Lauderdale v. Neal

569 S.E.2d 431, 212 W. Va. 184, 2002 W. Va. LEXIS 40
CourtWest Virginia Supreme Court
DecidedApril 25, 2002
DocketNo. 29963
StatusPublished
Cited by3 cases

This text of 569 S.E.2d 431 (Lauderdale v. Neal) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lauderdale v. Neal, 569 S.E.2d 431, 212 W. Va. 184, 2002 W. Va. LEXIS 40 (W. Va. 2002).

Opinion

PER CURIAM.

Viola Brown Lauderdale (hereinafter “Appellant”) appeals from a January 2, 2001, order of the Circuit Court of Kanawha County, under which she was declared entitled to just $100 from the proceeds of a $100,000 settlement previously disbursed to family members other than herself as a result of a summary proceeding seeking review of a compromise of a wrongful death claim arising out of the death of her husband, Michael Wayne Brown (hereinafter “Decedent”). Appellant contends that the lower court erred by making such a nominal award to a surviving spouse, failing to designate the party responsible for payment of the award, and failing to set aside or amend the March 3, 1994, summary proceeding order which approved the original settlement but failed to set out the specific share of the settlement proceeds due each person entitled to a part of the settlement. Upon review of the record, briefs and argument in this case, we remand this ease to the circuit court to determine the share of the settlement fairly due to Appellant.

I. Facts and Procedural History

On July 21, 1993, Decedent was struck and killed by an automobile driven by Michael Dean Neal (hereinafter “Mr. Neal”) and insured by the Appellee State Farm Mutual Automobile Insurance Company (hereinafter “State Farm”).1 Decedent had married Appellant on May 11, 1993, while he was incarcerated in a work release center in Charleston.2 Decedent moved into Appellant’s residence after his incarceration ended June 6, 1993, and was residing with Appellant at the time of his death.3

On August 27, 1993, Decedent’s uncle, Robert Parks (hereinafter “Mr. Parks”), was appointed administrator of the estate, allegedly without the knowledge of Appellant. Mr. Parks subsequently initiated a wrongful death claim on behalf of the estate against the owner of the automobile, Mr. Neal, and State Farm. In response, State Farm offered to pay the administrator, Mr. Parks, $100,000 to settle the wrongful death action — the maximum amount payable under Mr. Neal’s insurance policy. On March 3, 1994, a hearing was held in the summary proceeding initiated in the circuit court to obtain court approval of the settlement proposed by State Farm and Mr. Parks. Although Mr. Parks did not attend the summary hearing,4 his counsel tendered to the circuit court a release, dated February 17,1994, and signed by Mr. Parks, expressly declaring that he had the consent of all beneficiaries entitled to share in the proceeds of the proposed settlement. While no transcript of the March 3, 1994, hearing exists, the record includes a letter authored by Judge Paul Zakaib which indicates that some of Decedent’s family, other than Appellant, did participate in the summary hearing. By order entered March 3, 1994, the circuit court approved the $100,000 settlement, allowed the administrator’s counsel a fe.e of $40,000 and “directed” the administrator “to [186]*186distribute the settlment [sic] amount to the surviving relatives” of Decedent, “as dictated by the provisions of West Virginia Code § 55-7-6.” The order did not apportion the settlement among the relatives or specify them by name.5

Appellant received neither notice of the summary proceeding nor any part of the settlement proceeds. When Appellant discovered that settlement had occurred, she attempted to protect her right to a share of the settlement by filing a complaint on December 23, 1994, against Mr. Neal, State Farm, and Mr. Parks, requesting that the circuit court set aside the settlement order from the summary proceeding and reopen the wrongful death action. Appellant also requested that the previously-disbursed settlement funds be returned to an escrow account pending the outcome of the new action. The case was assigned to Judge Paul Zakaib, who had also presided over the summary proceeding. Mr. Neal, State Farm, and Mr. Parks filed motions to dismiss the complaint, and Appellant filed her response to said motions. The lower court denied the motions to dismiss Appellant’s action by order entered February 23,1996.

Thereafter, Appellant filed numerous motions in what appeared to be attempts to have the circuit court take action on her case. Additionally, Appellant filed a motion on September 18, 1996, seeking recusal of Judge Zakaib, asserting that the judge might be called as a witness because he had presided over the wrongful death summary proceeding in which the settlement had been approved. As a result, the case was reassigned to Judge Andrew MacQueen on June 19, 1997. Although Appellant filed several motions requesting that the court rule on the issue of setting aside the settlement order, no significant court action occurred in the matter until April 21, 1999, when the lower court entered a memorandum order. In that order, the court deferred its ruling on Appellant’s motions to set aside the settlement order in the summary proceeding until a hearing could be held concerning the interests of all statutory beneficiaries and the duties a settling insurer would owe to such beneficiaries.

On July 15,1999, Mr. Parks’ counsel filed a supplement to the record below, indicating that he had attempted by certified letters to notify the settlement beneficiaries and Mr. Parks of the upcoming hearing. As a result, Mr. Parks’ counsel discovered that one beneficiary was deceased and another incarcerated. The letter to a thud beneficiary was returned as undeliverable. The supplement also included an affidavit of Mr. Parks, a resident of Georgia, stating that Mr. Parks is disabled and receiving social security disability benefits as his only income. Consequently, Appellant was the only statutory beneficiary to appear and present evidence at the hearing held on July 21, 1999, for the purpose of reconsidering the proper distribution of the settlement proceeds. By order entered December 27, 2000, the circuit court awarded Appellant $100 of the previously disbursed settlement proceeds. It is from this order that Appellant now appeals.

II. Standard of Review

This Court set forth the standard for reviewing the findings and conclusions of a circuit court in syllabus point two of Walker v. West Virginia Ethics Commission, 201 W.Va. 108, 492 S.E.2d 167 (1997), as follows:

In reviewing challenges to the findings and conclusions of the circuit court, we apply a two-prong deferential standard of review. We review the final order and the ultimate disposition under an abuse of discretion standard, and we review the circuit court’s underlying factual findings under a clearly erroneous standard. Questions of law are subject to a de novo review.

III. Discussion

Our wrongful death statute requires that a wrongful death action shall be brought by the decedent’s personal representative and, as noted earlier, that the proceeds of any recovery are to be distributed to relatives and other individuals who are financially de[187]*187pendent upon the decedent.6 In cases tried to verdict, the statute further provides that the jury or the court may direct in what proportions the damages shall be distributed to the various person entitled to share in the recovery. See W. Va.Code § 55-7-6(b). Alternatively, West Virginia Code § 55-7-7 (1989) (Repl.Vol.2000),7

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Bluebook (online)
569 S.E.2d 431, 212 W. Va. 184, 2002 W. Va. LEXIS 40, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lauderdale-v-neal-wva-2002.