McArthur v. State Farm Mutual Automobile Insurance Co.

Justice LEE,

opinion of the Court:

T1 After sustaining injuries in an auto accident, Tavis MeArthur filed this suit in federal district court to recover underinsured motorist (UIM) benefits under his State Farm automobile insurance policy. Soon *983thereafter, State Farm filed a motion for summary judgment, arguing that MeArthur had failed to exhaust the liability limits of the tortfeasor's insurance, a precondition of his UIM benefits policy. The district court granted the motion, upholding this exhaustion provision against McArthur's claim that it was void on public policy grounds.

{2 McArthur…