Thompson v. Zurich Insurance

309 F. Supp. 1178, 1970 U.S. Dist. LEXIS 12778
CourtDistrict Court, D. Minnesota
DecidedFebruary 20, 1970
DocketNo. 2-66 Civ. 87
StatusPublished
Cited by2 cases

This text of 309 F. Supp. 1178 (Thompson v. Zurich Insurance) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thompson v. Zurich Insurance, 309 F. Supp. 1178, 1970 U.S. Dist. LEXIS 12778 (mnd 1970).

Opinion

NEVILLE, District Judge.

Plaintiff, T. Eugene Thompson, on December 6, 1963 was found guilty by a jury of the crime of murder in the first degree, having caused the felonious death of his wife, Carol S. Thompson. His conviction was affirmed by the Minnesota Supreme Court, State of Minnesota v. T. Eugene Thompson, 273 Minn. 1, 139 N.W.2d 490 (1966), and his appeal to the United States Supreme Court from the conviction was denied, Thompson v. Minnesota, 385 U.S. 817, 87 S.Ct. 39, 17 L.Ed.2d 56 (1966). Post conviction habeas corpus proceedings were filed in this court but dismissed for failure on Thompson’s part to exhaust his State court remedies. Thompson v. Tahash, 286 F.Supp. 663 (D.Minn. 1968). Such proceedings are now pending in State court. Thompson stated at the hearing before this court that he has appealed or intends to appeal from a denial of relief by the State court trial judge.

Independently of all of the above, on February 24, 1966, plaintiff commenced an action against the defendant Zurich Insurance Company in the Minnesota District Court, Faribault County, seeking recovery on a $25,000 life insurance policy claimed to be owned by him and insuring the life of the murdered victim, his wife Carol S. Thompson. The defendant timely removed the ease to this court where it has since remained inactive except for stipulations and orders of continuance, until the bringing of the present motion by defendant for a summary judgment in its favor.

It appears that plaintiff had a number of life insurance policies in six various insurance companies insuring the life of his wife Carol. Apparently these companies anticipated further suits, for on or about April 29, 1966 some two and a half months after the filing of the present suit, the six companies including this defendant the Zurich Insurance [1180]*1180Company commenced a joint action as co-plaintiffs in the Minnesota District Court in the form of a declaratory judgment action resisting payment of the proceeds of the various policies on the basis of Minn.Stat. § 525.87 titled “Murderer Disinherited”, and which applies inter alia to the “beneficiary of any policy of insurance.” On appeal the Minnesota Supreme Court held in Travelers Ins. Co. v. Thompson, 281 Minn. 547, 163 N.W.2d 289 (1968), that the insurance companies were entitled to summary judgment in their favor, thereby denying Thompson all rights in any of the policies. The court held that the judgment of conviction of first degree murder was a conclusive determination under the doctrine of collateral estoppel that Thompson had feloniously taken the life of the insured and that this issue thus could not be relitigated in a civil suit or suits against the various insurers ; that the Statute is designed to prohibit the murderer from profiting from his own crime; that the fact that the criminal conviction is not final in the true sense under Fay v. Noia, 372 U.S. 391, 83 S.Ct. 822, 9 L.Ed.2d 837 (1963), and succeeding cases because the defendant may have a review by way of habeas corpus at any time if constitutional rights are violated does not suspend the “operation of well-established rules of res judicata in civil cases.” Application for a re-hearing was made to, and denied by, the Minnesota Supreme Court and a subsequent attempt to appeal to the United States Supreme Court was denied Thompson v. Travelers Ins. Co., 395 U.S. 161, 89 S.Ct. 1647, 23 L.Ed. 2d 175 (1969). Judgment in favor of the insurance companies, including the present defendant Zurich Insurance Co. has now been entered in the State District Court and has become final.

The court need not decide whether, under the Minnesota Rules of Civil Procedure Thompson in the declaratory judgment action aforesaid might have interposed against the Zurich Insurance Company as one of the plaintiffs the defense that another action was pending, i. e., the one now before this court, so as to operate as the equivalent of the old plea in abatement. No such defense was made or asserted and the controversy between Zurich Insurance Company and T. Eugene Thompson involving exactly the same parties, exactly the same issues, and the same exact insurance policy was submitted to and determined by the Minnesota Court.

It seems very clear to this court that the decision of the Minnesota Supreme Court operates as res judicata, i. e., a thing adjudicated. The law of res judicata is firmly established and provides that whenever a court having proper jurisdiction has rendered a final judgment upon the merits of a cause of action, that judgment is binding upon the parties thereto. This is true not only as to the issues actually litigated but also to "every matter which could have been litigated." Towle v. Boeing Airplane Co., 364 F.2d 590 (8th Cir. 1966). Thus the generally accepted rule is that in subsequent litigation upon the same cause of action as in the prior suit, the parties and their privies are precluded from receiving any additional or differing relief. Towle, supra; Tait v. Western Md. Ry., 289 U.S. 620, 53 S.Ct. 706, 77 L.Ed. 1405 (1933); Baltimore S.S. Co. v. Phillips, 274 U.S. 316, 47 S.Ct. 600, 71 L.Ed. 1069 (1927); Engelhardt v. Bell & Howell Co., 327 F.2d 30 (8th Cir. 1964); Rhodes v. Meyer, 334 F.2d 709 (8th Cir. 1964). It is clear that the Minnesota rule of res judicata is the same as the general rule almost universally applicable. National Farmers Union Property & Cas. Co. v. Fisher, 284 F.2d 421 (8th Cir. 1960). This latter case collects the Minnesota cases apposite to this point.

In Rhodes v. Jones, 351 F.2d 884 (8th Cir. 1965), the factors in determining the applicability of the doctrine of res judicata were clearly set forth by the court. The court stated that the applicability of the doctrine only requires a showing:

“ * * * (a) that there has been a previous action between the same par[1181]*1181ties; (b) involving the same subject matter in which (c) a final judgment on the merits has been rendered with respect to the same cause of action.” 351 F.2d at 886

The Eighth Circuit in Rhodes v. Jones, supra defined a “cause of action” as a situation or state of facts which would entitle a party to sustain an action and give him the right to seek judicial interference in his behalf. Under the Federal Rules of Civil Procedure, the word “claim” denotes the same thing— “the aggregate of operative facts which give rise to a right enforceable in the courts.” Dery v. Wyer, 265 F.2d 804, 807 (2nd Cir. 1959). In Rhodes v.

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Bluebook (online)
309 F. Supp. 1178, 1970 U.S. Dist. LEXIS 12778, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-v-zurich-insurance-mnd-1970.