United States District Court, W.D. Washington, Tacoma
ORDER GRANTING DEFENDANT'S MOTION FOR PARTIAL
BENJAMIN H. SETTLE, UNITED STATES DISTRICT JUDGE.
matter comes before the Court on Defendant State Farm Mutual
Automobile Insurance Company's (“State Farm”)
motion for partial summary judgment re: extra-contractual
claims (Dkt. 11). The Court has considered the pleadings
filed in support of and in opposition to the motion and the
remainder of the file and hereby grants the motion for the
reasons stated herein.
September 9, 2016, Plaintiff Marvin Spencer
(“Spencer”) filed a complaint against State Farm
in Pierce County Superior Court for the State of Washington.
Dkt. 1-1. Spencer asserts claims for breach of contract and
violations of the Washington Insurance Fair Conduct Act
(“IFCA”), RCW Chapter 40.30. Id.,
October 18, 2016, State Farm removed the matter to this
Court. Dkt. 1.
August 30, 2017, State Farm filed a motion for partial
summary judgment. Dkt. 11. On September 18, 2017, Spencer
responded. Dkt. 14. On September 22, 2017, State Farm
replied. Dkt. 17.
September 27, 2013, Kunthea Oul ran a stop sign and crashed
into Spencer's vehicle. Dkt. 13, Declaration of Scott
Wakefield, Exh. A at 2. In October 2015 Spencer settled his
claim with Ms. Oul for her policy limit of $50, 000.
Id., ¶ 2. Spencer then asserted an underinsured
motorist claim with his insurance company State Farm. On
October 16, 2015, State Farm paid Spencer $25, 000 as the
policy limit for a personal injury protection
(“PIP”) claim. Id., Exh. D. State Farm,
however, requested that Spencer hold the money in trust
subject to “appropriate offsets or setoffs.” Dkt.
15, Declaration of Amanda M. Searle (“Searle
Decl.”), Exh. 5.
November 2, 2015, Spencer, via letter from his attorney,
demanded State Farm tender the $100, 000 underinsured
motorist policy limit. Id., Exh. G. In response,
State Farm requested that Spencer undergo an independent
medical evaluation (“IME”). After some delay, the
evaluation was scheduled for February 10, 2016. Dkt. 12,
Declaration of Jayne Kreifel (“Kreifel Decl.”),
Exh. A. In late January or early February, Spencer cancelled
the IME. Spencer asserts that he cancelled the IME
because State Farm had failed to deliver a copy of his policy
so that he could confirm IME requirement. Dkt. 14 at 6.
February 4, 2016, State Farm emailed a copy of Spencer's
policy to Spencer's counsel. Searle Decl., Exh. 7.
February 23, 2016, State Farm agreed to waive its PIP
subrogation rights to $3, 967.44 and pay for some other fees.
Id., Exh. 6.
April 22, 2016, Spencer filed an IFCA notice with the
Washington Insurance Commissioner. Dkt. 14 at 6.
August 15, 2017, Spencer underwent an IME with Dr. Hal
Rappaport. Kreifel Decl., Exh. 5. At issue was whether
Spencer's ulnar nerve transposition surgery was related
to the motor vehicle collision. Id. at 3. Dr.
Rappaport ultimately concluded that treatment for his ulnar
nerve was not reasonable under the claim. Id. at 22.