Bankers & Shippers Ins. v. Kildow

654 S.W.2d 600, 9 Ark. App. 86, 1983 Ark. App. LEXIS 862
CourtCourt of Appeals of Arkansas
DecidedJuly 6, 1983
DocketCA 82-115
StatusPublished
Cited by8 cases

This text of 654 S.W.2d 600 (Bankers & Shippers Ins. v. Kildow) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bankers & Shippers Ins. v. Kildow, 654 S.W.2d 600, 9 Ark. App. 86, 1983 Ark. App. LEXIS 862 (Ark. Ct. App. 1983).

Opinion

Melvin Mayfield, Chief Judge.

This is an appeal from the order of the circuit court dismissing an action for declaratory judgment.

Bankers & Shippers Insurance Company issued a policy of insurance to Julian Martin, Inc., covering Martin’s liability for injury and damage caused by the ownership, maintenance, or use of any covered vehicle. The policy also provided that Bankers would defend any suit against Martin seeking to recover such damages, and that anyone using such a vehicle with Martin’s permission was also an insured.

Martin, which is engaged in the freight-hauling business, instructed one of its employees, Theodore Kildow, to pick up a load of freight at Madison, Wisconsin, and take it to Mobile, Alabama, by the shortest major route. Bankers and Martin contend that Kildow violated those instructions by deviating from that route to come by his home in Arkansas, and during that deviation he wrecked Martin’s truck with five unauthorized passengers in it.

Alleging that one or more of the passengers were threatening litigation to recover damages for injuries received in the mishap, Bankers and Martin filed suit in chancery court asking for a declaratory judgment holding that neither of them have any liability to the passengers as a result of the occurrence.

Kildow and the passengers were made parties. Kildow filed an answer in which he asked that the complaint be dismissed because it did not “conform to the requirements established for obtaining relief under the Declaratory Judgment Act.” Three of the passengers filed pleadings in which they alleged chancery did not have jurisdiction, that Kildow was acting as an agent for Martin, that he was negligent, and that his negligence caused them injuries, and they asked for trial by jury and prayed for judgments in certain amounts against Kildow, Bankers, and Martin.

Upon motion by the passengers, the cause was transferred to circuit court, and upon motion of Bankers and Martin, over the objections of the passengers, the circuit court severed the declaratory judgment action from the tort action. The declaratory judgment action was then tried by the court without a jury, and after hearing testimony concerning the alleged deviation from scope of employment by Kildow, the judge entered an order containing the following pertinent paragraphs:

1. Plaintiffs seek a Declaratory Judgment to the effect that neither plaintiffs have any liability as a result of the actions of Theodore Kildow in the operation of the vehicle at the time of the one (1) vehicle collision resulting in personal injuries to Dewey Johnson, Jenny Mondy, Brenda Prater, Gene Hopkins and Susie Page.
2. That the Declaratory Judgment action should be dismissed.
It Is, Therefore, Considered, Ordered, Adjudged and Decreed, that the Declaratory Judgment sought is denied and the Declaratory Judgment action is dismissed.

On appeal, Bankers and Martin argue that the evidence clearly shows that the wreck occurred while Kildow had departed from his scope of employment and that they were entitled to a declaratory judgment holding that neither of them have any liability as a result of the occurrence. On the other hand, the appellees argue that the evidence made a question of fact for the jury to decide on that issue and that the appellants were not entitled to a declaratory judgment when the identical question was at issue in the tort suit between the parties.

We hold that the trial court was correct in dismissing the declaratory judgment action. Our act is the Uniform Declaratory Judgment Act, perhaps with minor modifications, see reporter’s notes to Civil Procedure Rule 57, and is codified as Ark. Stat. Ann. §§ 34-2501 — 2512 (Repl. 1962). It is intended to supplement ordinary causes of action, but not to supersede them. Mid-State Construction Co. v. Means, 245 Ark. 691, 434 S.W.2d 292 (1968). In 10A Wright, Miller & Kane, Federal Practice and Procedure, 729 (Civil 2d 1983), it is said:

The courts have held that “it is not one of the purposes of the declaratory judgments acts to enable a prospective negligence action defendant to obtain a declaration of non-liability.”

The above language was quoted in Frito-Lay, Inc. v. Dent, 373 F. Supp. 771 (N.D. Miss. 1974), and in UNC Resources, Inc. v. Benally, 518 F. Supp. 1046 (D. Ariz. 1981).

Ark. Stat. Ann. § 34-2502, supra, which is section 2 of Act 274 of 1953 (our original declaratory judgment act) provides, however, that:

Any person interested under a deed, will, written contract or other writings constituting a contract, or whose rights, status, or other legal relations are affected by a statute, municipal ordinance, contract or franchise, may have determined any question of construction or validity arising under the instrument, statute, ordinance, contract, or franchise and obtain a declaration of rights, status or other legal relations thereunder.

When Act 274 of 1953 was passed, section 2 (Ark. Stat. Ann. § 34-2502) omitted all reference to contracts. As the history line to § 34-2502 indicates, Act 35 of 1957 amended section 2 of the original act to restore the contract references to section 2 so that § 34-2502 now reads as quoted above. This is discussed in the case of Equity Mutual Ins. Co. v. Southern Ice Co., 232 Ark. 41, 334 S.W.2d 688(1960), which also points out that the case of Lumbermen’s Mutual Casualty Co. v. Moses, 224 Ark. 67, 271 S.W.2d 780 (1954), held that our act, without any reference to contracts, did not authorize a declaratory judgment involving an insurance contract. After the amendment, however, the Equity Mutual case notes, contracts came within the purview of our act, and in USF&G Co. v. Downs, 230 Ark. 77, 320 S.W.2d 765 (1959), our Supreme Court rendered a declaratory judgment involving an insurance contract.

In the instant case, the real issue is whether Kildow was acting within the scope of his employment at the time of the occurrence. The problem, however, is whether it is proper to determine the issue about Kildow in this declaratory judgment action or to determine the whole matter in the pending tort suit. If it can be determined in this case, it is only because of Ark. Stat. Ann. § 34-2502, supra, which allows our courts to grant declaratory judgments involving contracts, since declaratory relief was unknown at common law and is permissible only by statutory authorization. 22 Am.Jur.2d Declaratory Judgment § 3 (1965).

In a similar case, with a similar statute, Florida held that no declaratory judgment should be granted. In Columbia Casualty Co. v. Zimmerman, 62 So.2d 338 (Fla. 1952), where the court said the question was “whether or not Mary Yates was driving the automobile with the knowledge and consent of the owners,” the opinion states:

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Bluebook (online)
654 S.W.2d 600, 9 Ark. App. 86, 1983 Ark. App. LEXIS 862, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bankers-shippers-ins-v-kildow-arkctapp-1983.