paid its policy limit of $25,000 to plaintiff. Plaintiff maintained a $100,000 UIM policy with defendant and made a demand on defendant for the balance of the underinsured limits of $75,000.

¶ 2 The parties stipulated to the facts. They agreed, inter alia, that Mr. Sprinot was negligent when, acting as a rural mail carrier, he drove his 2001 GMC Jimmy pickup truck off the public road and “traversed onto the driveway of the DeStefano property” striking Caroline as she rode a motorcycle on the family’s driveway. Farmers did not contest coverage under the underinsured motorist provision issued to Caroline’s father, Patrick, but during the stipulated bench trial asserted it was entitled not only to a $25,000 setoff paid by Progressive, but also a $49,900 setoff paid by the United States in exchange for a release of plaintiff’s claims against the United States and its agents and employees.

¶ 3 It is uncontested that the claimed damages exceed all available underinsured motorist coverage, even if credits are allowed for the payment made by the United States. Ultimately, the trial court entered judgment in favor of plaintiff and against Farmers in the amount of $75,000, finding Farmers is not entitled to set off the money paid by the United States to plaintiff. The only issue raised in this appeal is whether the trial court erred in entering judgment in favor of plaintiff in the amount of $75,000. We affirm.

Back