Berrey v. Travelers Indemnity Co. of America

Dist. Ct. did not err in granting defendant-insurance company’s motion for summary judgment in action seeking declaration that defendant’s policy providing underinsured motorist coverage required that defendant pay plaintiff for entire $310,000 net loss that plaintiff incurred in work-related traffic accident. Defendant was entitled to subtract $100,000 from $310,000 loss figure, since: (1) plaintiff had received workers’ compensation lien waiver in that amount, when insurance company for at-fault driver paid plaintiff’s employer $100,000 to partially satisfy employer’s workers’ compensation lien; and (2) terms of defendant’s policy allowed it to subtract from loss amount, money that was paid on plaintiff’s behalf to satisfy workers’ compensation lien. Ct. further observed that contrary result would have given plaintiff windfall to extent that she would have received full amount of her damages and her workers’ compensation benefits. Fact that insurance company for at-fault driver paid $100,000 directly to plaintiff’s employer as opposed to plaintiff did not require different result.