ROBERT BINGHAM, Plaintiff-Respondent v. NATIONAL LIABILITY & FIRE INSURANCE COMPANY

CourtMissouri Court of Appeals
DecidedNovember 12, 2024
DocketSD38272
StatusPublished

This text of ROBERT BINGHAM, Plaintiff-Respondent v. NATIONAL LIABILITY & FIRE INSURANCE COMPANY (ROBERT BINGHAM, Plaintiff-Respondent v. NATIONAL LIABILITY & FIRE INSURANCE COMPANY) 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
ROBERT BINGHAM, Plaintiff-Respondent v. NATIONAL LIABILITY & FIRE INSURANCE COMPANY, (Mo. Ct. App. 2024).

Opinion

Missouri Court of Appeals Southern District

In Division ROBERT BINGHAM, ) ) Plaintiff-Respondent, ) ) v. ) No. SD38272 ) NATIONAL LIABILITY & FIRE ) Filed: November 12, 2024 INSURANCE COMPANY, ) ) Defendant-Appellant. )

APPEAL FROM THE CIRCUIT COURT OF GREENE COUNTY

The Honorable Daniel R. Wichmer, Judge

AFFIRMED

National Liability & Fire Insurance Company (“National”) appeals the Circuit Court of

Greene County, Missouri’s (“trial court’s”) judgment overruling its Motion to Set Aside Default

Judgment awarding compensatory damages and interest to Robert Bingham (“Bingham”). In

two points on appeal, National asserts the trial court erred in denying National’s Motion to Set

Aside Default Judgment because (1) the default judgment was obtained through extrinsic fraud

and fraud on the court in that Bingham’s counsel induced National’s inaction, and (2) the trial

court applied an improper standard in that Rule 74.06(d) should allow consideration of grounds

1 other than fraud under the plain language of the rule. 1 Finding no merit in these claims, we

affirm.

Factual Background and Procedural History

On December 1, 2011, Bingham was travelling to a jobsite in a van owned by his

employer, Recovery Chapel, Inc. (“Recovery Chapel”), as part of Recovery Chapel’s “Honest

Days Work” program. 2 The van and its occupants were involved in a single vehicle roll-over

accident. National was the business auto liability insurer for Recovery Chapel.

Bingham made, and received payment for, a Workers’ Compensation claim. He then

filed a personal injury lawsuit in March 2012, against Aaron Edwards (“Edwards”), Farris

Robertson (“Robertson”), and Recovery Chapel, for injuries he sustained in the accident.

Edwards and Robertson were also employees of Recovery Chapel. Edwards was the driver of

the van at the time of the accident. Robertson was alleged to be the director in charge of

Recovery Chapel and its work program. Bingham voluntarily dismissed Recovery Chapel from

the lawsuit with prejudice in September 2012. The initial Petition for Damages was amended

and Dan Harmen (“Harmen”) was added as a defendant in January 2013. 3 Harmen was also an

employee of Recovery Chapel. Bingham dismissed the lawsuit against Edwards, Robertson, and

Harmen without prejudice in December 2014.

1 All rule references are to Missouri Court Rules (2024), unless otherwise indicated. 2 Recovery Chapel is a work release program for men on parole for drug and alcohol offenses. The “Honest Days Work” program provides manual labor employment for men staying at Recovery Chapel. 3 We note the initial Petition for Damages uses the spelling Dan Harmen; however, subsequent filings, including judgments, use the spellings Daniel Harmon and Dan Harmon. Both appellant’s and respondent’s briefs use Harmen, which we use throughout this opinion.

