Nichols v. State Farm Fire & Casualty Co.

6 P.3d 300, 2000 Alas. LEXIS 79
CourtAlaska Supreme Court
DecidedAugust 11, 2000
DocketS-8969
StatusPublished
Cited by25 cases

This text of 6 P.3d 300 (Nichols v. State Farm Fire & Casualty Co.) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nichols v. State Farm Fire & Casualty Co., 6 P.3d 300, 2000 Alas. LEXIS 79 (Ala. 2000).

Opinion

OPINION

MATTHEWS, Chief Justice.

I, INTRODUCTION

Dallas Nichols sued his neighbor's insurance company for intentional and negligent spoliation based on the insurance company's failure to secure critical evidence in Nichols's case against the neighbor. The superior court granted summary judgment to the insurance company, and Nichols appealed. We affirm.

II. FACTS AND PROCEEDINGS

A. Facts

On september 1, 1996, Dallas Nichols was assisting his neighbor, Richard Gittlein, with roof repairs when the ladder Nichols was standing on collapsed beneath him. Nichols fell eight or nine feet, tearing a rotator cuff. It is uncontested that the ladder was "old," "beat-up" and "had a lot of cracks in it." Gittlein left the broken ladder under the deck of his house.

Two months later, on December 5, 1996, a fire heavily damaged CGittlein's house. Nichols claims that the ladder was not destroyed in the fire. 1 Shortly after the fire, on December 18, 1996, Nichols filed a claim with Gittlein's insurance company, State Farm, for his injuries suffered in the ladder accident. The claim was assigned to State Farm agent Janet Sperbeck. She contacted Gitt- *302 lein on December 20th, who reported that he was not sure if he still had the ladder and that it may have been destroyed in the fire.

On January 2, 1997, Sperbeck met with Nichols for the first time. He told her that the ladder was still in existence on the property and that it should be preserved. Sper-beck went to Gittlein's premises on January 2, hoping to find him and ask about the ladder. that the house had been destroyed and all that was left was a shed. Sperbeck left without finding Gittlein or the ladder. When she arrived, she discovered

After this visit, Sperbeck wrote to Gittlein, asking whether he had found the ladder. She called him twice, without reaching him. But she did not contact the State Farm agent who was handling Gittlein's fire claim and who was in communication with Gittlein.

On January 15 Sperbeck called Nichols and spoke with Nichols's wife, Judy. Judy expressed concern that, if Sperbeck failed to collect the ladder, it would soon be too late. Sperbeck traveled to the premises on that date but did not find Gittlein there.

On January 27 Cittliein made contact with Sperbeck. He told her that he could not find the ladder and that it must have been thrown out with the fire debris.

Subsequently, in July 1997, State Farm wrote Nichols stating that its liability analysis was complete and that Cittlein was not negligent. State Farm therefore declined to make any payments under the lability coverage of its policy.

B. Proceedings

On August 6, 1997, Nichols filed suit against Gittlein and State Farm. Nichols alleged that Gittlein was liable for negligently providing a ladder for use by Nichols that Gittlein knew or should have known was defective and unsafe for use. Nichols also alleged that Gittlein and State Farm "acted negligently, intentionally or recklessly in failing to preserve the ladder." These claims for intentional and negligent spoliation were the only claims alleged against State Farm.

After some discovery was conducted, State Farm moved for summary judgment. Initially, its motion was based on an assertion that the ladder was destroyed in the December 5 fire, which occurred before State Farm had any notice of a possible claim by Nichols. Nichols pointed out that his sworn answer to an interrogatory attested to the existence of the ladder after the fire and that there was a genuine issue of material fact on this point.

State Farm then expanded the grounds for its motion. Filing a new affidavit from Janet Sperbeck detailing her activities in the case, State Farm argued that Sperbeck committed no acts of spoliation and that, as State Farm's agent, she had fulfilled State Farm's duty concerning the ladder.

After additional discovery, Nichols filed a supplemental opposition to State Farm's summary judgment motion. Nichols opposed the motion on two grounds: (1) that it was not ripe because of the pendency of Nichols's motion to compel various documents relating to State Farm's investigation of the case; and (2) that the ladder was not destroyed in the fire and that "State Farm had one full month to locate and preserve the ladder but it made no attempt to do so."

State Farm filed a supplemental reply in support of its motion for summary judgment. In it, State Farm noted that Nichols's claim had "apparently, evolved into a claim that State Farm negligently failed to locate the ladder, as opposed to a claim that it spoliated the ladder." It argued that this is essentially a claim for negligent investigation and that an insurer owes no duty of reasonable investigation to a claimant. State Farm cited O.K. Lumber Co. v. Providence Washington Insurance Co. 2 for this proposition and sought summary judgment on this basis.

State Farm also argued that Alaska does not recognize negligent spoliation as a separate tort and that there was no evidence that State Farm had intentionally spoliated the ladder.

The superior court granted summary judgment to State Farm. In relevant part, the superior court wrote:

*303 State Farm owed no duty to Nichols to locate or preserve the ladder. Without a duty, a negligence claim is barred.
In O.K. Lumber v. Providence Washington Ins. an injured claimant claimed damages against the insurer for the insurer's negligent investigation and adjustment of the claim. 759 P.2d 523 (Alaska 1988). O.K. Lumber held that an insurer owes no such duty to the claimant. < 7d. In the same manner, State Farm owes no duty to Nichols.

A week after the superior court granted summary judgment to State Farm, the court granted Nichols's motion to compel against State Farm. The court ordered State Farm to produce Nichols's claim file, Gittlein's fire claim file, and the entire underwriting file.

State Farm did not respond to the order. Instead, Gittlein produced all of the requested documents with the exception of Nichols's file. Gittlein redacted portions of the file that related to the insurance adjuster's assessment of. Gittlein's lability and Nichols's comparative liability. He then moved for a protective order to preserve those redactions.

On December 7, 1998, the superior court entered final judgment for State Farm and awarded State Farm twenty percent of its attorney fees, for a total of $4,000, under Civil Rule 82(b)(2). 3

After the entry of final judgment, on December 283, 1998, the superior court reviewed Gittlein's redactions in camera. The court granted Gittlein's motion for a protective order and held that the redacted portions were "irrelevant and prejudicial."

Nichols appeals the grant of summary judgment, the issuance of the protective order, and the award of attorney's fees.

III.

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Bluebook (online)
6 P.3d 300, 2000 Alas. LEXIS 79, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nichols-v-state-farm-fire-casualty-co-alaska-2000.