Teter v. Morris

650 S.W.2d 277
CourtMissouri Court of Appeals
DecidedMarch 29, 1983
DocketWD 32915
StatusPublished
Cited by14 cases

This text of 650 S.W.2d 277 (Teter v. Morris) 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
Teter v. Morris, 650 S.W.2d 277 (Mo. Ct. App. 1983).

Opinion

MANFORD, Presiding Judge.

This appeal challenges the entry of a summary judgment. The judgment is affirmed.

Two points charge the trial court with error in granting summary judgment because (1) an indemnity release created a present obligation and (2) there existed a genuine issue of fact.

The source of this litigation was a serious vehicular accident which occurred on January 14,1968. The accident involved a semi-truck operated by John Morris. Morris was, at the time, accompanied by a co-driver, his nephew and appellant, James Teter. The semi-truck overturned on 1-80 in the state of Iowa and both Morris and Teter were injured. Teter’s injuries resulted in complete paralysis below the neck. The semi-truck was owned by Edward Philp, a resident of Iowa, who is in the freight transportation business under contract to both private and common carriers. At the time of this accident, the semi-truck was *279 under lease from Philp to Indiana Refrigerator Lines, Inc. The trip lease was for the purpose of transporting beef from Sioux City, Iowa to Bangor, Maine. Morris was the employee-driver of Philp, and his compensation was to be a percentage of the gross rental received by Philp. Teter was to be paid by Morris from monies received from Philp. The lease agreement designated drivers and driver helpers as employees of the contractor (Philp) and not the carrier (Indiana).

Subsequent to the accident, both Morris and Teter filed workmen compensation claims in Iowa against Philp and Indiana. Philp had workmen’s compensation insurance coverage with the Travelers Indemnity Company (respondent) and Indiana was insured by the Transport Indemnity Company. Under procedures in Iowa, Philp and respondent (Travelers) filed an arbitration proceeding before the Iowa Industrial Commission. The purpose of the arbitration proceeding was to determine which party was responsible for workmen’s compensation benefits and whether the employer was responsible for benefits to Morris and Teter. Named as parties were Teter, Morris, Indiana and Transport Indemnity. The insurance carrier liability would be determined from an evaluation of employer responsibility.

During the pendency of the arbitration proceedings, Philp and Travelers, represented by an attorney (Smith), compromised the arbitration action with Indiana and Transport Indemnity, who were represented by an attorney (Langdon). Philp and respondent received $250.00 from Indiana and Transport Indemnity in exchange for the agreement by Philp and Travelers that the latter were the responsible employer and carrier. This indemnifying agreement has become the focus of the present appeal. With the execution of the indemnifying agreement, the arbitration proceedings were dismissed. The indemnifying agreement was executed on December 9, 1968.

Teter then filed a common-law action for negligence against Morris in the 16th Judicial Circuit of Missouri in January, 1970. Transport Indemnity Company was the insurer for Indiana Refrigerator pursuant to an automobile liability policy, effective the date of the accident (January 14, 1968). Morris made demand upon Transport to assume his defense and pay any judgment rendered against him. Transport disclaimed Morris as an insured under its policy and denied it had any duty to defend or pay any judgment rendered against Morris. A non-waiver agreement was entered into between Transport and Morris, and Transport, without waiving its denial of coverage, defended Morris.

Transport then filed an action seeking declaratory judgment to determine that Morris was not an insured under its policy. Morris and Teter were joined in this proceeding. While this declaratory judgment proceeding was pending, Teter and Morris, under date of August 28,1974, entered into an “Agreement to Limit Recovery to Specified Assets” prior to trial of the common-law action. In this “agreement”, Teter and Morris agreed they would attempt to collect only against Philp, Indiana, or any insurer insuring the legal liability of Morris.

On March 10, 1976, the 16th Judicial Circuit Court entered judgment for Morris and against Transport in the declaratory judgment proceedings. An appeal of that judgment was filed. While the appeal was pending, trial on the common-law action (Teter v. Morris) was had, resulting in a judgment for Teter and against Morris in the sum of $937,500.00. Judgment was entered February 15,1978. An appeal of that common-law judgment was filed by Morris but was later dismissed. This judgment remains unsatisfied.

On November 27, 1978, the declaratory judgment in the proceedings between Transport v. Teter and Morris was reversed and Transport was found not to be obligated to defend Morris in the common-law action (Teter v. Morris), or to pay any judgment. Transport Indemnity Co. v. Teter, 575 S.W.2d 780 (Mo.App.1978).

Following the ruling in Transport, Morris dismissed his appeal from the common-law action judgment, and on December 1, 1978, *280 filed this third-party action, naming Travelers (respondent) as defendant and alleging that Travelers was obligated to pay the judgment of the common-law action (Teter v. Morris) rendered against him. Teter and Transport then filed third-party claims against Travelers. The parties entered into a stipulation of facts. On February 9,1981, Travelers (respondent) filed its motion for summary judgment. On June 12, 1981, the trial court entered its memorandum and order sustaining Travelers’ motion for summary judgment. This appeal followed.

Under point (1), appellants (hereinafter referred to as Teter) charge that the trial court erred in granting summary judgment in respondent’s (hereinafter referred to as Travelers) favor because the indemnity release “created a present obligation.” Under this point, Teter offers ten subpoints in support. These points are taken up and disposed of in the sequence presented.

Under the first subpoint (A), Teter contends that the terms of the indemnity agreement clearly establish that Travelers intended and assumed the obligation to protect and indemnify firms and persons from liability arising from the accident. He also contends that John Morris is a person within the terms and intent of the indemnity agreement and that it is not necessary to consider extrinsic evidence to determine the legal effect of the indemnity agreement.

The agreement reads as follows:

“INDEMNIFYING RELEASE
FOR THE SOLE CONSIDERATION OF Two Hundred and Fifty ($250.00) Dollars, the receipt and sufficiency whereof is hereby acknowledged, the undersigned hereby release and forever discharge Indiana Refrigerator Lines, Inc.

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Bluebook (online)
650 S.W.2d 277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/teter-v-morris-moctapp-1983.