Sentry Insurance v. Longacre

403 F. Supp. 1264, 1975 U.S. Dist. LEXIS 15523
CourtDistrict Court, W.D. Oklahoma
DecidedOctober 31, 1975
DocketNos. CIV-74-351-B, CIV-74-512-B
StatusPublished
Cited by1 cases

This text of 403 F. Supp. 1264 (Sentry Insurance v. Longacre) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sentry Insurance v. Longacre, 403 F. Supp. 1264, 1975 U.S. Dist. LEXIS 15523 (W.D. Okla. 1975).

Opinion

BOHANON, District Judge.

The above-styled cases were consolidated for consideration, the earlier being an action for declaratory judgment filed by Sentry Insurance (CIY-74-351-B) and the later being a garnishment action filed by Melvin Stephens (CIV-74T512-B). There are but three genuine issues in the cases, all questions of law. First, what is the res judicata effect of a default judgment rendered in the District Court of Canadian County, Oklahoma? Second, what is the proper construction of insurance policy provisions which are in dispute? Third, what is the effect, through con[1266]*1266struction of the document and evaluation of the undisputed facts, of the “Retail Order for a Motor Vehicle” executed between J. C. Longacre and Seltzer Chevrolet? A recitation of facts favorable to Stephens and Longacre is in order.

I

•Documents of Sale

On May 14, 1969, J. C. Longacre went to the Seltzer Chevrolet dealership in Yukon, Oklahoma. Longacre dealt with Bill Tarrant, a Seltzer Chevrolet salesman and agent. The undisputed facts establish that Longacre desired to trade in his Í956 l/^-ton Chevrolet panel truck on the purchase of a 1963 i^-ton pickup which was on the Seltzer lot. The dealership was to, and did, install a camper, four new tires and a rear bumper on the 1963 pickup. The exhibits and undisputed facts establish that four documents were promulgated during the trading, these four documents being filed with the Court by Sentry in conjunction with its Motion for Summary Judgment and being attached hereto as Appendices A, B, C and D. The first two documents (Appendices A and B) are notes or worksheets which refer to the terms of the trade and payments. The third document (Appendix C) entitled “CUSTOMER’S STATEMENT” sets out the family and credit particulars of J. C. Longacre. The fourth document (Appendix D) printed front and back and captioned “RETAIL ORDER FOR A MOTOR VEHICLE SELTZER CHEVROLET, INC.” sets out various data: The Retail Order discloses Tar-rant as the salesman; J. C. Longacre as the purchaser; is dated 5-14-69, and contains the printed phrase “PLEASE ENTER MY ORDER FOR THE FOLLOWING — USED—TRUCK.” The Retail Order discloses a USED CAR ALLOWANCE OF $100; CASH WITH ORDER $60 and terms of one $40 payment on May 22, 1969, with payments of $49.96 starting on June 25,1969.

The Retail Order contains the following declaration:

“Purchaser agrees that this Order includes all of the terms and conditions on both the face and reverse side hereof, that this Order cancels and supersedes any prior agreement and as of the date hereof comprises the complete and exclusive statement of the terms of the agreement relating to the subject matters covered hereby, and that THIS ORDER SHALL NOT BECOME BINDING UNTIL ACCEPTED BY DEALER OR HIS AUTHORIZED REPRESENTATIVE. Purchaser by his execution of this Order acknowledges that he has read its terms and conditions and has received a true copy of this Order.” (emphasis in original)

The Retail Order evidenced the subsequent transfer of possession of the 1963 Chevrolet y2-ton pickup from Seltzer Chevrolet to J. C. Longacre. Soon after completion, of the Retail Order, Seltzer Chevrolet proceeded to install the four new tires, the new rear bumper and the camper as specified in the Retail Order, and the vehicle was delivered to Mr. Longacre on May 16, 1969. Longacre then took the vehicle to his ranch and there continued to have possession and control of it. While the vehicle was in his possession, it is alleged that it was involved in the accident hereinafter described.

II

History of State Court Case

On May 30, 1969, at approximately midnight, Melvin Stephens was traveling to Watonga, Oklahoma, driving a Hertz rental car. Stephens was driving west on the Northwest Highway in Canadian County when his automobile collided with a horse owned by J. C. Longacre which Longacre was attempting to return to the corral from which the horse had escaped. Longacre thereafter failed to make payments due on the pickup described above, and Seltzer Chevrolet subsequently reacquired possession of the pickup truck.

[1267]*1267Stephens thereafter filed suit against Longacre, Cause No. 69-129, District Court of Canadian County, State of Oklahoma.

On October 30, 1973, an attorney for Stephens delivered the following letter to Longacre, (Appendix E).

“Mr. J. C. Longacre 414 Yukon Avenue Yukon, Oklahoma
Re: Melvin Stephens vs.
J. C. Longacre
Dear Mr. Longacre:
This letter confirms our agreement whereby the plaintiff, Melfin(sic) Stephens, by and through his attorney, agrees and binds himself to furnish you a release and satisfaction of judgment which will be filed in your behalf at no cost to you in the above styled cause of action in the event that the plaintiff is unable to make any collection of the judgment in this case from Sentry Insurance Company

and/or Seltzer Chevrolet.

Sincerely yours,
/s/ Don Porter
DON PORTER, Attorney”

On November 9, 1973, Stephens’ attorney appeared in the District Court of Canadian County'and took default judgment against Longacre in the amount of $1,590,000.00. Journal Entry of Judgment was entered December 11, 1973, the District Court of Canadian County stating therein that Longacre had been using the 1963 pickup acquired from Seltzer to herd his horses along the way. Further, that the horses were being herded east in the westbound lane of the highway; that Longacre saw Stephens’ automobile approaching, blinked the truck headlights and blew the horn and then “herded the horse into the windshield of the plaintiff (Stephens) causing him to receive a broken neck . . . . ” and that Longacre was driving a pickup “belonging to Seltzer Chevrolet Company, Inc. of Yukon, Oklahoma.

Motions for orders in aid of execution against Sentry, as insurer of Seltzer Chevrolet, were then filed December 26, 1973. April 8, 1974, Sentry filed CIV-74-351 for declaratory judgment in this Court. May 6, 1974, Stephens filed Application for Specific Findings of Fact by the District Court of Canadian County, the Findings thereafter filed on May 15, 1974, stating in part:

“. . . Sentry . . . appears . not as a party herein, but pursuant to discovery ... to determine whether Sentry Insurance holds an equitable interest subject to execution inuring to the benefit of third party beneficiary Plaintiff herein, Melvin Stephens.
THE COURT FINDS:
Canadian County Court
3. That said Sentry Plan Policy provided coverage for permissive users of motor vehicles.
4. That said Defendant, J. C. Long-acre, was a permissive user under the terms of said policy.
8. That Melvin Stephens, Plaintiff herein is a third party beneficiary under said contract of insurance.
9. That Sentry Insurance holds an equitable interest innuring (sic) to the benefit of Plaintiff herein, Melvin Stephens, pursuant to said contract of insurance.”

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Related

Spriggs v. Wolf
496 F. Supp. 990 (W.D. Oklahoma, 1979)

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Bluebook (online)
403 F. Supp. 1264, 1975 U.S. Dist. LEXIS 15523, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sentry-insurance-v-longacre-okwd-1975.