A Tennessee trial judge improperly granted summary judgment to an auto insurer who argued its liability on an uninsured motorist policy should have been offset by workers compensation benefits paid to the driver, the Tennessee Court of Appeals ruled Wednesday.
The court reversed and remanded a trial judge’s grant of summary judgment to Erie Insurance Exchange, which argued it was entitled to have its payout obligation reduced by a workers comp award issued to Moye Jones.
Mr. Jones and his wife were involved in an auto accident with Cathleen Craddock, after which the couple sued its uninsured motorist insurer, Erie, over a coverage dispute.
Erie contended that Mr. Jones was injured while in the course and scope of his employment with ABC Holdings Inc., and that the injury was work-related and compensable.
Erie also argued that Mr. Jones incurred additional medical expenses when he opted to treat outside of the workers comp system.
The trial judge granted summary judgment to Erie on the basis that additional workers comp benefits were payable to Mr. Jones but that he voluntarily waived them.
The appeals court, in reversing, said summary judgment was premature because “genuine issues of material fact remain as to whether Mr. Jones was entitled to additional workers’ compensation benefits and failed to pursue them, constituting a voluntary waiver of benefits.”
“We cannot say that a reasonable person could reach only the conclusion that workers’ compensation benefits were payable to Mr. Jones,” the court wrote.