James v. Paul

49 S.W.3d 678, 2001 Mo. LEXIS 56, 2001 WL 569109
CourtSupreme Court of Missouri
DecidedMay 29, 2001
DocketSC 82867
StatusPublished
Cited by97 cases

This text of 49 S.W.3d 678 (James v. Paul) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James v. Paul, 49 S.W.3d 678, 2001 Mo. LEXIS 56, 2001 WL 569109 (Mo. 2001).

Opinions

HOLSTEIN, Judge.

State Farm Fire and Casualty Company (State Farm) appeals from a summary judgment entered against it, as garnishee, in a garnishment proceeding filed in Jackson County circuit court by Danny T. James. State Farm also challenges the denial of its own motion for summary judgment against James. The claim arises from a homeowner’s insurance policy held by Robert M. Paul. The case was transferred here after opinion by the Missouri Court of Appeals. Rule 83.02; Mo. Const. art. V, sec. 10. The trial court’s judgment is reversed, and the cause is remanded for proceedings consistent with this opinion.

I. FACTS

The basic facts of this case are not in dispute. Robert Paul and his wife, Kay-leen, filed for a dissolution of marriage. A hearing was scheduled in Jackson County circuit court for June 9, 1989. In the interim, the couple separated, and Kayleen retained the family home in Independence arid custody of their daughters. Paul moved to an apartment.

On the evening before the hearing, Paul, suspecting Kayleen of infidelity, traveled to her home after having consumed a considerable amount of beer. Once there, he peered through the living room window and witnessed his wife engaging in sexual relations with Danny James on the couch. Enraged, Paul tried unsuccessfully to break down the front door. Undaunted, he broke the living room window, but was injured in the process and was unable to enter. After retrieving a knife from his truck, Paul proceeded to the kitchen window. He broke the window and climbed into the house. He passed Kayleen, who was now in the kitchen, and proceeded to the living room, where he found James. Paul stabbed James in the abdomen three times. Both men were taken to the hospital but survived their injuries.

Paul was charged with first degree assault. He pleaded guilty to the offense on August 8, 1989. At the plea hearing, where Paul was represented by counsel, Paul admitted stabbing James. He indicated that he was pleading guilty because he was in fact guilty. When counsel interrogated Paul about whether he understood the constitutional rights he was waiving as well as the terms and conditions of the plea agreement, Paul replied that he did understand. The court reiterated these questions and asked Paul whether he was satisfied with his representation. Paul gave the same response and answered that he was satisfied with counsel’s performance. The court found Paul’s plea was made voluntarily and intelligently and that there was a factual basis supporting the assault charge. The court sentenced him to five years imprisonment but suspended the sentence, placing Paul on probation.

At the time of the stabbing, Paul had a homeowner’s insurance policy with State Farm, which also provided personal liability coverage. Section II, Coverage L, of the policy provided in relevant part:

If a claim is made or a suit is brought against an insured for damages because [681]*681of bodily injury or property damage to which this coverage applies, caused by an occurrence, [State Farm] will:
1. pay up to our limit of liability for the damages for which the insured is legally liable; and
2. provide a defense at our expense by counsel of our choice.

The word “occurrence” is defined in the policy as: “[A]n accident ... which results in ... bodily injury ... during the policy period.” Section II of the policy contained the following exclusions from liability coverage:

SECTION II EXCLUSIONS
COVERAGE L ... does not apply to:
(A) bodily injury or property damage
(1) which is either expected or intended by an insured; or
(2) to any person or property which is the result of willful or malicious acts of an insured.

Paul promptly informed State Farm of a potential claim and sought coverage for any claims James might assert against him. In a letter explaining that the incident was not an occurrence as defined in the policy and that it also triggered the exclusion provisions of the policy, State Farm denied coverage.

On February 9, 1992, James filed a personal injury claim in Jackson County circuit court. In his amended petition, he alleged careless and negligent conduct on the part of Paul. The specific conduct alleged was that while Paul was “incapacitated and unable to control the nature of his conduct,” he “inflicted a knife wound upon DANNY T. JAMES.” State Farm declined to defend. James and Paul then entered into a settlement agreement. It provided Paul would waive a jury trial, not present evidence and pay James $3,500. James agreed to limit any execution to the State Farm policy and further promised that if James was unsuccessful in the garnishment against State Farm, Paul would pay an additional $21,500.

Paul failed to appear for trial. The trial proceeded, and the court entered judgment for James in the amount of $285,000, prejudgment interest of $45,886.31, and costs. In its judgment entry, the court found, inter alia:

1. On June 8, 1989, [Paul] suffered from the medical conditions of alcoholism, adjustment disorder with depression, anxiety and obsessive disorder with the result of diminished mental capacity.
2. On June 8, 1989, [Paul] sustained physical injuries and was intoxicated, which, together with is [sic] medical disorders then affecting him, caused him to be in shock, and rendered [him] unable to control or appraise the nature of his conduct.
3. The violent events of June 8, 1989, during which [James] was injured were the result of sudden disinhibition and loss of control resulting from a combination of fragüe borderline personality structure, acute adjustment reaction to emotional distress and intoxication with alcohol.
4. At the time ... [Paul] was not capable of appreciating or comprehending the nature or consequences of his conduct. [Paul] did not intend or expect for [James] to be injured.

After obtaining the judgment, James filed a garnishment action against State Farm. State Farm continued to deny coverage. Both parties filed motions for summary judgment, which the court denied. Then, each party filed a renewed motion for summary judgment. The court denied State Farm’s motion and sustained that of James. In its order, the court ruled that the issue of coverage was resolved in the underlying tort action. State Farm, the [682]*682court explained, had a duty to defend Paul in the tort action, and its failure to do so amounted to a waiver of the coverage defense in the garnishment under the doctrine of estoppel in pais. Furthermore, the trial court held that the “law of the case doctrine” served to prevent State Farm from relitigating an issue it could have raised before in the initial personal injury action.1

State Farm appeals, asserting that neither the doctrine of equitable estoppel nor that of collateral estoppel bar it from litigating coverage in this garnishment action. Furthermore, it argues that the plea of guilty in the criminal case entitled it to summary judgment in the garnishment proceeding.

II. STANDARD OF REVIEW

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Cite This Page — Counsel Stack

Bluebook (online)
49 S.W.3d 678, 2001 Mo. LEXIS 56, 2001 WL 569109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-v-paul-mo-2001.