Progressive Direct Ins. Co. v. Keen

Supreme Court of Alabama

Baldwin County | No. SC-2022-0466 | Nov. 18, 2022

Court Reverses Decision on Insurance Coverage Dispute Involving Multiple Policies and a Motor-Vehicle Accident

In September 2019, Madison Keen was in a motor-vehicle accident with Robert Creller. Creller's vehicle, owned by his parents, was insured by Alfa Mutual Insurance Company ("Alfa"). After the accident, Keen reached a settlement with Alfa and released both Creller and Alfa from further claims. Later, Keen pursued underinsured-motorist benefits from her own policies with Progressive and State Farm. During this process, it was revealed that Creller had an additional policy with Allstate Insurance Company. Keen then sought to void her settlement with Alfa and Creller, believing they had made a mutual mistake regarding the Allstate policy's coverage.

Surprisingly, in her motion for a partial summary judgment, Keen argued against her own interest, stating the Allstate policy did not offer coverage. Creller and Alfa joined Keen's motion, while Progressive opposed it, concerned about how the Allstate policy might influence Keen's claim against them. The trial court sided with Keen, but Progressive appealed. Progressive contended that Keen's motion was improperly framed as it sought judgment against her own claim. Progressive also disputed the interpretation of the Allstate policy and highlighted that Creller had admitted to being covered by Allstate during the time of the accident.

The court agreed with Progressive, stating that there was a genuine issue regarding the Allstate policy's coverage. Therefore, the trial court's judgment was reversed, and the case was remanded for further review.

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