New Hampshire Insurance Co. v. Keller

622 S.W.2d 198, 3 Ark. App. 81, 1981 Ark. App. LEXIS 777
CourtCourt of Appeals of Arkansas
DecidedOctober 21, 1981
DocketCA 81-129
StatusPublished
Cited by5 cases

This text of 622 S.W.2d 198 (New Hampshire Insurance Co. v. Keller) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Hampshire Insurance Co. v. Keller, 622 S.W.2d 198, 3 Ark. App. 81, 1981 Ark. App. LEXIS 777 (Ark. Ct. App. 1981).

Opinion

George K. Cracraft, Judge.

The appellant, New Hampshire Insurance Company, appeals from an order allowing appellee, Keller, to settle his personal injury claims against Sweet Home Stone Company “around” the appellant’s subrogation claim as workers’ compensation carrier.

The record reflects that on November 7, 1977, the appellee, Billy Keller and a co-employee, James Coleman, suffered serious injuries in a vehicular collision in Hemp-stead County in which the van they were riding in collided with a truck owned and operated by Sweet Home Stone Company. At the time of the accident both Keller and Coleman were employees of Ideal Baking Company, and were acting within the scope of their employment. Their employer was a Texas corporation having its principal place of business in Texarkana, Texas. Ideal Baking provided workers’ compensation benefits for its employees through the appellant, New Hampshire Insurance Company, its carrier. The policy was issued in Texas. Pursuant to that policy the appellant provided workers’ compensation benefits to both employees on claims filed with the counterpart of our Workers’ Compensation Commission in the State of Texas. All such benefits were paid in accordance with the law of that state. At the time of the proceeding now reviewed the appellant was still providing those benefits to appellee.

On April 17, 1978, Coleman filed a third-party tort action seeking recovery from Sweet Home Stone Company for his personal injuries. The appellant joined in that complaint asserting its right of subrogation and praying that any sums recovered “be prorated in accordance with laws of Arkansas.” Appellee Keller had on January 4, 1978, filed a similar suit in Hempstead County seeking recovery for his personal injuries sustained in that accident. While it does not appear that appellant joined in that complaint, it did, in subsequent pleadings hereinafter discussed, intervene and assert its right to subrogation “pursuant to the laws of Arkansas.”

The two tort cases were consolidated by agreement and set for trial on September 17, 1980. On the Monday preceding that Thursday trial date, Keller notified both the court and the appellant that a compromise settlement of his claim had been reached with Sweet Home Stone Company and that the settlement would be presented to the court for its approval on the date set for trial. On the morning of September 17,1980, the appellant appeared in opposition to the approval of the settlement and moved the court for permission to file a motion requesting that judicial notice be taken of the law of the State of Texas with respect to its subrogation rights. The law of Texas differs substantially from our own, and is much more favorable to the compensation carrier. Under Texas law the carrier is entitled to be reimbursed in full out of the first monies received from a third party whether by judgment or settlement and does not permit a settlement "around” the carrier as provided by our law.

The court denied the motion and after hearing testimony approved the settlement in which all of appellant’s subrogation rights were preserved by express provision.

The appellant appeals from that ruling contending that the court erred in refusing to take judicial notice of the workers’ compensation laws of Texas, and in refusing to hold that the first money obtained in the settlement be applied to its subrogation claims as permitted by Texas law. It further contends that the trial court erred and abused its discretion in approving the proposed settlement and that the settlement was unfair with respect to its subrogation rights. We find no merit to these contentions.

THERE WAS NO ERROR IN DENYING THE MOTION TO TAKE JUDICIAL NOTICE OF TEXAS LAW.

None of the pleadings on file at the time this motion was made indicated by implication or otherwise that the law of Texas or any other state would be in issue. In joining in the Coleman complaint appellant prayed for "a first lien as provided by law” upon the proceeds of any recovery obtained by Coleman. In its intervention in the Keller case appellant asserted its right “to be reimbursed pursuant to the laws of Arkansas” for all sums paid by it by reason of its policy of Workers’ Compensation Insurance. In its motion in limine it prayed for an order of the court restricting any party from mentioning the fact of subrogation and contended that the payments itemized by it therein “were properly recoverable pursuant to applicable laws of Arkansas.” The first mention of the law of Texas was made in the oral motion to take judicial notice made on the date of trial and the written motion thereafter filed pursuant to it.

Rule 44.1 (a) Arkansas Rules of Civil Procedure provides as follows:

(a) Notice. A party who intends to raise an issue concerning the law of any jurisdiction or governmental unit thereof outside this State shall give notice in his pleading or other reasonable written notice.

This rule provides alternative means of giving notice that a party intends to raise an issue inquiring judicial notice of the law of a sister state. First, a party may give that notice in his pleading. At the time the intent to rely upon the law of Texas was first mentioned to the court here no pleading of any party had made reference to any fact or circumstance which would cause the law of any other state to be applicable. No reference to the law of Texas or intent to rely upon it appeared in the pleadings. To the contrary, reliance on Arkansas law was clearly expressed. This alternative had not been complied with.

The rule permits, as a second alternative, the giving “of other reasonable written notice.” This rule is identical to superseded Ark. Stat. Ann. § 27-2504 (Supp. 1975) and worked no change in prior Arkansas practice. In the cases decided under that former act it was declared that while there was no rigid rule requiring a party to assert his reliance on foreign law at any particular point in the litigation, the court “must exercise discretion in determining the proper timing of the notice in the light or requirements of the case and fairness to the parties.” Yarbrough v. Prentice Lee Tractor Co., 252 Ark. 349, 479 S.W. 2d 549 (1972). The trial court’s exercise of that discretion in such matters will not be disturbed unless a clear abuse appears. Folk Construction Co, v. Sun Pipe Line Co., 271 Ark. 836, 611 S.W. 2d 198 (Ark. App. 1981); Shoptaw v. Puterbaugh, 263 Ark. 778, 567 S.W. 2d 288 (1978).

In denying the motion the court stated:

The Court: I am denying the motion, Mr. Russell, for the simple reason that the case was set for eight thirty this morning, and it is certainly no criticism of you at all. I haven’t had time to examine it, the jury is waiting, and it will be at least noon before I could rule on it with any competence.

Counsel for the appellees protested that they had no advance notice of the motion and no knowledge of the law of Texas with respect to the subrogation rights of compensation carriers. Even the attorney for appellant indicated that he had not been fully able to crystalize his thinking or get the authorities together. Any delay in the Keller case occasioned by the disposition of the motion would resul t in delay in the Coleman case which was also the subject of that motion. The cases had not then been severed.

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Cite This Page — Counsel Stack

Bluebook (online)
622 S.W.2d 198, 3 Ark. App. 81, 1981 Ark. App. LEXIS 777, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-hampshire-insurance-co-v-keller-arkctapp-1981.