Henley v. State Farm Mutual AutoMobile Insurance Co.

199 So. 3d 60, 2015 Ala. Civ. App. LEXIS 278, 2015 WL 7889633
CourtCourt of Civil Appeals of Alabama
DecidedDecember 4, 2015
Docket2140560
StatusPublished

This text of 199 So. 3d 60 (Henley v. State Farm Mutual AutoMobile Insurance Co.) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henley v. State Farm Mutual AutoMobile Insurance Co., 199 So. 3d 60, 2015 Ala. Civ. App. LEXIS 278, 2015 WL 7889633 (Ala. Ct. App. 2015).

Opinions

DONALDSON, Judge.

Sandra Henley filed a complaint in the Jefferson Circuit Court (“the trial court”) against State Farm Mutual Automobile Insurance Company (“State Farm”) seeking underinsured-motorist benefits under a policy of insurance issued by State Farm. A jury trial commenced, but the trial court entered a judgment as a matter of law (“JML”) in favor of State Farm during Henley’s presentation of her case. A JML cannot be entered unless a party has been fully heard on an issue. See Rule 50(a)(1), Ala. R. Civ. P. Because Henley had not been “fully heard” on the issue that led to the entry of the JML, we reverse the judgment and remand the cause for further proceedings.

Facts and Procedural History

While Henley was stopped at a traffic light on December 16, 2009, an automobile operated by Charles Barbour, Jr., struck the automobile operated by Henley (“the collision”). Henley .claimed that, she suffered damage as a- result of the collision, including personal injuries and property damage. At the time of the collision, Henley had an automobile-insurance policy with. State Farm that included underin-sured-motorist benefits. Barbour also was insured by State Farm for his liability for the collision. Henley and Barbour reached a settlement, and, on December 14, 2011, Henley executed a release (“the release”) in exchange for $50,000 in consideration. The release states, in part:

[62]*62“Undersigned hereby releases and forever discharges Charles Barbour and Charles Barbour Jr., their heirs, executors, administrators, agents and assigns, and all other persons, firms, or corporations liable or, who might be claimed to be liable, ... from any and all claims, demands, damages, actions, causes of action or suits of any kind or nature whatsoever, and particularly on account of all injuries, known and unknown, both to person and property, which have resulted or may in the future develop from an accident which occurred on or about the 16th day of December, 2009, ... at or near Gardendale, Alabama.
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“Undersigned hereby declares that the terms of this settlement have been completely read and are fully understood and voluntarily accepted for the purpose of making a full and final compromise adjustment and settlement of any and all claims, disputed or otherwise, on account of the injuries and damages above mentioned, and for the express purpose or precluding forever any further or additional claims arising out of the aforesaid accident.”

The release was signed by Henley and the attorney representing her at that time.

Henley later obtained different counsel and filed a one-count complaint against State Farm on March 17, 2014. In her complaint, Henley claimed that Barbour had caused the collision; that Barbour was an underinsured motorist, i.e., the driver of an “uninsured motor vehicle” as defined by § 32-7-23(b), Ala.Code 1975;1 that her policy of insurance with State Farm provided underinsured-motorist coverage; and that State Farm had breached the insurance policy by failing to pay underin-sured-motorist benefits to her pursuant to the terms of the policy. Henley demanded a jury trial.

State Farm filed an answer generally denying the allegations in the complaint and asserting, among other defenses, the affirmative defenses of contributory negligence and “release, accord, and satisfaction.”

On August 1, 2014, Henley filed a motion for a partial summary judgment. In the motion, Henley asserted that Barbour’s negligence for the collision was undisputed and that the only issues to be tried were whether Henley’s claimed damages were caused by Barbour’s negligence and “whether or not [Henley’s] damages exceed that of the sum total tendered by [State Farm] on behalf of ... Barbour.” The record does not indicate that State Farm filed a response to the motion for a partial summary judgment. After conducting a hearing, the trial court entered a partial summary judgment on October 1, 2014. In its written judgment, the trial court found “that a third party motorist was the at fault party as a matter of law, and also that [Henley] was not contribu-torily negligent. The only issues which remain outstanding for the trier of fact are that of causation and damages.” (Emphasis added).

A trial began on February 9, 2015, before a jury. On direct examination, Henley testified regarding, among other things, the collision and the injuries and damage she claimed to have sustained as a [63]*63result of the collision. During the cross-examination of Henley by State Farm’s counsel, a letter with the release attached was introduced as an exhibit. Henley objected to State Farm’s attempts to question Henley about the terms of the release. Among other arguments, Henley asserted that any issue as to whether the release absolved State Farm of liability for the payment of underinsured-motorist benefits was not properly before the jury because the partial summary judgment had specifically limited the issues for trial to causation of Henley’s alleged injuries and the extent of the damages, if any, to which she was entitled. Henley also argued that if the issue was properly before the jury, she should be permitted to present evidence indicating that she had not intended to release State Farm from paying underin-sured-motorist benefits under her policy of insurance by signing the release.

While Henley was still testifying, State Farm moved for the entry of a JML based on the release. After hearing arguments of counsel, the trial court expressed its intent to grant State Farm’s motion over Henley’s objections. The jury was dismissed. Although Henley was not permitted to present evidence regarding her understanding of the release and her intent in signing the release, she was permitted to make an offer of proof outside the presence of the jury.

On February 12, 2015, the trial court entered a JML in favor of State Farm and against Henley. In the JML, the trial court stated, in part:

“During the course of the trial of this case, the Court admitted into evidence Defense Exhibit No. 14, which is a general release signed by [Henley] on December 14, 2011. The release contained no reservation of rights by [Henley] to proceed against her underinsured motorist insurance carrier. [State Farm] moved in open court for judgment as a matter of law citing the release as grounds.”

Following the entry of the JML, Henley moved to vacate the JML and for a new trial pursuant to Rule 59, Ala. R. Civ. P. Henley asserted that the effect of the release was not an issue to be determined during the jury trial and that she had not been prepared to address the effect of the release because the holding of the partial summary judgment limited the issues to be addressed at trial. Henley also argued that the release did not absolve State Farm from paying underinsured-motorist benefits. The trial court conducted a hearing on Henley’s motion. A transcript of that hearing is not contained in the record. On March 16, 2015, the trial court entered an order denying Henley’s post-judgment motions. On March 24, 2015, Henley filed a notice of .appeal to the Supreme Court of Alabama, which transferred the appeal to this court pursuant to § 12-2-7, Ala.Code 1975.

Discussion

Among other arguments, Henley asserts that the trial court improperly entered the JML on a ground that had been precluded from consideration during the jury trial by the partial summary judgment.

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Cite This Page — Counsel Stack

Bluebook (online)
199 So. 3d 60, 2015 Ala. Civ. App. LEXIS 278, 2015 WL 7889633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henley-v-state-farm-mutual-automobile-insurance-co-alacivapp-2015.