Joseph P. Jacobson v. Maryland Casualty Company

336 F.2d 72, 1964 U.S. App. LEXIS 4397
CourtCourt of Appeals for the Eighth Circuit
DecidedSeptember 2, 1964
Docket17321_1
StatusPublished
Cited by38 cases

This text of 336 F.2d 72 (Joseph P. Jacobson v. Maryland Casualty Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joseph P. Jacobson v. Maryland Casualty Company, 336 F.2d 72, 1964 U.S. App. LEXIS 4397 (8th Cir. 1964).

Opinion

MEHAFFY, Circuit Judge.

This appeal is from issuance of summary judgment favoring Maryland Casualty Company, appellee-plaintiff, in an action for losses allegedly suffered by Maryland, as surety, on certain indemnity agreements insuring performance of aerial photography contracts between the Joe Jacobson Flying Service and the United States Government.

Jurisdiction exists by reason of diversity of citizenship and controverted amount exceeding the statutory requirement.

We reverse on the inadequate record before us which fails to clearly reflect lack of a genuine issue of material fact.

The complaint alleged losses on bonds issued on applications therefor which were in effect contracts of indemnity, copies of which were subsequently designated in the record as Exhibits A, B, C, D and E. The complaint alleged losses on A, C, D and E and a credit on B. Jacobson signed application E as owner and signed A, B and C as indemnitor for Jacobson Flying .Service, Carl C. Hughes, owner. Jacobson did not sign application D. Exhibits A, B and C were signed subsequent to the issuance of D, and E was signed by Jacobson as principal prior to execution of contract D. i

On February 29, 1960, Maryland filed its request for admissions with the exhibits referred to above attached. On June 24, 1960 Jacobson answered this pleading admitting only that he- had signed A, B and C in blank and that demand had been made on him but never in the amounts stated in plaintiff’s request except for one item of $154.38, which represented an additional bond premium, not a loss, on Exhibit E.

On October 10, 1960, Maryland moved for summary judgment interlocutory in character under Rule 56(c), Fed.R.Civ.. P. Accompanying Maryland’s motion was a “Suggestion in Support” containing authorities and asserting inter alia that no substantial issue of fact existed, inasmuch as Jacobson admitted signing Exhibits A, B, C and E, all containing clauses making the indemnitor liable for all “former and subsequent bonds”, executed by the parties.

On February 16, 1961, Jacobson filed an amended answer which was a general denial, admitting only that his signature appeared on Exhibits A, B and C. Jacobson also interposed an affirmative defense with respect to D alleging that the loss there was occasioned by Maryland’s own fault in failing to timely provide Hughes its promised financial support to complete the principal contract. Further, Jacobson averred that he had no knowledge of the existence of D, unsigned *74 by him in any capacity, and that he was in fact absent from the United States for months prior and subsequent to its issuance.

On March 29, 1961, the late Judge R. Jasper Smith considered Maryland’s motion for summary judgment, granting its relief as to A, B and C, but denying its issuance as to D and E. 1

Thereafter on October 5, 1962 Jacobson filed a motion for stannary judgment also accompanied by a “Suggestion in Support”. Jacobson made no admissions in his motion but sought a favorable ruling as to liability on D which if granted would have reduced Maryland’s claims to an amount below the jurisdictional requirement.

On December 14, 1962, Judge Oliver decided the case on Jacobson’s motion for summary judgment by denying same, while ordering the parties to agree to a reinstatment of Maryland’s motion for summary judgment, or failing such agreement, ordering Maryland to file a new motion for summary judgment as welt as a precedent for formal order directing entry of judgment for plaintiff. The record next indicates that on December 26, 1962 the trial court entered judgment for Maryland in the full amount sued for with interest from July 1, 1957 plus attorney’s fees.

The mission of summary judgment is to allow the trial judge to dispose of a case in advance of a hearing on the merits, when the pleadings, depositions, answers to interrogatories, and admissions on file, together with any supporting affidavits, reveal that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law. Rule 56(c), Fed.R.Civ.P. Since the remedy is extreme and not to be used as a substitute for trial, any doubt as to the existence of a triable issue of material fact must be resolved against the party moving for summary judgment. United States v. Farmers Mut. Ins. Ass’n of Kiron, Iowa, 288 F.2d 560 (8th Cir. 1961), and cases there cited; Elbow Lake Coop. Grain Co. v. Commodity Credit Corp., 251 F.2d 633 (8th Cir. 1958).

Maryland had the burden of clearly establishing the lack of genuine issue of material fact. See Walling v. Fairmont Creamery Co., 139 F.2d 318 (8th Cir. 1943) and the cases collected' in Allied Mutual Ins. Co. v. Lysne, 324 F.2d 290, 293 (8th Cir. 1963). Maryland’s burden cannot be discharged unless the record upon which it moved reflected beyond question the lack of a genuine issue of material fact. The record falls short in this regard. The record is silent as to any contravention of Jacobson’s averment of the affirmative defense with respect to liability under contract D. Under this bond, Jacobson alleged that Maryland’s breach of agreement caused the loss. If Maryland was responsible for the loss, there could be no liability upon the principal, Hughes, and hence a factual issue was joined which in the record before us remains unresolved.

Maryland maintained that the cross-motions for summary judgment constituted a concession by both parties that no material question of fact existed, but the issues raised should be determined as questions of law. Maryland further asserts that Jacobson admitted all the facts now claimed but we fail to *75 find any admissions in his motion. Even if Jacobson made such admissions, they were made for the purpose of his motion only. The filing of cross-motions does not concede the absence of a triable issue of fact. The court is bound in such cases to deny both motions if it finds, as here, there is actually a genuine issue of material fact. See Allied Mutual Ins. Co. v. Lysne, supra.

Maryland also contends that the assertions made in support of its motion must be taken as true but malees no counter assertions with respect to Jacobson’s affirmative defense. The assertions in the motion are meaningless unless supported as provided for in Rule 56(e). True, the moving party may pierce the counter allegations contained in his opponent’s pleadings, but in order to do so, he must discharge his burden and show by extraneous material that there is no triable issue of fact although one superficially appears from the pleadings. The record is devoid of anything contravening Jacobson’s allegation of affirmative defense. It was not Jacobson’s obligation, but Maryland’s, to produce the necessary extraneous material to expose this defense as unmerited.

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Bluebook (online)
336 F.2d 72, 1964 U.S. App. LEXIS 4397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joseph-p-jacobson-v-maryland-casualty-company-ca8-1964.