Massachusetts Insurers Insolvency Fund v. Safety Insurance Co.

19 Mass. L. Rptr. 521
CourtMassachusetts Superior Court
DecidedJune 27, 2005
DocketNo. 035235BLS
StatusPublished

This text of 19 Mass. L. Rptr. 521 (Massachusetts Insurers Insolvency Fund v. Safety Insurance Co.) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Massachusetts Insurers Insolvency Fund v. Safety Insurance Co., 19 Mass. L. Rptr. 521 (Mass. Ct. App. 2005).

Opinion

van Gestel, Allan, J.

This matter comes before the Court on two motions for summary judgment. The plaintiff, the Massachusetts Insurers Insolvency Fund (the “Fund”), has filed a motion for partial summary judgment, and the defendant Safety Insurance Company (“Safety”) has moved for summary judgment on the claims against it.

BACKGROUND

On December 10, 1998, the defendant Lynne M. Cignarella (“Lynne”) was a passenger in an automobile owned and opemted by her husband, Peter A. Cingarella (“Peter”), which was involved in a collision with a vehicle operated by the defendant Erica Folkard (“Erica”) and owned by her father, the defendant Carl Hughes (“Hughes”).

Safety insured the Cignarella vehicle with both bodily injury and uninsured motorist (“UM”) limits of $25,000.

Trust Insurance Company (‘Trust”) insured the Hughes vehicle with a policy providing bodily injury limits of $100,000.

Lynne filed suit against her husband, Peter, and against Erica and Hughes, in Plymouth Superior Court seeking damages for personal injuries sustained in the accident. This case was remanded to the Hingham District Court (the “Hingham suit”).

Lynne’s attorney in the Hingham suit, and in all related matters thereafter was Martha L. Morrill (“Ms. Morrill”).

Peter, Lynne’s husband, was defended in the Hingham suit by Christine A. Bock (“Ms. Bock”), an attorney provided by Safety.

On November 11, 2002, a Safety claims adjustor made an unsolicited telephone call to Ms. Morrill and stated that Safety would offer the full bodily injury policy limit of $25,000 to settle the case. Ms. Morrill had not previously made a demand for settlement to Safety.

Also on November 11, 2002, Ms. Bock telephoned Ms. Morrill regarding the execution of a release (the “Release”), releasing Peter and Safety. The Release, which was drafted by Ms. Morrill, Lynne’s attorney, was executed by Lynne on December 3, 2002, and her signature was notarized by Ms. Morrill. The Release reads as follows:

RELEASE AND SETTLEMENT OF CLAIM FOR THE SOLE CONSIDERATION OF TWENTY-FIVE THOUSAND DOLLARS ($25,000.00), I do hereby release, acquit and forever discharge Safety Insurance, Peter A. Cignarella, driver of vehicle, and Peter A. Cignarella, owner of vehicle, from any and all actions, causes of action, claims and demands, damages, costs, loss of services, expenses and compensation on account of or in any way growing out of any and all known and unknown personal injuries and property damage resulting or to result from an accident that occurred on December 8, 1998, and do hereby agree to indemnify and save harmless the said Safety Insurance and Peter A. Cignarella from all further claims or demands, costs or expense arising out of injuries or damage sustained by me.
It is expressly warranted by me that no promise or inducement has been offered except as herein set forth; that this release is executed without reliance upon any statement or representation of the person or parties released, or their representatives, concerning the nature and extent of the injuries, damages and/or legal liabilities therefore (sic); that acceptance of the consideration set forth herein is in full accord and satisfaction of a disputed claim for which liability is expressly denied.
Signed and sealed this 3rd day of December 2002.

On December 11, 2002, a motion for separate and final judgment pursuant to Mass.R.Civ.P. Rule 54(b) was assented to by Ms. Morrill, filed and allowed by the Hingham District Court. On December 17, 2002, a stipulation of dismissal was executed by all counsel and filed in the Hingham District Court, effectively ending Lynne’s litigation against Peter.

On December 23, 2002, the settlement check was endorsed by Ms. Morrill and her client, Lynne, and negotiated for payment.

Over two years before the Release was executed by Lynne, Trust, which insured Erica and Hughes, was determined to be insolvent by the Supreme Judicial [522]*522Court on July 26, 2000, effective August 2, 2000. As provided in G.L.c. 175D, by reason of the insolvency of Trust, the Fund became obligated to pay certain “covered claims” arising out of and within the coverage of certain Trust insurance policies. The Trust policy in issue here provided coverage for bodily injury for which Erica and Hughes were legally responsible. The limits of the bodily injury protection under the Trust policy are $100,000.

Following completion of the settlement and litigation against Peter in the Hingham suit, a demand was made on behalf of Lynne against Trust for the $100,000 bodily injury limits covering the Hughes vehicle. Because of Trust’s insolvency this demand was denied. Lynne then made demand for UM coverage against the Fund. The Fund responded to Lynne’s demand by stating that she first was required to exhaust all other available insurance resources before being able to access funds from the Fund. Lynne then made her UM demand against Safety.

Safety’s response to Lynne’s demand was to cite to the Release and deny the claim.

The Fund initiated this case to have the rights and obligations of the various parties declared by the Court.

The depositions of the two attorneys involved with the Release have been deferred pending the resolution of the Fund’s motion. The Fund contends, however, that it did not agree to defer these two depositions pending Safety’s motion. As a result, the Fund has responded to Safety’s motion with a Rule 56(f) request for discovery.

In support of its Rule 56(f) request, the Fund states that it “believes that the depositions will reveal facts that the parties did not intend the Release to apply to Ms. Cignarella’s UM claim.” “The Fund also intends to inquire at such depositions whether Safety failed to comply with certain obligations to Ms. Cignarella set forth in G.L.c. 176D, including without limitation the obligation to inform Ms. Cignarella of the applicable coverages arising out of the Accident and the provisions of the policy under which benefits were paid.”

DISCUSSION

Summary judgment is granted where there are no issues of genuine material fact, and the moving parly is entitled to judgment as a matter of law. Hakim v. Massachusetts Insurers’ Insolvency Fund, 424 Mass. 275, 283 (1997); Kourouvacilis v. General Motors Corp., 410 Mass. 706, 716 (1991); Cassesso v. Commissioner of Correction, 390 Mass. 419, 422 (1983); Mass.R.Civ.P. 56(c). The moving party bears the burden of affirmatively demonstrating that there is no triable issue of fact. Pederson v. Time, Inc., 404 Mass. 14, 17 (1989). Here, of course, both the Fund and Safety are moving parties.

The Fund’s Motion.

The Fund’s summary judgment motion seeks a judicial declaration that the Fund is entitled to deduct from any amount that may be due from it to Lynne on her UM claim $25,000, that being the amount that may be due from Safety, or would have been due but for the Release.

Safety’s motion takes the position that the Release is a complete bar to any further payments to Lynne from Safety.

The Court begins its analysis by examining the statutory powers granted to the Fund by G.L.c. 175D, sec. 5(1) (a) and (b):

(1) The Fund shall:

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Bluebook (online)
19 Mass. L. Rptr. 521, Counsel Stack Legal Research, https://law.counselstack.com/opinion/massachusetts-insurers-insolvency-fund-v-safety-insurance-co-masssuperct-2005.