M. W. Vandeputte v. Rollin J. Soderholm

Appellant Sheung Kwong seeks review of a court of appeals decision answering a certified question from the Hennepin County District Court. The certified question arose from Kwongs suit against his insurer, respondent Depositors Insurance Company, following Depositors denial of Kwongs claim for uninsured motorists benefits. The court of appeals was asked to decide whether a clause in Kwongs automobile insurance policy, providing that Depositors will not be bound by any judgment for damages arising out of a suit between an insured and an uninsured motorist, is enforceable against Kwong where neither the uninsured motorists nor Depositors participated in the underlying suit. The court of appeals concluded that the clause was enforceable and thus, Depositors was not required, as a matter of law, to pay Kwong uninsured motorist (UM) benefits based on the default judgment Kwong obtained against the at-fault uninsured motorists in his automobile accident. We reverse, answering the certified question from the district court in the negative and holding that the clause relied on by Depositors to deny payment of UM benefits to Kwong violates the public policy behind the No-Fault Act and is therefore unenforceable.