State Farm Mut. Auto. Ins. Co. v. Lawrence
In State Farm Mut. Auto. Ins. Co. v. Lawrence, 26 P.3d 1074 (Ala.2001), the parents of a boy who was severely injured by a suicidal, speeding driver sought coverage under the "Each Accident" limits for their negligent infliction of emotional distress claims after State Farm had paid the "Each Person" limits for their son's claims. Adopting the approach set forth in Crabtree , the court explained that the "dispositive questions" in determining coverage "are whether the . . . parents suffered 'bodily injury,' and whether such 'bodily injury' was suffered 'in the same accident' that injured their son." Lawrence, 26 P.3d at 1079.
Finding that State Farm had waived its arguments regarding these dispositive issues, the court held that the parents' negligent infliction of emotional distress claims qualified for policy limits separate from the amounts paid for their son's claims. Id.