2 In November 2016, Bingham filed a new lawsuit against Edwards, Robertson, and

Harmen. Harmen was personally served with the new lawsuit on July 27, 2018, at the Moberly

Correctional Center. Harmen failed to file a responsive pleading to Bingham’s Petition for

Damages within 30 days of being served. On August 20, 2018, because National defended the

initial suit against Robertson and pursuant to defense counsel’s instructions in that case,

Bingham gave notice directly to National that Harmen was served. National failed to file a

responsive pleading on Harmen’s behalf. On September 11, 2018, Bingham filed a Motion for

Default Judgment against Harmen. On September 20, 2018, the trial court granted an

Interlocutory Judgment of Default against Harmen. On October 18, 2018, the trial court held a

hearing on damages and, on October 19, 2018, entered a default judgment (“2016 Judgment”) 4

against Harmen, stating in part:

The Court grants Plaintiff judgment against Defendant Dan Harmon [sic] in the sum of $250,000, Plaintiff’s costs incurred in prosecuting the action, and lawful post judgment interest until the Judgment is paid in full.

On June 12, 2020, Bingham filed his first Equitable Garnishment Petition against Harmen

and National, styled Robert Bingham vs. Dan Harmon and National Liability and Fire Insurance

Company, Case No. 2031-CC00702 (“Garnishment I”), in the trial court, claiming National’s

insurance policy covered Bingham’s injuries. Harmen’s summons was returned “non est –

moved no forwarding address” on June 26, 2020. National was served on July 6, 2020, and it

retained counsel to defend Garnishment I. Bingham and National began negotiations to settle the

matter. Bingham dismissed Garnishment I against Harmen and National without prejudice on or

4 We refer to the October 19, 2018 default judgment as the 2016 Judgment to denote it disposed of the 2016 lawsuit.

3 about July 20, 2020, agreeing not to pursue further action against Harmen “at this time” to allow

National to “get [its] file in order” and “to select a mediator in hopes of mediating[.]”

Mediation was scheduled for April 23, 2021. Before the mediation date, National

extended a pre-mediation settlement offer of $25,000 to Bingham in a letter, which also set forth

reasons why National believed there was no coverage under its insurance policy for Bingham’s

claim and pointed out the 2016 Judgment did not properly include a rate for post-judgment

interest as required by statute. Bingham did not respond to National’s offer, but instead canceled

the mediation. National’s counsel and Bingham’s counsel continued to talk, including a

discussion about finding Harmen so he could attend mediation.

Less than three months after Bingham’s counsel canceled the mediation and instead of

resuming settlement negotiations or scheduling a new mediation, on July 16, 2021, Bingham

filed his second Equitable Garnishment Petition against Harmen and National, styled Robert

Bingham vs. Dan Harmon and National Liability and Fire Insurance Company, Case No. 2131-

CC00769 (“Garnishment II”), in the trial court. Bingham’s counsel did not notify National’s

counsel that he filed Garnishment II. Service of process was made on Harmen on September 16,

2021, and the registered agent for National on September 27, 2021. National’s registered agent

forwarded the summons and petition to National, where it was processed by National Claim

Support Technician Beck Lane (“Lane”). Lane mistakenly assumed the petition was a duplicate

of Garnishment I. Lane marked the summons and petition as a “Duplicate Suit” and stamped it

“Copy of suit previously received.” Lane forwarded the summons and petition to the National

claims examiner handling Bingham’s claim, Kim Hodgen (“Hodgen”). Hodgen accepted the

documents as duplicates and did not forward the documents to National’s legal department.

4 National took no action on the summons and petition in Garnishment II, and neither National nor

Harmen filed a responsive pleading in Garnishment II.

Bingham filed a Motion for Default Judgment on October 28, 2021, along with a Notice

of Hearing setting a hearing for five days later on November 2, 2021. Neither Harmen nor

National appeared at the hearing. The trial court entered Bingham’s proposed judgment

(“Default Judgment”) in favor of Bingham and against Harmen and National in the amount of

$250,000 damages, post-judgment interest of 5% from the date of entry of the underlying

judgment and post-judgment interest of 5% on November 3, 2021, stating in part:

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ROBERT BINGHAM, Plaintiff-Respondent v. NATIONAL LIABILITY & FIRE INSURANCE COMPANY, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robert-bingham-plaintiff-respondent-v-national-liability-fire-insurance-moctapp-2024.