Transit Casualty Co. v. Transit Casualty Co.

43 S.W.3d 293, 2001 WL 221616
CourtSupreme Court of Missouri
DecidedApril 24, 2001
DocketSC 82520
StatusPublished
Cited by46 cases

This text of 43 S.W.3d 293 (Transit Casualty Co. v. Transit Casualty Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Transit Casualty Co. v. Transit Casualty Co., 43 S.W.3d 293, 2001 WL 221616 (Mo. 2001).

Opinions

HOLSTEIN, Judge.

Pulitzer Publishing Company (Pulitzer) appeals from a judgment denying its motion to unseal court records relating to the compensation and bonuses paid to respondent Burleigh Arnold, the special deputy receiver (SDR) appointed to administer the Transit Casualty Company in Receivership (TCCR) liquidation. Pulitzer argues that TCCR failed to demonstrate compelling circumstances that justify the closure of open court records. TCCR responds that the receivership court in its discretion properly let the records remain sealed due to the real risk of damage, to TCCR policyholders and creditors. After opinion by the Court of Appeals, Western District, this Court granted transfer. Mo. Const, art. V, sec. 10. The judgment of the circuit court is reversed, and the case remanded with directions to rehear the case under the presumption that court records should be open to the public absent a compelling justification for their closure.

I.

Transit Casualty Company was a Missouri-chartered property and casualty insurance company licensed to write policies nationwide. In December 1985, the Circuit Court of Cole County declared Transit Casualty insolvent and placed the company into receivership under chapter 375, RSMo, creating TCCR. This receivership is perhaps the largest property and casualty insurance company liquidation in United States history, with approximately 200,000 creditors and liabilities of about $4,000,000,000. To date, TCCR has recovered about $1,000,000,000 from suits against reinsurers and others and continues to recover an estimated $100,000,000 per year. The liquidation has been ongoing for over 15 years and may take more than another decade to conclude.

The director of the department of insurance (Director) is the statutory receiver of TCCR for the purposes of this liquidation. Sec. 375.95Í.1.1 There have been several directors since the inception of the receivership in 1985. One of these former directors, exercising his statutory authority under section 375.650.2, appointed the current special deputy receiver, Mr. Burleigh Arnold, in 1987. Mr. Arnold’s statutory duty as SDR, under the supervision of the receivership court, is to maximize TCCR’s assets for the ultimate benefit of and distribution to the policyholders and creditors of the insolvent company. Sec. 375.650.1. Mr. Arnold also manages the daily business of TCCR as the equivalent of a chief executive officer. His compensation is [297]*297paid out of TCCR’s assets and must be approved by the receivership court.

Pulitzer is the publisher of the St. Louis Post-Dispatch, a newspaper of general circulation in Missouri that often publishes articles about proceedings in Missouri courts, including coverage of this insurance receivership. In 1998, the receivership court permitted Pulitzer to intervene in the TCCR proceedings for the limited purpose of seeking access to certain in camera records containing information about Mr. Arnold’s compensation, bonus, and contract terms.2 These records and the records of other key TCCR employees are held in camera by the court, originally at the request of a former director. They are available to TCCR’s creditors and policyholders, and the department of insurance, but not to the general public. As a precondition to disclosure, those with access to the records must agree not to disclose the information to others.

At the evidentiary hearing on the motion, Pulitzer called one witness, Mr. Steven Divine, chief financial examiner and director of the division of financial regulation at the department of insurance. Mr. Divine testified that in 1994, the department of insurance promulgated a regulation, 20 CSR sec. 200-15.100, requiring public disclosure of the compensation and bonuses paid to SDRs of insolvent insurance companies in Missouri. He also testified that TCCR was relieved from compliance by order of the receivership court in 1995, but that all other insurance company receiverships have satisfied the regulation. He added that it was his understanding that this public disclosure by the other receiverships had not resulted in financial harm to them. He further testified that in his opinion public disclosure of Mr. Arnold’s compensation would also not damage TCCR.

TCCR then called five witnesses who testified, essentially, that public access to information of Mr. Arnold’s compensation would cause financial harm to TCCR’s policyholders and creditors. Mr. Arnold himself was one of these witnesses called by TCCR. TCCR’s claim is that reinsurers will use the information as leverage against TCCR during negotiations, and as an affirmative defense to TCCR’s lawsuits brought to recover on reinsurance contracts. TCCR witnesses also testified that the records contain confidential employment information and that disclosure would violate the employees’ privacy rights.

The receivership court ruled in favor of TCCR, finding “the evidence presented by Transit that the in camera orders were necessary to protect the Receivership’s policy-holders, creditors and their assets to be credible and uncontradicted.”

II.

The right to appeal is purely statutory, and with certain exceptions this Court has jurisdiction of appeals by aggrieved parties from final judgments. Sec. 512.020; Farinella v. Croft, 922 S.W.2d 755, 756 (Mo. banc 1996). For our purposes, a party is aggrieved within the meaning of the statute when “it suffers an infringement or denial of some legal right.” Jackson County Bd. of Election Comm’rs. v. Paluka, 13 S.W.3d 684, 687 (Mo.App.2000). TCCR alleges that Pulitzer is not an aggrieved party. As a member of the public, however, Pulitzer had an inherent interest in the court records that [298]*298is recognized by the common law. Nixon v. Warner Communications, Inc., 435 U.S. 589, 597-98, 98 S.Ct. 1306, 55 L.Ed.2d 570 (1978). It follows logically that Pulitzer is the aggrieved party when its very directed attempt to unseal public records in which it has a legal interest is denied. The court’s order disposed of one complete claim as to one party, Pulitzer, and otherwise qualified as a judgment. Committee for Educ. Equality v. State, 878 S.W.2d 446, 451 (Mo. banc 1994); Rule 71.01.

Whether the order in question is a final judgment is the more difficult question. A final judgment is normally defined as one that resolves “all issues in a case, leaving nothing for future determination.” Gibson v. Brewer, 952 S.W.2d 239, 244 (Mo. banc 1997). Its converse is an interlocutory judgment-one that is defined as “not final” and that generally decides some point or matter between the commencement and the end of a suit, but that is not a final decision of the whole controversy. Albright v. Kelley, 926 S.W.2d 207, 210 (Mo.App.1996). The order here would normally be an interlocutory judgment. The trial court is free at any time while it retains jurisdiction over the receivership to reconsider its decision and open some or all of the records. All parties agree that innumerable claims by and against Transit Casualty remain pending with numerous issues that still must be resolved with respect to numerous parties in interest.3

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Cite This Page — Counsel Stack

Bluebook (online)
43 S.W.3d 293, 2001 WL 221616, Counsel Stack Legal Research, https://law.counselstack.com/opinion/transit-casualty-co-v-transit-casualty-co-mo-2001.