Pautz v. American Insurance Co.

128 N.W.2d 731, 268 Minn. 241, 1964 Minn. LEXIS 704
CourtSupreme Court of Minnesota
DecidedMay 15, 1964
Docket39,186
StatusPublished
Cited by15 cases

This text of 128 N.W.2d 731 (Pautz v. American Insurance Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pautz v. American Insurance Co., 128 N.W.2d 731, 268 Minn. 241, 1964 Minn. LEXIS 704 (Mich. 1964).

Opinion

Thomas Gallagher, Justice.

Actions by Olga P. Pautz as special administratrix of the estate of Raymond E. Pautz, deceased, against defendant, American Insurance Company, a corporation, on two alleged contracts for settlement *243 in an action for damages arising out of an automobile accident. The latter action had been instituted by Raymond E. Pautz against William and Ruth Selman, defendant’s insureds, and was pending at the time of Raymond’s death. In the present action, based upon the jury’s finding on a special interrogatory, the court determined that no offer of settlement and no contract for settlement of the damages sought in the prior action had been made by anyone before Raymond’s death. This is an appeal from a denial of plaintiff’s subsequent motion for amended and additional findings or for a new trial.

On appeal plaintiff contends that the court erred (1) in refusing to strike portions of defendant’s answer having reference to its defenses of fraud, mutual or unilateral mistake, and lack of capacity with respect to the alleged contracts for settlement; (2) in sustaining defendant’s objections to certain exhibits offered in evidence by plaintiff as hereinafter set forth; (3) in sustaining objections to the testimony of Olga P. Pautz and Edward Pautz, parents of Raymond E. Pautz, with reference to a conversation with Raymond just prior to his death on December 10, 1961, and to his acceptance at that time of an alleged offer of settlement made by defendant on December 7, 1961; (4) in allowing defendant’s counsel in his argument to the jury to characterize plaintiff’s case and plaintiff’s counsel as knowingly and intentionally attempting to perpetrate a fraud on the defendant; and (5) in refusing to grant plaintiff’s motion to direct the jury to find that a contract of settlement on behalf of Raymond had been consummated after Raymond’s death by his counsel and defendant.

Raymond E. Pautz died on Sunday, December 10, 1961, between 9 and 10 p. m. at Veterans Hospital, Fort Snelling. His death was due to cancer and bore no relationship to the automobile accident out of which the action pending at the time of his death had arisen. It is plaintiff’s claim that a few hours prior to his death Raymond accepted an oral offer of $8,000 made by defendant to his counsel, Robert Munson, on December 7, 1961, in settlement of such action; and that his counsel consummated a second settlement agreement with defendant for Raymond’s benefit on the day following his death for an additional $1,000.

*244 Defendant denied it had made any offer of settlement of the action for damages either to Raymond E. Pautz personally, or to his attorney, Robert Munson, or to anyone else prior to Raymond’s death; and likewise denied that any contract for settlement thereof had been made either during Raymond’s lifetime or otherwise. It alleged affirmatively that if any such contract had been made it had been induced by fraud on the part of Raymond or his agents; or had been made by persons lacking capacity or authority therefor; or had been made as a result of mutual or unilateral mistake.

At the trial Mr. Munson testified that on December 7, 1961, while Raymond was in Veterans Hospital, he (Munson) had received by telephone an offer of $8,000 in settlement of the pending action from Douglas J. McClellan, defendant’s claims representative; that at that time he had advised Mr. McClellan that he would communicate the offer to his client’s parents, who were coming from International Falls to visit Raymond on Sunday, December 10, 1961; that on December 11, 1961, while still unaware of Raymond’s death, he had telephoned McClellan and advised him that Raymond had instructed his parents to advise him (Munson) that the offer of $8,000 was acceptable; that on that same date after further negotiations an additional settlement had been arrived at whereby defendant would pay an additional $1,000 to Raymond if Munson would guarantee payment therefrom of a hospital bill in the sum of $271 incurred by Raymond shortly after the accident. It is admitted that these negotiations were held at a time when both McClellan and Munson were unaware that Raymond had died the previous evening. It is undisputed that in conjunction with such negotiations a draft in the sum of $9,000, payable to Raymond E. Pautz, was drawn by defendant and delivered to Munson, together with a release of all claims in the action to be executed by Raymond in consideration of such sum. On the day following delivery of this draft, Munson was instrumental in having Olga P. Pautz, mother of Raymond, appointed special administratrix of his estate. In this capacity she endorsed the draft and executed the release, but defendant refused to honor the draft upon its presentation for payment.

In his testimony McClellan denied that he had made any offer of *245 settlement to Munson or anybody else at any time prior to Raymond’s death, and in particular on December 7, 1961. He testified that in a conversation with Munson on that date the latter had demanded different sums in settlement, none of which were less than $10,000. He testified further that on the morning of December 11, 1961, before learning of Raymond’s death the day before, he had offered the sum of $7,500 to Munson in settlement of the action, which offer the latter had then rejected; that after further negotiations and after consultation with his superior, he had raised the offer to $8,000, which had again been rejected; and that he had finally reached an agreement with Munson to settle all claims for $9,000; that thereafter the draft for $9,000 and the release to be signed by Raymond had been prepared and delivered to Munson.

During the trial plaintiff called as witnesses Olga P. Pautz and Edward Pautz, parents of Raymond. They were each asked to relate their conversations with Raymond on the afternoon of December 10, 1961, with respect to his acceptance of the alleged $8,000 offer of settlement. This testimony was objected to and rejected by the court on the ground that it was inadmissible under the provisions of Minn. St. 595.04, commonly referred to as the Dead Man’s Statute.

At the close of the testimony, the trial court gave the jury the following instructions:

“* * * Now, this case is being submitted to you on your answering two questions * * *. Insofar as what the legal consequences are from your answering these questions is not before the jury nor should that be considered by the jury. * * * The only situation that you are confronted with and your duty is to answer these questions in the light of the law that I give you and based upon the testimony you have heard * * *.
$ $ ‡ ‡ $
“Now, with regard to the situation as to whether or not Mr. Munson revealed to Mr. McClellan the situation with regard to the illness that Mr. Pautz had, that is immaterial so far as your answering of these questions. The only reason that was allowed in the testimony was for the purpose of going to the credibility of the testimony * * *.
* * * * *
*246 “* * * In this particular case, two questions are to be submitted to you. These are the two questions: ‘Question No. 1. Did Mr. McClellan, on December 7th or December 8th, 1961, make an offer to Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
128 N.W.2d 731, 268 Minn. 241, 1964 Minn. LEXIS 704, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pautz-v-american-insurance-co-minn-1964.