Kocher v. Getz

844 N.E.2d 1026, 2006 Ind. App. LEXIS 543, 2006 WL 742449
CourtIndiana Court of Appeals
DecidedMarch 24, 2006
Docket35A02-0507-CV-654
StatusPublished
Cited by5 cases

This text of 844 N.E.2d 1026 (Kocher v. Getz) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kocher v. Getz, 844 N.E.2d 1026, 2006 Ind. App. LEXIS 543, 2006 WL 742449 (Ind. Ct. App. 2006).

Opinions

OPINION

BAKER, Judge.

Appellant-defendant Kevin G. Kocher appeals the trial court's judgment allowing [1028]*1028appellee-plaintiff Alva Lynne Getz to execute the appeal bond to satisfy the unpaid balance of the judgment for personal injury damages previously entered. In particular, Kocher argues that the trial court erred in releasing the full amount of the appeal bond to Getz where Getz had agreed not to execute or enforce the judgment against Kocher but instead to attempt to recover the amount in a bad faith action against Kocher's insurance company.

Finding, among other things, that Getz is bound by the agreement and is, therefore, not entitled to collect the full amount of the appeal bond, we reverse the judgment of the trial court.

FACTS1

In March 1996, Kocher and Getz were involved in a motor vehicle collision in Huntington County. Kocher was insured under a policy of automobile liability insurance with a liability coverage limit of $100,000 for injury to one person. In February 1998, Getz filed a complaint against Kocher for damages, alleging that she had suffered certain injuries and losses and incurred medical expenses as a result of the collision. After a jury trial in April 2002, the trial court entered judgment in favor of Getz in the amount of $250,000. Kocher appealed the judgment. On May 28, 2002, after Kocher filed his notice of appeal, Getz filed a Petition for Writ of Execution, a Verified Motion for Proceeding Supplemental to Execution, and a Petition for Contingent Filing of Appeal Bond.

On June 12, 2002, the parties entered into an Assignment Agreement and Covenant Not to Execute (Agreement), which provided that, in return for Kocher's assignment to Getz of any bad faith claim Kocher had against his insurer, Getz would not execute or enforee the judgment against Kocher for any amount in excess of the limits of Kocher's insurance coverage of $100,000. Specifically, the Agreement provides, in relevant part, as follows:

1. [Kocher] hereby assigns to [Getz] all of his rights and claims against the Insurance Company, . existing because of its failure of good faith and fair dealings in refusing to settle [Getz's] claim against [Kocher] for the Policy Limits, by reason of which tortious conduct an excess judgment was rendered in favor of [Getz] and against [Kocher], as aforesaid.
2. In consideration of the foregoing argument, [Getz] agrees that she will not levy an execution on, or in any other mammer seek at any time to enforce, the Judgment against [Kocher], but will attempt exclusive, ly to recover the amount of the balance due upon the Judgment in an action against [Kocher's] Insurance Company based upon the assignment executed herewith.
3. The Agreement, and particularly [Getz's] covenant in the preceding paragraph not to levy on, or in any manner seek to enforce, the Judgment against [Kocher], is not intended and shall not be construed to release said Insurance Company from liability to [Kocher], and to [Getz] as his assignee, for the negli-genee, bad faith, or breach of contract on the part of said Insurance Company, resulting in the rendition of said judgment.
4. [Kocher] hereby transfers and assigns to [Getz] any privilege [Koch-er] may have with respect to state[1029]*1029ments or reports furnished by [Kocher] to said Insurance Company with respect to the occurrence giving rise to the action in which said Judgment was rendered, together with the right to waive the same in any action instituted by [Getz] against said Insurance Company.

Appellant's App. p. 24-25 (emphasis added).

On June 27, 2002, following a hearing, the trial court granted a stay of execution of the judgment, but required Kocher to file an appeal bond in the full amount of the judgment-including interest and projected interest-$266,517.28. On June 28, 2002, Kocher's insurance company, United Farm Family Mutual Insurance Company (United Farm) filed a supersedeas bond in that amount. On appeal, this court reversed the trial court's judgment and remanded for a new trial on the issue of mitigation of damages. Getz sought and was granted transfer. On March 30, 2005, our Supreme Court affirmed the judgment of the trial court in Kocher v. Getz, 824 N.E.2d 671 (Ind.2005).

On April 1, 2005, Getz filed a praccipe for execution on the appeal bond in satisfaction of the outstanding judgment. Subsequently, on April 15, 2005, United Farm paid Getz $120,646.54-the balance of Kocher's insurance coverage with interest and costs-instead of the judgment's total amount of $266,517.28. Thereafter, Koch-er moved for a release of the appeal bond. However, on May 19, 2005, the trial court denied Kocher's motion, stating as follows:

a. The sum of $108,519.21 has been deposited with the Clerk of the Court [of] Huntington County in partial satisfaction of the Judgment herein. Said amount is ordered paid to the Judgment Plaintiff.
b. The Appeal Bond in the amount of $266,517.28 which was established by Order of this Court on June 27, 2002, provided that in relevant part "(S)aid Appeal Bond shall continue during the pendency of the Appeal, and shall be applied to Plaintiff's Judgment as payment ..."
On June 28, 2002, [United Farm] posted a Supersedas [sic] Bond in the amount of $266,517.28. Said Bond provided that "... the Principal(s) shall satisfy the Judgment in full together with costs, interests, and damages, for delay, if for any reason the Appeal is dismissed or if the Judgment is affirmed ..."
Said [blond is ordered applied to the unpaid balance of the Judgment including interest and costs.
c. The remaining balance of the Appeal Bond in exeess of the full payment on the Judgment is ordered released.

Appellant's App. p. 55. Kocher now appeals.

DISCUSSION AND DECISION

Kocher contends that the trial court erred in ordering that Getz is entitled to recover the full amount of the judgment, which exceeds his insurance policy limits. He bases this argument primarily on the parties' Agreement, in which Getz agreed that she would not seek to recover any amounts beyond Kocher's policy limits in exchange for his assignment to her of a bad faith claim against United Farm.

As we consider this argument, we observe that the determination of the amount of an appeal bond lies within the discretion of the trial court, and we will only reverse upon an abuse of that discretion. Kocher, 824 N.E.2d at 675. But this appeal does not turn on the amount of the bond. Instead, it turns on whether the trial court properly ordered that Getz is entitled to execute against the bond in the full [1030]*1030amount of the judgment. We have been unable to locate any cases providing the standard of review for this precise situation, but we are persuaded that the trial court's determination regarding the execution of an appeal bond is within its discretion. See Amwest Surety Ins. Co. v. State, 750 N.E.2d 865, 867 (Ind.Ct.App.2001) (applying abuse of discretion standard to appeal regarding motions to be released from bail bonds).

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Related

In Re Estate of Robertson
859 N.E.2d 772 (Indiana Court of Appeals, 2007)
Cincinnati Insurance, Co. v. Young
852 N.E.2d 8 (Indiana Court of Appeals, 2006)
Kocher v. Getz
844 N.E.2d 1026 (Indiana Court of Appeals, 2006)

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844 N.E.2d 1026, 2006 Ind. App. LEXIS 543, 2006 WL 742449, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kocher-v-getz-indctapp-2006.