Anoka County District Court File No. C5-02-6039
Considered and decided by Schumacher, Presiding Judge; Willis, Judge;
and Wright, Judge.
1. The six-year statute of limitations governing contract actions applies to an insured's action against an insurer for no-fault benefits.
2. The statute of limitations begins to run on an action for no-fault benefits when the cause of action accrues.
The opinion of the court was delivered by: Wright, Judge
Appellant brought an action against respondent insurance company, seeking recovery of no-fault benefits under her automobile insurance policy. The district court granted summary judgment in favor of respondent, concluding that the action was barred by the six-year statute of limitations applicable to contract actions, which began to run when appellant's no-fault benefits were discontinued. Appellant challenges the entry of summary judgment. We affirm.
Appellant Karyn Entzion was injured in an automobile accident in January 1992. Entzion filed a claim with respondent Farmers Insurance Company (Farmers Insurance) to receive no-fault benefits for her medical expenses; she did not claim wage-loss benefits. Farmers Insurance paid no-fault benefits totaling $18,836.83 for Entzion's medical expenses. In December 1994, based on the report of an independent medical examiner who opined that Entzion would no longer benefit from additional medical treatment and was capable of returning to work without restriction, Farmers Insurance notified Entzion that her no-fault benefits were discontinued. Entzion had incurred an undisclosed amount of unclaimed medical expenses and roughly $23,000 in unclaimed wage loss when her benefits were discontinued.*fn1
In May 2002, Entzion filed a claim for the remaining no-fault benefits. Under her policy limits, she had $1,063.17 in unpaid medical-expense benefits and $20,000 in unpaid wage-loss benefits. In July 2002, Farmers Insurance reiterated that Entzion's no-fault benefits were discontinued in December 1994 and denied Entzion's claim.
Entzion brought a lawsuit to compel Farmers Insurance to pay the remaining no-fault benefits. Farmers Insurance moved for summary judgment, arguing that the six-year statute of limitations began running in 1994 and barred Entzion's claim. The district court agreed and granted summary judgment. This appeal followed.
I. Does the six-year contract statute of limitations apply to Entzion's action to recover no-fault ...