Betty Jane Briney v. United States Fidelity & Guaranty Insurance

CourtMississippi Supreme Court
DecidedJuly 16, 1996
Docket96-CA-00903-SCT
StatusPublished

This text of Betty Jane Briney v. United States Fidelity & Guaranty Insurance (Betty Jane Briney v. United States Fidelity & Guaranty Insurance) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Betty Jane Briney v. United States Fidelity & Guaranty Insurance, (Mich. 1996).

Opinion

IN THE SUPREME COURT OF MISSISSIPPI NO. 96-CA-00903-SCT BETTY JANE BRINEY, THE SUCCESSOR ADMINISTRATRIX OF THE ESTATE OF JOY MARIE MANUEL, DECEASED v. UNITED STATES FIDELITY & GUARANTY COMPANY

DATE OF JUDGMENT: 07/16/96 TRIAL JUDGE: HON. ROBERT LEWIS GIBBS COURT FROM WHICH APPEALED: HINDS COUNTY CIRCUIT COURT ATTORNEY FOR APPELLANT: JOHN ROBERT WHITE ATTORNEYS FOR APPELLEE: KIMBERLY R. HERRING THOMAS Y. PAGE NATURE OF THE CASE: CIVIL - WRONGFUL DEATH DISPOSITION: REVERSED AND REMANDED - 6/4/98 MOTION FOR REHEARING FILED: MANDATE ISSUED: 6/25/98

EN BANC.

SULLIVAN, PRESIDING JUSTICE, FOR THE COURT:

¶1. The Hinds County Circuit Court denied a Motion To Vacate Order Allocating Settlement Amounts brought by Betty Briney, the Successor Administratrix of the estate of Joy Manuel, based on the finding that the motion was not made within a reasonable time. To the contrary, we find that the motion was made within a reasonable time and Rule 60(b)(6) provides the authority for us to reverse and remand the denial of Briney's motion to vacate the Order in order to promote the ends of justice.

¶2. The Order Briney is seeking to have vacated resulted from a personal injury claim and a wrongful death action brought on behalf of Joy Manuel who died as a result of a motor vehicle accident on March 1, 1990, in Terry, Mississippi. Both Joy and Donald Manuel were residents of the State of California. The presumed husband of Joy, Donald Manuel, brought an action seeking damages for his own personal injuries and for his wife's wrongful death resulting from the accident. After discovery was conducted, a question arose about the validity of Donald and Joy's marriage and a motion for partial summary judgment was filed by both defendants raising this issue. After an estate was opened for Joy Manuel with a County Administrator appointed as Administratrix of her estate, the complaint was amended on July 2, 1992, and filed by both Donald and Joan Salter, the Administratrix of Joy's estate.

¶3. During the pendency of the litigation, United States Fidelity & Guaranty Co. (hereafter USF&G), the worker's compensation insurer of Hawkeye Refrigerated Service Corp., the employer of Donald and Joy at the time of the accident, filed a notice of lien under Iowa Code Section 85.22 for compensation and death benefits that were paid to Donald. It was established that USF&G had paid Donald $117,930.00 in compensation benefits and $38,866.34 in death benefits as Joy's surviving spouse. An Order permitting USF&G to intervene in the suit was signed on April 6, 1993, and USF&G filed its complaint on May 5, 1993, seeking to exercise its lien for workers' compensation benefits paid under Iowa law.

¶4. On the morning of trial on May 10, 1993, one of the defendants, Lavergne Transport, Inc, announced it had reached a settlement in the amount of $40,000 and on the morning of the fourth day of trial the plaintiffs, Donald and Salter, informed the court that they had agreed to settle the case with the other defendant, Geiselbreth, for the total sum of $150,000. On August 11, 1993, the Chancery Court of Hinds County, Mississippi, entered an Order approving the settlement of the doubtful claim for the wrongful death of Joy Manuel. Salter was ordered to request the circuit court to allocate an appropriate amount of settlement funds to Joy's estate. She was further ordered to receive the funds from the registry of the Circuit Court and hold funds until further order by the chancery court concerning the distribution of the funds. On November 24, 1993, the circuit court entered its Order Allocating Settlement Amount which is summarized in the following chart.

