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Case Law Alerts

Household Vehicle Exclusion Once Again Enforced—Under the Appropriate Facts

Major v. Cruz, --- A.3d ---, 2024 WL 562021 (Pa. Super. Ct. Feb. 13, 2024)

April 1, 2024

by Christopher W. Woodward

The household vehicle exclusion has once again been proven to be viable and enforceable—under the right circumstances. Major was using her mother’s vehicle when she was struck by another vehicle operated by Cruz. Major thereafter filed suit against Cruz and State Farm, which had issued a policy insuring Major’s mother’s vehicle and a separate policy insuring a vehicle owned by Major. Cruz’s liability insurer tendered its limits of $15,000. Major’s mother had waived stacking on the UIM policy that applied to the vehicle Major was operating at the time of the accident. As first named insured, Major’s mother had also rejected stacking on the separate State Farm policy insuring Major’s vehicle. State Farm had paid Major the UIM benefits applicable to the vehicle she was operating and under the policy issued to her mother, but denied payment of UIM benefits under the policy insuring Major’s own vehicle as a result of the household vehicle exclusion.

Although the trial court had addressed whether the Coordination of Benefits provisions in the State Farm policies applied and had not addressed the validity and application of the household exclusion, the Superior Court noted that, unlike the Supreme Court’s opinion in Donovan (holding that a Coordination of Benefits provision did not apply as the stacking waiver was invalid in that case), Major had waived her challenge to the stacking waivers applicable to the State Farm policies. Thus, the Superior Court was required to evaluate whether the household vehicle exclusion was effective and precluded additional payment from State Farm.

Noting that there were valid stacking waivers as to each State Farm policy, the Superior Court determined that the rationale of Donovan and Gallagher does not apply. As such, the household vehicle exclusion was a valid preclusion of UIM benefits and Major was not owed any benefits under the policy insuring her own vehicle. Since the only UIM coverage available to Major was the policy insuring the vehicle she was operating—her mother’s vehicle—the Coordination of Benefits provision had no effect.

The Superior Court, thus, once again has proven that, unlike how many have characterized Gallagher and its progeny as entirely nullifying the household vehicle exclusion, that exclusion remains valid and enforceable under the appropriate circumstances. As the Superior Court observed, its ultimate goal is to ensure that insureds receive the coverage that they paid for and that insurers provide the coverage they had contractually agreed to provide. 


Case Law Alerts, 2nd Quarter, April 2024 is prepared by Marshall Dennehey to provide information on recent developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2024 Marshall Dennehey, all rights reserved. This article may not be reprinted without the express written permission of our firm.

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New Jersey Appellate Division Affirms Recreational Immunity for County Under Landowners' Liability Act

In a recent unpublished decision in Matthew Kuzma, etc. v. Middlesex County Parks Department, et al., the New Jersey Appellate Division affirmed summary judgment in favor of Middlesex County Parks Department, holding that the county was immune from liability under New Jersey's Landowners' Liability Act (LLA), notwithstanding its failure to plead the immunity as an affirmative defense in its answer to the Complaint. The case arose from injuries sustained by fourteen-year-old plaintiff, Matthew Kuzma, while playing basketball at Spring Lake Park in South Plainfield on August 23, 2019. The plaintiff observed a crack in the basketball court before beginning to play but did not consider it dangerous. During the game, his foot became caught in the crack, causing him to fall and suffer a significant ankle injury. The plaintiff alleged that the injury resulted in ongoing physical limitations and deprived him of the opportunity to play collegiate basketball. The plaintiff filed suit alleging that the defendants negligently maintained the basketball court. Although the county did not assert LLA immunity as an affirmative defense in its answers, it later moved for summary judgment on that basis. The plaintiff opposed the motion, arguing that the county had waived the defense by failing to plead it. The county maintained that the plaintiff had received sufficient notice of its intent to rely on the LLA through discovery and therefore suffered no unfair surprise or prejudice. The trial court agreed and granted summary judgment, concluding that the county should be permitted to invoke statutory immunity notwithstanding its failure to formally plead the defense. Relying heavily on the New Jersey Supreme Court's guidance in Arias v. Cnty. of Bergen, holding a county park was subject to the immunity of the LLA, the Appellate Division affirmed, holding that the county's failure to plead LLA immunity did not preclude reliance on the defense under the circumstances presented. The court determined that the plaintiff had received adequate notice of the immunity claim through discovery and that permitting the defense furthered the public-policy objectives embodied in the LLA. In affirming dismissal, the Appellate Division acknowledged the seriousness of the plaintiff's injury and the general societal interest in maintaining parks and recreational facilities in a safe condition. However, the court emphasized that both the legislature and the New Jersey Supreme Court have expressed a clear policy choice to limit liability for public and private landowners who make recreational property available for public use. The decision reinforces the courts' continuing adherence to the Landowners' Liability Act and the principle that recreational lands and facilities should be broadly protected from liability exposure, even in cases involving significant personal injuries.