Surface v. American Spirit Insurance Companies

This is a breach of contract action based on defendants’ refusal to pay underinsured motorist coverage (UIM) to plaintiff, 1 their insured. Plaintiff was injured in a car accident by the negligent act of a government employee. Her total damages exceeded her recovery from the government tortfeasor, as limited by the Oregon Tort Claims Act (OTCA). 2 The trial court granted defendants’ motion for summary judgment, agreeing that defendants had no obligation to pay UIM benefits. We affirm.

In January 1995, plaintiff and two of her children were traveling in their car when they were struck head-on…