Vogelin v. American Family Mutual Insurance

In this insurance breach-of-contract case, we decide how a liability payment that plaintiff recovered from a tort-feasor affects her recovery of underinsured motorist (UIM) benefits under her own insurance policy. We conclude that the relevant Oregon statutes permitted defendant — plaintiffs insurer — to calculate plaintiffs UIM benefit by subtracting the tortfeasor’s liability payment from the uninsured motorist (UM) liability limit of plaintiffs policy, instead of by subtracting that payment from the amount of plaintiffs total damages.

The facts are undisputed. Plaintiff, who had purchased…