Richard "Neil" Howe v. Heartland Midwest, LLC Time Warner Cable Midwest, LLC

Missouri Court of Appeals·Decided April 14, 2020·No. WD82656·Published

Opinion

In the

Missouri Court of Appeals Western District

RICHARD "NEIL" HOWE, )

)

Respondent, ) WD82656 )

v. ) OPINION FILED: April 14, 2020 )

HEARTLAND MIDWEST, LLC, ET ) AL., )

Respondent, )

)

TIME WARNER CABLE MIDWEST, ) LLC, )

)

)

Appellant. )

Appeal from the Circuit Court of Jackson County, Missouri The Honorable Jalilah Otto, Judge

Before Division Two: Cynthia L. Martin, Presiding Judge, Thomas H. Newton, Judge and Gary D. Witt, Judge

Time Warner Cable Midwest, LLC ("Time Warner") appeals from a judgment that confirmed an arbitrator's award and entered judgment in favor of Richard "Neil" Howe ("Howe") and against Heartland Midwest, LLC ("Heartland") in the amount of $350,000. Time Warner argues that the trial court erred in denying its motion to intervene as a matter

of right, and in granting Howe's motion to confirm the arbitrator's award. Because Time Warner is not aggrieved by the judgment, it has no standing to appeal. And because the judgment does not resolve all claims as to all parties, the judgment is not final for purposes of appeal. The appeal is dismissed.

Factual and Procedural History On February 19, 2013, near the Country Club Plaza in Kansas City, Missouri, Heartland was performing horizontal directional drilling services pursuant to an agreement with Time Warner to install fiber optic cable. While performing that work, Heartland ruptured a gas main owned by Missouri Gas Energy ("MGE"). Howe, a construction foreman for MGE, responded to the scene to fix the ruptured main. While Howe was standing in an excavation hole above the ruptured main, Howe felt an explosion behind him and was thrown to the ground.

On April 17, 2017, Howe filed a petition against Heartland and Time Warner1 claiming damages for injuries Howe sustained. Heartland and Time Warner both filed answers to Howe's petition. Time Warner also filed a third-party petition against USIC Locating Services, LLC ("USIC"), the entity responsible for marking the location of underground utility lines. USIC filed an answer to Time Warner's third-party petition.

1 Howe's petition also named Charter Communications as a defendant. Howe dismissed Charter Communications without prejudice on June 26, 2017.

On February 1, 2019, Howe dismissed his claims against Time Warner.2 As a result, all that remained pending were Howe's claims against Heartland, and Time Warner's third- party claims against USIC.

On February 7, 2019, in the same proceeding where Howe's petition was initially filed, Howe filed a motion seeking confirmation of an arbitrator's award and the entry of a judgment against Heartland ("motion to confirm"). The arbitrator's award attached to the motion to confirm described an arbitration on January 11, 2019, between Howe and Heartland. The arbitrator awarded damages in favor of Howe and against Heartland in the amount of $350,000.

On February 8, 2019, Time Warner filed a notice of potential intervention ("notice"). In the notice, Time Warner complained that Howe and Heartland had conducted a "secret arbitration" while Time Warner was still a party to Howe's action. Time Warner complained that the arbitrator's award, if confirmed, could impair Time Warner's rights and potential recoveries against interpleaded funds in the United States District Court for the Western District of Missouri.3 Time Warner filed a formal motion to intervene on

2 Howe's dismissal of Time Warner did not specify whether it was with or without prejudice. The dismissal operated as a dismissal with prejudice, however, because Howe had earlier exercised his right pursuant to Rule 67.02 to voluntarily dismiss claims against Time Warner without prejudice in a suit filed in 2014 and dismissed in 2016. Howe's counsel has repeatedly represented to the trial court, and to this court on appeal, that Howe's dismissal of Time Warner in the instant case was with prejudice.

All rule references are to the Missouri Supreme Court Rules (2019), unless otherwise noted.

3

According to Time Warner's pleadings, BITCO General Insurance Corporation ("BITCO") issued two insurance policies to Heartland, each of which named Time Warner as an additional insured. BITCO is alleged by Time Warner to have paid out approximately $3.9 million of the $6 million policy limits on these policies to resolve or pay claims arising out of the February 19, 2013 explosion. The balance of the policy proceeds have apparently been paid into the registry of the United States District Court for the Western District of Missouri in connection with an interpleader action filed by BITCO and assigned case number 4:15-cv-00384-FJG. Time Warner, Heartland, Howe, and others are apparently named as defendants in the interpleader action. Time Warner argues it has an interest in the interpleaded funds arising out of rights of indemnity or contribution from Heartland by virtue of claims that have been resolved (and paid) by Time Warner. This explanation for Time Warner's motion to intervene is provided to afford context, and is not to be relied on as the law of the case.

February 22, 2019 ("motion to intervene"). Howe opposed Time Warner's motion to intervene, and argued that his claims against Time Warner had been dismissed with prejudice, and that Time Warner had no responsibility to satisfy his judgment against Heartland.

The trial court conducted a hearing on the motion to confirm and the motion to intervene on February 25, 2019. Counsel for Howe, Heartland, Time Warner, and USIC appeared. USIC's counsel explained that she was present because USIC "[was] brought in as a third-party defendant by Time Warner," and remained a party in the action because Time Warner's third-party petition was still pending.

In addressing the motion to confirm, Howe argued that he was free to separately resolve his claims against Heartland by whatever means he desired, including arbitration, and that Time Warner had no right to interfere with Howe's resolution of his claims against Heartland, especially as Time Warner had no responsibility to pay any judgment entered against Heartland. When asked by the trial court, Time Warner confirmed that Howe had the right to separately settle or otherwise resolve his claims against Heartland without Time Warner's assent. Time Warner nonetheless argued that the arbitration had been a sham proceeding designed to permit Howe to collect money out of the interpleaded funds in the federal district court action.

In addressing the motion to intervene, Howe repeated that Time Warner had no interest in the arbitrator's award, or its confirmation, because Howe had dismissed Time Warner with prejudice, and Time Warner had no risk of liability for the arbitrator's award.

Time Warner reiterated that its right to intervene stemmed from its interest in the interpleaded funds in the federal district court proceedings.

When asked by the trial court, USIC's counsel advised that USIC had no position on either the motion to confirm or the motion to intervene, and just wanted to "make sure Time Warner [is] going to dismiss us." Time Warner's counsel responded, "[w]e're working on that."

After hearing the parties' arguments, the trial court indicated that it would take both motions under advisement. The trial court noted that it would only rule on the motion to intervene, however, if the trial court believed there was a need to do so.

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Richard "Neil" Howe v. Heartland Midwest, LLC Time Warner Cable Midwest, LLC, (Mo. Ct. App. 2020).

Richard "Neil" Howe v. Heartland Midwest, LLC Time Warner Cable Midwest, LLC (Richard "Neil" Howe v. Heartland Midwest, LLC Time Warner Cable Midwest, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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