Ex parte Alfa Mutual Insurance Co.

212 So. 3d 915, 2016 Ala. LEXIS 73
CourtSupreme Court of Alabama
DecidedJune 10, 2016
Docket1141038
StatusPublished
Cited by7 cases

This text of 212 So. 3d 915 (Ex parte Alfa Mutual Insurance Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ex parte Alfa Mutual Insurance Co., 212 So. 3d 915, 2016 Ala. LEXIS 73 (Ala. 2016).

Opinion

SHAW, Justice.

Alfa Mutual Insurance Company (“Alfa”), the defendant below, petitions this Court for a writ of mandamus directing the St. Clair Circuit Court to vacate its order denying, and to enter an order granting, Alfa’s motion to strike the amended complaint filed by the plaintiffs, Ronald Gene Lang and Mary F. Lang, in connection with a dispute arising from a farm-owner’s policy of insurance issued to the Langs by Alfa. We grant the petition and issue the writ.

Facts and Procedural History

In 1984, the Langs purchased a farm-owner’s policy from Alfa. At the time the policy was originally issued, it covered three structures identified in the policy: a tenant dwelling, a pump house, and a 1,000-square-foot barn. Following the purchase of the policy, the Langs demolished the existing 1,000-square-foot barn and, in 1994, constructed a new 1,600-square-foot “pole barn with a metal roof.” Pet. Exh. L, at 4. That same year, the pole barn sustained wind damage for which the Langs submitted a claim and were paid by Alfa under the policy.

The Langs then rebuilt the damaged pole barn and, in 1994 or 1995, also constructed a second 3,500-square-foot barn. The Langs assert that, at or around that same time, they orally requested that their Alfa agent, Jim Shigley, during one of his purportedly regular visits to the Langs’ farm, add both bams to the Langs’ existing coverage and that Shigley responded with a promise that he would “take care of it.” Pet. Exh. 0. Also in 1995, the Langs completed an application to renew their policy in which they requested that coverage for the original 1,000-square-foot barn be deleted and coverage on the pump house be increased by $1,000; the application, however, did not include a written request adding coverage for the two new barns. Similarly, the declaration issued in 2001 in connection with the Langs’ continued policy renewal reflected coverage for only two structures on the Langs’ farm: the tenant dwelling and the pump house. Although they were not specifically able to recall having received renewed declarations with their corresponding billing statements, the Langs do not appear to argue that they did not.

In 2002, the Langs again completed a written application for renewal of their policy in which they requested that coverage on the pump house be deleted and coverage on the tenant dwelling increased. The corresponding declaration page reflects those changes and indicates that the only remaining structure covered by the policy was the tenant dwelling. In 2006, the Langs sold the tenant dwelling. In connection with that sale, the Langs maintain that they telephoned Shigley to orally request that the tenant dwelling be deleted from their policy coverage; however, the Langs never received written confirmation of the deletion and the amount of their premium payments did not change. The declaration pages issued in connection with the Langs’ policy renewals in the ensuing years show that no change to the covered structures was ever effected and that, instead, as of 2013, coverage in the amount of $30,000 for the tenant dwelling—and only the tenant dwelling—remained.

In March 2013, both barns located on the Langs’ farm allegedly suffered storm damage. Following the Langs’ notification of Alfa of the barn-related claim, Alfa denied the request for payment. Specifically, Alfa notified the Langs’ attorney by letter dated April 3, 2013, that a review of the Langs’ policy revealed “no record of [917]*917coverage for the barn in which [the Langs had] claimed damage.” Pet. Exh. O.

Thereafter, a dispute arose between the Langs and Alfa as to whether the Langs’ policy afforded coverage for the two barns located on the Langs’ farm. On April 18, 2013, the Langs sued Alfa, alleging bad-faith failure to pay, bad-faith failure to investigate, and breach of contract. In response, Alfa moved to “dismiss” the Langs’ complaint on the ground that, pursuant to the language of the Alfa policy, “Barns, Outbuildings and Other Farm Structures” were covered only where “a Limit is shown in the Declarations for the specifically described property.” Pet. Exh. B, at 3. More specifically, Alfa noted that the declarations in the Langs’ policy included neither a “limit” relating to nor a specific description of any such farm structure excepting the tenant dwelling; thus, Alfa argued, the barn-damage claim was clearly not covered by the Alfa policy. The trial court denied both Alfa’s motion and a subsequent request that the trial court reconsider that denial. Pet. Exh. D, at 1.

According to Alfa, at the hearings conducted by the trial court on the motion to dismiss, “counsel for the Langs argued theories of liability that were not stated in the Complaint.” Pet., at 2. Therefore, in an e-mail message dated September 11, 2013, Alfa’s counsel inquired of the Langs’ attorney whether the Langs planned to amend their original complaint and, if so, requested that such an amendment be “promptly” filed so that Alfa might address the amendment in its answer. Pet. Exh. Q. Apparently, the Langs’ attorney did not respond, and Alfa filed its answer to the original complaint. The Langs’ deposition testimony, subsequently taken in May 2014, revealed the Langs’ acknowledgment that the barns were not included among the insured structures identified on the declarations page and “[t]hat’s what [they are] saying is the problem.” Pet. Exh. Q.

In September 2014, again via e-mail, Alfa inquired of the Langs’ attorney, in connection with its preparations to file a motion seeking a summary judgment, whether the Langs intended to depose Shigley. The Langs’ counsel responded in the affirmative and promised to provide, by the following week, possible dates for that deposition. Further communications between the parties in October 2014, however, revealed that Shigley’s deposition was never scheduled. Apparently unbeknownst to Alfa, Shigley, who had retired, died in September 2014.

In January 2015, Alfa notified the Langs’ attorney that, despite the fact that Shigley had not been deposed, it was, in light of the impending trial date,1 proceeding with the filing of its summary-judgment motion. Thereafter, on January 19, 2015, Alfa filed a summary-judgment motion explaining the foregoing facts and attaching, among other exhibits, all policy-related documentation. In their response in opposition to that motion, the Langs appeared to raise fraud-based claims surrounding Shigley’s alleged misrepresentation to them that coverage for the barns had been added to the Langs’ policy.

The matter was set for trial and was continued on at least four occasions. Thereafter, in connection with further discovery efforts by the Langs, Alfa again asked whether the Langs intended to amend their original complaint and, again, allegedly received no response from the Langs’ attorney. On April 10, 2015—al-most exactly two years from the filing date [918]*918of their original complaint—the Langs filed an amended complaint, which added a fictitiously named defendant identified as the party “whose responsibility it was to inspect the property of the Langs, to insure their farm policy provide[d] adequate coverage and/or that the Langs were not paying for insurance to property which they did not own.” Pet. Exh. P. The Langs’ complaint, as amended, added new counts asserting negligence and fraudulent/reckless misrepresentation and an additional breach-of-contract claim.

In response, Alfa filed a motion to strike the amended complaint on numerous grounds, including that it had allegedly been filed in violation of Rule 15(a), Ala. R. Civ.

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Bluebook (online)
212 So. 3d 915, 2016 Ala. LEXIS 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ex-parte-alfa-mutual-insurance-co-ala-2016.