Karscig v. McConville

Jennifer McConville (Jennifer) ran a stop sign while driving her parent’s car, and she crashed into Mark Karscig (plaintiff) on his motorcycle. Karscig sued Jennifer and her insurance company, American Family Insurance (American Family) (defendant). American Family had issued two insurance policies that potentially covered Karscig’s claim: a policy issued to Jennifer’s parents that covered the car in the accident (parents’ policy); and a separate policy issued to Jennifer that covered a different car (Jennifer’s policy). Jennifer’s parents owned both of these cars; Jennifer was unmarried and lived in her parents’ household. American Family paid Karscig under the parents’ policy but declined coverage under Jennifer’s policy based on three policy provisions: a household exclusion that precluded coverage of other cars owned by household members, and two provisions that precluded aggregation—or stacking—of coverage on multiple policies. These anti-stacking provisions read: “The total limit of our liability under all policies issued to you by us shall not exceed the highest limit of liability under any one policy” and “We will pay no more than these maximums no matter how many vehicles are described in the declarations, or insured persons, claims, claimants, policies, or vehicles are involved.” The trial court bifurcated Karscig’s liability and damages claims. Karscig and American Family both sought declaratory judgment on liability under Jennifer’s policy. The trial court entered summary judgment for American Family. Karscig appealed.