Although attempts have been made to expand the meaning of
"legally entitled to recover" when the municipal
statutory damages cap is involved, plaintiffs have not been
successful in recovering beyond the statutory cap in Alabama.
In State Farm Mutual Automobile Insurance Company v.
Causey, 509 F. Supp. 2d 1026 (M.D. Ala. 2007), State Farm
filed a declaratory judgment action seeking the court to declare
that it had no obligation or duty to pay uninsured/underinsured
motorist benefits to the defendants as a result of an accident with
a municipal employee. The central issue presented was whether an
insured can recover uninsured/underinsured motorist benefits from
her own UM/UIM carrier when the alleged tortfeasor is a
municipality and enjoys the benefit of a statutory cap on
damages.
