State Farm Mut. Auto. Ins. Co. v. JakubowiczAnnotate this Case
Carol Jakubowicz and her two minor sons were involved in a car accident with Ronald Williams that resulted in injuries to the Jakubowiczs. Jakubowicz filed suit on behalf of herself and her sons against Williams. More than three years after the accident, Jakubowicz filed a motion for leave to amend her complaint and add an underinsured motorist (UIM) claim against State Farm, the Jakubowiczs’ insurer, stating that she believed Williams’ insurance policy would be insufficient to cover her damages. The trial court granted Jakubowicz’s motion for leave to amend. State Farm moved for summary judgment on the UIM claim, claiming it was barred because it was filed after the three-year limitation period in Jakubowicz’s insurance policy. The trial court denied the motion. The Supreme Court affirmed, holding that because the provision in the policy requiring an insured to bring suit within three years is in direct conflict with the policy’s requirement that State Farm will only pay if the underinsured motorist’s insurance has been exhausted, the policy is ambiguous and must be construed in favor of the insured. Remanded.