SETTLEMENT TO DONALD MANUEL TO ESTATE OF JOY MANUEL

LAVERGNE $20,000.00 $ 20,000.00

GEISELBRETH $50,000.00 $100,000.00

$70,000.00 $120,000.00

DISTRIBUTION TO DONALD MANUEL TO ESTATE OF JOY MANUEL

Attorneys' Fees -28,000.00 - 48,000.00

Expenses -11,628.59 - 7,949.67

$30,371.41 $64,050.33

TO: USF&G -30,371.41 -38,866.34

00.00 $25,866.34 The balance of $25,866.34 was paid into the registry of the Hinds County Chancery Court and process was issued to Donald, Joy's father, mother, sisters, and brothers for a determination of Joy's rightful heirs.

¶5. The case to determine Joy's rightful heirs for purposes of determining who is entitled to the proceeds of the wrongful death settlement was tried on May 30, 1995. The case resulted in an order that determined that the marriage between Joy and Donald was void ab initio because Joy had still been legally married to James Anderson at the time of her marriage to Donald, and that Joy Manuel's sole heirs are Joy's mother, father, and siblings. Subsequently on February 23, 1996, the Chancery Court issued an Order appointing Joy's mother, Betty Briney, as Successor Administratrix to the estate of Joy Manuel. On March 6, 1996, Briney filed her motion in the Circuit Court of Hinds County, Mississippi to vacate the Order Allocating Settlement Amounts that was entered on November 24, 1993. The motion alleged that it was unlawful under Iowa law to allow USF&G to satisfy a portion of its lien against Donald Manuel by paying USF&G the sum of $38,866.34 from the proceeds rightfully belonging to the estate of Joy Manuel when the estate never received any money from USF&G. Instead of deciding whether to vacate the Order based on the merits of the case, Judge Gibbs found that the motion was controlled by Rule 60(b) of the Mississippi Rules of Civil Procedure and entered an Order on July 16, 1996, denying Briney's motion finding that it was not timely filed. The Court specifically stated, "that the Successor Administratrix has shown no basis for a three year delay in attacking the Order of this Court." Aggrieved of that decision, Briney perfected this appeal.

STATEMENT OF THE LAW

I. MAY USF&G SATISFY ITS SUBROGATION LIEN AGAINST DONALD MANUEL BY TAKING MONEY FROM JOY MANUEL'S ESTATE, TO WHICH IT NEVER PAID ANY MONEY?

¶6. Briney argues that under Iowa law, USF&G had no right of subrogation from Joy's estate since USF&G paid no money to the estate. She argues that the effect of allowing USF&G to take $38, 866.34 from the settlement proceeds allocated to Joy's estate as partial repayment of benefits it paid to Donald Manuel was to take money away from the rightful heirs who never received any money from USF&G. USF&G claimed its rights to subrogation under Iowa Code Ann. § 85.22 (West 1996) . This section in relevant part states:

1. If compensation is paid the employee or dependent or the trustee of such dependent under this chapter, the employer by whom the same was paid, or the employer's insurer which paid it, shall be indemnified out of the recovery of damages to the extent of the payment so made . . .and shall have a lien on the claim for such recovery and the judgment thereon for the compensation for which the employer or insurer is liable.

Iowa Code Ann. § 85.22 (West 1996) (emphasis supplied). Briney cites to two Iowa Supreme Court cases which interpret this language. The Iowa Supreme Court held "that the employer's right to withhold benefits under section 85.22(1) extends only to that portion of the wrongful death proceeds actually paid or legally available to the person entitled to receive the workers' compensation benefits." Bertrand v. Sioux City Grain Exch., 419 N.W. 2d 402, 404 (Iowa 1988).

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Betty Jane Briney v. United States Fidelity & Guaranty Insurance, Counsel Stack Legal Research, https://law.counselstack.com/opinion/betty-jane-briney-v-united-states-fidelity-guarant-miss-1996.