Cline v. Homouth CA3

235 Cal. App. 4th 699, 185 Cal. Rptr. 3d 470, 2015 Cal. App. LEXIS 273
CourtCalifornia Court of Appeal
DecidedFebruary 27, 2015
DocketC073999
StatusUnpublished
Cited by8 cases

This text of 235 Cal. App. 4th 699 (Cline v. Homouth CA3) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cline v. Homouth CA3, 235 Cal. App. 4th 699, 185 Cal. Rptr. 3d 470, 2015 Cal. App. LEXIS 273 (Cal. Ct. App. 2015).

Opinions

Opinion

DUARTE, J.

Plaintiff Ronald Lee Cline was severely injured when his motorcycle collided with a turning car driven by a teenager with a provisional license. He settled with the driver and the driver’s parents for their $100,000 insurance policy limit. Cline executed a release that released the driver and his parents “and any other person, corporation, association, or partnership responsible in any manner or degree” for the accident.

Cline subsequently sued defendant Berniece Delores Homuth, the driver’s grandmother and the sole adult in the car with him at the time of the collision, for negligent supervision. Homuth raised the release as an affirmative defense. She moved for summary judgment; the trial court denied the motion. A court trial followed, centering on the validity of the release and whether Homuth was an intended third party beneficiary of the release. Relying on Rodriguez v. Oto (2013) 212 Cal.App.4th 1020 [151 Cal.Rptr.3d [702]*702667] (Rodriguez), the trial court found the release “unambiguously expresses a mutual intent to benefit a class of persons of which [Homuth] is a member” and that Homuth was entitled to enforce it.

Cline appeals from the judgment in favor of Homuth. He contends the extrinsic evidence demonstrates that Homuth is not an intended beneficiary of the release. As we explain, Cline failed to provide sufficient evidence to counter Homuth’s showing that she was an intended beneficiary of the release. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

The Accident

On April 9, 2007, Colby Homuth (Colby), who had a provisional driver’s license requiring immediate supervision by an adult (Veh. Code, § 12814.6), was driving his parents’ car on O’Byrnes Ferry Road. Homuth, his grandmother, was the sole passenger in the car. As Colby turned left onto Pheasant Run Drive, Cline’s motorcycle approached and struck the back of the car. The traffic collision report concluded Colby caused the accident. Cline was severely injured, suffering numerous broken bones.

Settlement and Release

Colby’s parents, Wade and Leslie Homuth, had automobile insurance with California State Automobile Association (CSAA). The policy’s limit for bodily injury claims was $100,000 per person. Cline’s attorney, Gerald Emanuel, made a demand to Angelo Rodriguez, CSAA’s claims representative, for the policy limit.

Rodriguez knew Cline’s medical expenses exceeded the policy limits and believed payment of the policy limit was appropriate. On March 26, 2008, Cline signed a settlement agreement with CSAA. The “Release of All Claims” was a printed form with blanks for the name of the party signing and the parties released, as well as the amount of compensation and the date and location of the accident. The portions filled in were in all capitals. The release stated in part: “To be executed by RONALD CLINE. The undersigned do(es) hereby acknowledge acceptance of ONE HUNDRED THOUSAND DOLLARS ($100,000.00) Payable to RONALD CLINE & GERALD E. EMANUEL AS ATTORNEY AND MEDICARE which payment is accepted in full compromise settlement and satisfaction of and as sole consideration for the final release and discharge of all actions, claims and demands whatsoever, that now exist, or may hereafter accrue against LESLIE & WADE HOMUTH; COLBY HOMUTH and any other person, corporation, [703]*703association or partnership responsible in any manner or degree for injuries to the person and property of the undersigned, and the treatment thereof, and the consequences flowing therefrom, as a result of an accident, casualty or event which occurred on or about the 9TH day of APRIL 2007 at or near STR: O’BYRNES FAIRY [sic] RD CITY, COUNTY: COPPEROPOLIS, CALA-VERAS ST: CA and for which the undersigned claims the above named persons or parties are legally liable in damages which legal liability and damages are disputed and denied . . . .” Cline also waived the provisions of Civil Code section 1542 relating to unknown claims.

The Lawsuit

Cline filed a lawsuit against Homuth for damages based on negligent supervision. She moved for summary judgment, contending she was released from all claims by the unambiguous “any other person” language of the release.

The trial court denied the motion, finding a triable issue of fact as to whether the release was intended to benefit Homuth. The court found Cline had submitted evidence showing he had no such intent. This evidence included declarations from Cline and his attorney stating that he would not have signed the release if it had named Homuth as a releasee, that neither Cline nor his counsel intended to release Homuth, and that although Homuth was known by the parties to the settlement, she was not named in the release.

Homuth moved to have the trial court determine the legal effect of the release. The court granted that motion.

The Trial

Portions of Rodriguez’s deposition were admitted at trial, as he was unavailable. Rodriguez testified he needed management approval to change the terms of the release; in 13 years working in claims, he had seen changes to the form only once or twice. He had completed the blanks on the release form and chose to include only the named and covered insureds, Wade, Leslie. and Colby Homuth. He described the form release: “In the context of the language that’s used in the industry we are releasing the world, if you will.” He also described the language as “pretty self-explanatory.” Rodriguez explained he did not consider adding Homuth’s name to the release because she was not a named or covered insured. His duty was only to the insureds and he had authority to settle only as to them. There was no discussion, negotiation, or consideration of an intention to release others or to add Homuth’s name to the release. Rodriguez was aware that Homuth was in the car at the time of the accident.

[704]*704Emanuel — Cline’s attorney at the time of the release — testified that about 90 percent of the personal injury cases he handled were resolved by a release and dismissal. He had altered the language of a release only when the numbers were wrong. There was no written communication about excluding Homuth from the release and Emanuel never told anyone representing Colby of the intent to exclude Homuth. Emanuel had no experience in attempting to negotiate the language of a boilerplate release and he had never heard of anyone negotiating a boilerplate release.

Emanuel testified he investigated a possible claim against the state or county for the road construction and intended to investigate Homuth. He never expressed an intention to release Homuth, but Cline would not have signed the release if Homuth had been named. Emanuel did not believe the boilerplate release applied to Homuth. He was aware of her potential liability when the release was signed.

Cline testified he signed the release while on heavy medication and did not really understand it. He intended to sue Homuth, the city, and the construction site. He had discussed the release with a friend and believed he could still pursue others. He told his attorney other people were responsible for the accident, and did not intend to release those not named. He would not have signed the release if it had named Homuth. Cline had no documents showing his intent to sue others.

Clinton Miller testified as an expert on insurance claims.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Wang v. Go CA1/3
California Court of Appeal, 2024
Deerpoint Grp., Inc. v. Agrigenix, LLC
345 F. Supp. 3d 1207 (E.D. California, 2018)
Otay Land Co. v. U.E. Limited
California Court of Appeal, 2017
Otay Land Co. v. U.E. Ltd., L.P.
225 Cal. Rptr. 3d 119 (California Court of Appeals, 5th District, 2017)
Iqbal v. Ziadeh
10 Cal. App. 5th 1 (California Court of Appeal, 2017)
Tabares v. EquiTrust Life Ins. Co. CA2/7
California Court of Appeal, 2015
People v. Finney CA2/4
California Court of Appeal, 2015

Cite This Page — Counsel Stack

Bluebook (online)
235 Cal. App. 4th 699, 185 Cal. Rptr. 3d 470, 2015 Cal. App. LEXIS 273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cline-v-homouth-ca3-calctapp-2015.