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VOGELIN v. AMERICAN FAMILY MUT. INS. CO.

(CC0502-01571; CA A132051; SC S056655).

213 P.3d 1216 (2009)

346 Or. 490

Jessica VOGELIN, Petitioner on Review, v. AMERICAN FAMILY MUTUAL INSURANCE COMPANY, Respondent on Review.

Supreme Court of Oregon, En Banc.

Decided July 16, 2009.

Attorney(s) appearing for the Case

Kathryn H. Clarke, Portland, argued the cause for petitioner on review. With her on the brief was Steven A. Kahn.

Thomas M. Christ, Cosgrave Vergeer Kester LLP, Portland, argued the cause for respondent on review. With him on the brief was Brian J. Scott.

Meagan A. Flynn, Portland, filed the brief on behalf of amicus curiae Oregon Trial Lawyers Association.

Joel S. DeVore, Luvaas Cobb, Eugene, filed a brief on behalf of amici curiae Allstate Ins. Co., State Farm Mutual Auto Ins. Co., and The Property Casualty Insurers Association of America.

WALTERS, J.

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

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