Gulf Insurance v. Cottone

2006 NMCA 150, 148 P.3d 814, 140 N.M. 728
CourtNew Mexico Court of Appeals
DecidedNovember 2, 2006
Docket25,354
StatusPublished
Cited by15 cases

This text of 2006 NMCA 150 (Gulf Insurance v. Cottone) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulf Insurance v. Cottone, 2006 NMCA 150, 148 P.3d 814, 140 N.M. 728 (N.M. Ct. App. 2006).

Opinion

OPINION

BUSTAMANTE, Chief Judge.

{1} This case requires us to consider the circumstances under which a tortfeasor’s insurer may “step into the shoes” of a tort victim to later assert claims of contribution, indemnification, or subrogation against other parties who assertedly bear some responsibility for the victim’s injuries.

{2} Brenda Rapp was severely injured in a chain reaction motor vehicle accident. Rapp brought suit against only one of the parties involved in the accident. Gulf Insurance Company (Gulf) settled the suit on behalf of its insured and is now pursuing reimbursement from certain others involved in the accident. Gulf argues that it is entitled to reimbursement as a matter of pure equitable subrogation, or because its insured is jointly and severally liable with the others involved in the accident, or because Rapp assigned her causes of action against the others in the release she signed as part of the settlement. Finding that there is no basis for Gulfs claims, we affirm the district court’s grant of summary judgment dismissing Gulfs action.

BACKGROUND AND PROCEDURAL HISTORY

{3} The facts are straightforward. A tanker truck owned by Gulfs insured, Richard Lobrado, d/b/a El Rio Trucking, Inc., and driven by Rogelio Sarinana collided with a vehicle driven by Jaylene Armstrong at the intersection of State Road 202 and U.S. 70 in Roosevelt County, New Mexico. The truck was carrying liquid carbon dioxide and the collision caused the carbon dioxide to leak from the truck, forming a fog or cloud around the collision site, further obstructing visibility on an already foggy day.

{4} The resulting collisions involved seven vehicles. Shortly after the collision between the truck and Armstrong, Defendant Cottone came upon the accident scene, hit something, and thereafter stopped in the roadway. The second car, driven by Rapp, then collided with Cottone, whose vehicle was obstructing the roadway. Approaching the scene, a third vehicle, driven by Atkins, was struck by a fourth car, driven by Defendant Sandoval. Atkins’ vehicle then struck Rapp’s vehicle, shattering the rear window of Rapp’s car. The fifth ear, driven by Defendant Nutt, also struck the vehicle driven by Atkins and the vehicle driven by Rapp. A sixth vehicle driven by Defendant Mingle, then struck Atkins’ vehicle. Finally, Defendant Cootz came upon the scene and collided with two of the vehicles.

{5} All of the individuals involved in the various collisions were generally exposed to the liquid carbon dioxide. After the rear window of her car was broken, Rapp got out of the ear and was directly exposed to the liquid carbon dioxide. She sustained severe burn injuries. Rapp filed a lawsuit against Gulfs insured seeking damages for her injuries. Rapp did not join any of the other drivers in her original suit, and Gulf did not seek — at least initially — to have any of the other drivers joined in Rapp’s suit. Gulf settled Rapp’s lawsuit for $1,700,000. Rapp entered into a release of all claims with Gulf, releasing Gulfs insured of any further liability in exchange for the settlement amount. The specifics of the release are discussed in more detail later in this opinion. After settling with Rapp, Gulf filed suit against the other drivers-with the exception of Armstrong — for negligence, asserting that it was “subrogated by operation of law to Rapp’s claims against the Defendants.” 1 Defendants responded by filing motions to dismiss and motions for summary judgment. The district court treated the motions as motions for summary judgment, and granted all the motions filed by Defendants, dismissing this case with prejudice. Gulf appeals.

{6} Gulf raises three issues on appeal, arguing that the district court erred in granting summary judgment in favor of Defendants because: (1) Gulf paid the claims of the “original creditor” Rapp, and thus is classically subrogated to her rights; (2) Gulf can seek indemnifieation/eontribution from Defendants for the “enhanced damages” they caused under New Mexico’s successive tortfeasor doctrine; and (3) El Rio Trucking was engaged in an inherently dangerous activity and thus joint and several liability applies permitting Gulf to seek subrogation/contribution from Defendants. As a subargument of its successive tortfeasor theory, Gulf asserts that the release signed by Rapp acted to release all Defendants and thus effected an assignment to it, or created a right of subrogation in it, as to all of Rapp’s claims against Defendants.

STANDARD OF REVIEW

{7} Although some Defendants filed motions to dismiss and others filed motions for summary judgment, we treat the district court’s order as a grant of summary judgment. Knippel v. N. Commc’ns, Inc., 97 N.M. 401, 402, 640 P.2d 507, 508 (Ct.App.1982) (stating that “[wjhere matters outside the pleadings are considered on a motion to dismiss for failure to state a claim, the motion becomes one for summary judgment”). “Summary judgment is appropriate where there are no genuine issues of material fact and the movant is entitled to judgment as a matter of law.” Self v. United Parcel Serv., Inc., 1998-NMSC-046, ¶ 6, 126 N.M. 396, 970 P.2d 582. “The issue on appeal is whether [Defendants were] entitled to [judgment] as a matter of law. We review these legal questions de novo.” Id. We begin with subrogation.

SUBROGATION

{8} Gulf asserts that the settlement agreement between it and Rapp settled all the claims Rapp had against all Defendants. Gulf contends that, having settled the claims on behalf of all Defendants, it may now step into the shoes of Rapp and pursue claims against Defendants for their portion of liability for Rapp’s injuries. Gulf bases its argument on an expansive version of the doctrine of equitable subrogation. In Gulfs view, subrogation involves the substitution of one person in place of another with the purpose of allowing responsibility to be spread equitably among all responsible parties. Gulf specifically challenges the notion that “subrogation is limited to permitting an insurer to step into the shoes of its insured.” For the reasons set forth later in this opinion, we conclude that Gulf is not subrogated to the rights of Rapp, and may not seek any type of recoupment from Defendants.

{9} The most common instance of subrogation recognized by New Mexico law is that between an insurer and its insured, allowing the insurer to recover payments against the person who caused the loss. See Safeco Ins. Co. of Am. v. U.S. Fid. & Guar. Co., 101 N.M. 148, 149, 679 P.2d 816, 817 (1984) (“[A]n insurer who pays the claim of its insured ... is deemed to be subrogated by operation of law to recovery of its payments against the person who caused the loss.”). The doctrine of subrogation “allows an insurer who has fully compensated the insured to step into the shoes of the insured and collect what it has paid from the wrongdoer.” Amica Mut. Ins. Co. v. Maloney, 120 N.M. 523, 527, 903 P.2d 834, 838 (1995).

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Cite This Page — Counsel Stack

Bluebook (online)
2006 NMCA 150, 148 P.3d 814, 140 N.M. 728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-insurance-v-cottone-nmctapp-2006.