Low, Ball & Lynch’s
WEEKLY LAW RESUME
May
19, 2005 Issue By: Ray Coates
Insurance - Two-Year Statute of
Limitations For
Uninsured Motorist Claims Not
Retroactive
Bullard v.
Court of Appeal, Third District
(May 10, 2026)
In 2003, the California Legislature amended California Insurance Code
section 11580.2 , subdivision (i), changing the statute of limitations period
for an uninsured motorist claim from one year to two years. The amendment
became effective on January 1, 2004. The question in this case was whether the
amendment to section 11580.2(i) applies retroactively.
Plaintiffs Lee and Nina Bullard were injured in a motor vehicle collision on
June 16, 2002, when a pick-up driven by Michael Hall rear-ended the Bullard
vehicle. Hall was uninsured at the time of the collision. The Bullards had
motor vehicle insurance coverage with Defendant California State Automobile
Association (CSAA). The Bullards’ policy included uninsured motorist coverage.
Under section 11580.2(i), a U.M. cause of action does not accrue to an
insured unless one of the following actions takes place: 1) the insured files
suit against the uninsured motorist; 2) there is agreement as to the amount due
under the policy; or 3) the insured formally institutes arbitration proceedings
by notifying the insurer in writing. Prior to the amendment of section
11580.2(i), one of these actions had to take place within one year of the
accident. The amendment extended the accrual period from one to two years.
After discovering that Hall was uninsured, the Bullards notified CSAA by
letter in February 2003 that they intended to pursue an uninsured motorist
claim. The letter did not mention arbitration. In April 2003, the CSAA claims
adjuster spoke with the Bullards’ attorneys’ paralegal. The adjuster later
claimed that she advised the paralegal that there was a one year, not a two
year statute of limitations. The adjuster and the paralegal disputed whether
the issue of arbitration came up in the conversation. One year and three days
after the accident, the Bullards filed their personal injury action against
Hall.
In September 2003, CSAA denied the Bullards uninsured motorist claim on the
ground that the Bullards had failed to preserve their right to arbitrate under
Section 11580.2(i). The Bullards then filed a motion to compel arbitration,
arguing that the amendment to section 11580.2(i) should be deemed retroactive
and that CSAA should be estopped from denying the demand for arbitration. The
trial court rejected the Bullards’ motion.
On appeal, the Third Appellate District considered the Bullards’ claim that
the amendment to section 11580.2(i) should be applied retroactively. Agreeing
with the trial court, the Court of Appeal found compelling that the plain
language of the statute made no mention of retroactivity. The Court held that
it is a basic canon of statutory interpretation that statutes do not apply
retroactively unless the Legislature plainly intends them to do so. The Third
District also found nothing in the Legislative history supporting a claim for
retroactive application.
Plaintiffs also argued that because the personal injury statute of
limitations (CCP section 335.1) changed from one year to two years, effective
January 1, 2003, the U.M. statute should be deemed to have changed at the same
time. The Court of Appeal held there was no such intent on the part of the
Legislature.
Finally, the Third District rejected the Bullards’ claim of estoppel.
Plaintiffs conceded that CSAA was not under a duty to inform them of any
statute of limitations issues, because they were represented by counsel. The
Court held there was no false representation or concealment of a material fact
that Bullards’ counsel relied upon. Rather, to their detriment, Bullards’
counsel relied on their own erroneous belief that the statute of limitations
for a U.M. claim in 2003 was two years. The trial court’s order was therefore
affirmed.
COMMENT
This decision makes clear that the amendment extending the statute of
limitations for U.M. claims from one year to two years shall be not be applied
retroactively. Therefore, U.M. claims which accrue on or after January 1, 2026
shall have a two year statute of limitations.
____
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