Lampton v. Allstate Insurance Co.

586 So. 2d 205, 1991 Ala. LEXIS 927, 1991 WL 183972
CourtSupreme Court of Alabama
DecidedAugust 23, 1991
Docket1900598
StatusPublished
Cited by3 cases

This text of 586 So. 2d 205 (Lampton v. Allstate Insurance Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lampton v. Allstate Insurance Co., 586 So. 2d 205, 1991 Ala. LEXIS 927, 1991 WL 183972 (Ala. 1991).

Opinion

KENNEDY, Justice.

Rebecca and John Lampton filed an action against Allstate Insurance Company (“Allstate”) and Joan Beck, alleging breach of contract and fraud in relation to a series of transactions that occurred after Ms. Lampton was involved in an automobile accident. The trial court entered a summary judgment for both defendants on the Lamptons’ claims. In this appeal the Lamptons contest the summary judgment on the fraud claim but make no arguments concerning the breach of contract claim, so the issue before us is whether the trial court properly entered the summary judgment on the fraud claim.

The standard used to determine the propriety of a summary judgment is found in Rule 56(c), A.R.Civ.P.:

“The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show 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.”

The burdens placed on the parties by this rule have often been described:

“The burden is on one moving for summary judgment to demonstrate that no genuine issue of material fact is left for consideration by the jury. The burden does not shift to the opposing party to establish a genuine issue of material fact until the moving party has made a prima facie showing that there is no such issue of material fact. Woodham v. Nationwide Life Ins. Co., 349 So.2d 1110 (Ala.1977); Shades Ridge Holding Co. v. Cobbs, Allen & Hall Mortg. Co., 390 So.2d 601 (Ala.1980); Fulton v. Advertiser Co., 388 So.2d 533 (Ala.1980).”

Schoen v. Gulledge, 481 So.2d 1094, 1096-97 (Ala.1985).

The plaintiffs must prove their case by substantial evidence, Ala.Code 1975, § 12-21-12. In determining whether there is substantial evidence, we review the evidence in the light most favorable to the nonmovant and resolve all reasonable doubts against the movant. Stephens v. City of Montgomery, 575 So.2d 1095, 1097 (Ala.1991); Sanders v. Kirkland & Co., 510 So.2d 138 (Ala.1987). Substantial evidence is “evidence of such weight and quality that fair-minded persons in the exercise of impartial judgment can reasonably infer the existence of the fact sought to be proved.” West v. Founders Life Assurance Co. of Florida, 547 So.2d 870, 871 (Ala.1989).

Finally, a trial court’s ruling on a summary judgment motion is a nondiscre-[207]*207tionary ruling, and no presumption of correctness attaches to that ruling; accordingly, our review of the evidence properly presented in the record is de novo. Hightower & Co. v. United States Fidelity & Guaranty Co., 527 So.2d 698 (Ala.1988).

The plaintiffs present two arguments in relation to fraud. On one hand, they contend that they were fraudulently induced to sign a release of all contractual claims against Allstate and that the release is void, accordingly. On the other hand, they contend that Allstate fraudulently suppressed the fact that they were entitled to uninsured motorist insurance benefits and misrepresented to them that medical benefits were all they were entitled to. Ala. Code 1975, §§ 6-5-102 and -101, respectively. We decide the case by addressing the set of claims made pursuant to §§ 6-5-101 and -102; we do not address the Lamp-tons’ claim that the release is void.

It is undisputed that the Lamptons had two motor vehicle insurance policies with Allstate and that in the circumstances of this case those policies provided coverage of $10,000 in medical benefits and $40,000 in uninsured motorist benefits.

The defendants produced evidence that Ms. Lampton reported to them that she was involved in a one-car accident, and, that because of inconsistencies in her and Mr. Lampton’s description of the accident, they believed that Ms. Lampton may have been faking injuries, as well as the circumstances of the accident itself; that, nevertheless, Allstate negotiated with the Lamp-tons and agreed to pay $852 to Ms. Lamp-ton for “lost wages” in relation to the accident; that Allstate sent the Lamptons an $852 check, which they endorsed and deposited; that in relation to that check, the Lamptons signed a release for any additional contractual claims that they might have had against Allstate; that Joan Beck, Allstate’s insurance adjuster, told the Lamptons that they might be entitled to uninsured motorist benefits. Considering that evidence, we hold that the defendants made a prima facie showing that they were entitled to a summary judgment both on the plaintiffs’ § 6-5-102 claim that Allstate and Ms. Beck fraudulently suppressed or concealed the fact that the plaintiffs were entitled to uninsured motorist benefits and the plaintiffs’ § 6-5-101 claim that the defendants misrepresented that medical benefits were ah the plaintiffs were entitled to.

The Lamptons admit that they signed the release, and Ms. Lampton testified in, deposition that she read it. They do not deny endorsing and depositing the $852 check. Other than that, the Lamptons presented evidence that conflicts with the evidence supporting the defendants’ prima facie case. According to the evidence that the plaintiffs presented, Ms. Lampton had unpaid medical bills related to the accident at the time of the discussions concerning the $852 payment from Allstate and Ms. Beck told them that to receive the $852 for the medical bills, they had to sign the release. In deposition testimony, they deny that Ms. Beck or any representative of Allstate told them of the availability of the uninsured motorist benefits before they signed the release. To the contrary, they testify that Ms. Beck told them that the $852 was the last of their medical payment money; that Allstate had paid them for most of the $10,000 in coverage for medical bills, except for the $852; that Ms. Beck represented that they were entitled to that $852 and nothing more; that Ms. Beck never mentioned uninsured motorist benefits.

Consider the following testimony by Ms. Lampton:

“Q. Well, did Ms. Beck tell you before you signed that release, at any time in your dealings with her, over the phone or in person, did she tell you that there were uninsured motorist benefits that were provided for in your Allstate policy?
“A. No, sir.
“Q. You remember that, don’t you?
“A. She told us we had ten thousand dollars.
“Q. Ten thousand dollars, for medical bills?
“A. Yes, sir.
“Q. Under the medical pay endorsement?
[208]*208“A. She told us we had ten thousand dollars.
“Q. Period?
“A. Period.
“Q. And not a dime more?
“A. She didn’t mention any more.
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“Q. Did she [Ms. Beck] explain to you that there were uninsured motorist benefits available?
“A. No, sir.
“Q. Y’all had two cars on the policy, didn’t you?
“A. Yes, sir.
“Q.

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Cite This Page — Counsel Stack

Bluebook (online)
586 So. 2d 205, 1991 Ala. LEXIS 927, 1991 WL 183972, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lampton-v-allstate-insurance-co-ala-1991.