Mid-Continent Casualty Co. v. Daniel Clampett Powell & Cunningham, LLC

196 S.W.3d 595, 2006 Mo. App. LEXIS 738, 2006 WL 1431220
CourtMissouri Court of Appeals
DecidedMay 22, 2006
DocketSD 26697
StatusPublished
Cited by6 cases

This text of 196 S.W.3d 595 (Mid-Continent Casualty Co. v. Daniel Clampett Powell & Cunningham, LLC) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mid-Continent Casualty Co. v. Daniel Clampett Powell & Cunningham, LLC, 196 S.W.3d 595, 2006 Mo. App. LEXIS 738, 2006 WL 1431220 (Mo. Ct. App. 2006).

Opinion

*597 SHERRI B. SULLIVAN, J.

Introduction

Mid-Continent Casualty Company (MCC) appeals from the summary judgment entered by the trial court in favor of Daniel Clampett Powell & Cunningham, LLC (Clampett) on MCC’s petition for legal malpractice. We affirm.

Factual and Procedural Background

On January 25,1996, three employees of Matrix Service Company (Matrix) were seriously injured while welding an above-ground fuel storage tank on a project in Mount Vernon for Williams Pipeline Corporation (Williams). Tank Consultants, Inc. (TCI) provided contract consulting services for Williams on the Mount Vernon Project. The three employees brought suit against Williams and TCI in an action styled White, et al. v. Williams Pipeline Corp., et al. (the White litigation).

The insurance policy that provided coverage to TCI in the White litigation was issued by Mid-Continent Insurance Company (MCI).

MCC, MCI and Oklahoma Surety are separate corporations that are part of the “Mid-Continent Group.” The Mid-Continent Group is not a business entity, but rather a word or trademark designating the informal conglomeration of these three separate corporations. MCC employees work as adjusters on behalf of MCI or Oklahoma Surety when claims arise under policies issued by MCI or Oklahoma Surety. MCC employees Harley Brown and Kirby Pancoast worked as adjusters on behalf of MCI in the White litigation.

MCI had a duty to defend TCI in the White litigation as TCI’s insurer. On October 7, 1996, MCI assigned the defense of TCI to Clampett.

The contract between Williams and TCI for the Mount Vernon Project contained an indemnity clause in which TCI agrees to indemnify Williams for all claims brought against it, with certain exceptions not applicable here. As a result, Williams filed a cross-claim against TCI seeking indemnity in the White litigation. Williams eventually settled with the plaintiffs for $3,475,000.00. MCI refused to settle. Williams sought summary judgment on its indemnity claim against MCI. The trial court granted summary judgment in favor of Williams, finding that MCI was obligated to indemnify Williams. This judgment was affirmed by the Court of Appeals, Southern District.

TCI thereafter filed an action against MCI for breach of contract and breach of the covenant of good faith and fair dealing. The parties settled this litigation for approximately $7,000,000.00. The settlement agreement between MCI and TCI stated that TCI agreed to cooperate with MCI, its insurer, in connection with any action against Clampett.

We note that the settlement with TCI was paid entirely by MCC. MCI paid nothing to Williams to satisfy the judgment against TCI in the White litigation.

MCC thereafter filed suit against Clam-pett for legal malpractice, asserting that an attorney-client relationship existed between MCC and Clampett for the defense of TCI. MCC claimed Clampett was negligent in defending TCI, in failing to assert the inapplicability and/or unenforceability of the indemnity provision, and for filing a response to Williams’ summary judgment motion that failed to comply with Rule 74.04. 1 MCC sought as damages the amount it paid to TCI to settle its claims against MCI.

*598 MCI filed a motion to be added as a party plaintiff to this suit which the trial court denied. Clampett filed a motion for summary judgment, arguing that it had no attorney-client relationship with MCC. The trial court granted this motion. MCC appeals from this judgment.

Standard of Review

Our review of the trial court’s grant of summary judgment is essentially de novo. ITT Commercial Fin. Corp. v. Mida-Am. Marine Supply Corp., 854 S.W.2d 371, 376 (Mo.banc 1993). The propriety of summary judgment is purely an issue of law. Id. We need not defer to the trial court’s order, as its judgment is founded on the record submitted and the law. Id. The criteria on appeal for testing the propriety of summary judgment are no different from those which should be used by the trial court to determine the propriety of sustaining the motion initially. Id. Summary judgment is proper only in those situations in which the movant can establish that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law. Id. at 377.

Points on Appeal

In its first point, MCC contends that the trial court erred in granting summary judgment in favor of Clampett on Count I of its petition for negligence because two plausible, but contradictory accounts of essential facts as to the existence of an attorney-client relationship have been presented in this case.

Discussion

MCC contends that the trial court believed Clampett’s version of the facts and ignored MCC’s version. MCC’s alleged facts supporting the existence of an attorney-client relationship are as follows. First, MCC claims that Clampett listed MCC as a client in the Martindale-Hubbell listings from 1996-2001, and Clampett worked on no matters other than the White litigation from 1996-2001 for MCC or any other member of the Mid-Continent Group. However, listing a client in Martindale-Hubbell does not create an attorney-client relationship, and the authority presented by MCC, Paradigm Ins. Co. v. Langerman Law Offices, P.A., 200 Ariz. 146, 24 P.3d 593 (2001), does not support MCC’s argument.

Second, MCC contends that it paid Clampett’s fees for handling the White litigation. However, it is unclear from the record whether MCC or MCI paid Clam-pett’s fees. Clampett attorney Pat Platter (Platter) testified that MCC paid the fees. However, documents in the record show that MCI assumed responsibility for the costs of Clampett’s representation, which were compensated by Employers Reinsurance Corporation (ERC). Other documents refer to Mid-Continent Group, without specifying MCC or MCI.

In any event, the mere payment of fees, without more, is not proof of an agency relationship, Leidy v. Taliaferro, 260 S.W.2d 504, 507 (Mo.1953), much less an attorney-client relationship. The relation between a lawyer and his client is a delicate and exacting one, highly personal. Plaza Shoe Store, Inc. v. Hermel, Inc., 636 S.W.2d 53, 57 (Mo.1982). It involves much more than the payment of fees. MCC presented no facts to support a finding that it received legal advice or assistance from Clampett, or that Clampett intended to provide such advice or assistance on MCC’s behalf. World Resources, Ltd. v. Utterback, 943 S.W.2d 269, 271 (Mo.App. E.D.1997).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Beshears v. Wood
W.D. Missouri, 2019
State Ex Rel. Thompson v. Dueker
346 S.W.3d 390 (Missouri Court of Appeals, 2011)
Fox v. White
215 S.W.3d 257 (Missouri Court of Appeals, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
196 S.W.3d 595, 2006 Mo. App. LEXIS 738, 2006 WL 1431220, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mid-continent-casualty-co-v-daniel-clampett-powell-cunningham-llc-moctapp-2006.