Utley v. State Farm Automobile Insurance

715 F. Supp. 330, 1989 U.S. Dist. LEXIS 7545, 1989 WL 73908
CourtDistrict Court, D. Kansas
DecidedJuly 5, 1989
DocketNo. 88-1546-K
StatusPublished

This text of 715 F. Supp. 330 (Utley v. State Farm Automobile Insurance) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Utley v. State Farm Automobile Insurance, 715 F. Supp. 330, 1989 U.S. Dist. LEXIS 7545, 1989 WL 73908 (D. Kan. 1989).

Opinion

MEMORANDUM AND ORDER

PATRICK F. KELLY, District Judge.

The present case arises from a one-car automobile accident which occurred on Feb[331]*331ruary 22, 1986. At the time of the accident, the driver of the car was Michael Collie. The accident caused damages to the car, and injuries to the passenger, John Utley. The car was owned by Jarrell Bridges and insured by State Farm Automobile Insurance Company.

State Farm brought a subrogation claim under Bridges’ name against Collie in Ford County, Kansas for damages to the car. This action (Case No. 87-C-37) included a claim by Bridges for punitive damages for Collie’s alleged reckless or wanton conduct. Bridges and State Farm were represented in this litigation by their attorney, William Bolin. (Pl.’s Memorandum, 117.) Utley subsequently intervened in the Bridges-Collie action, seeking recovery for his personal injuries.

One of the issues involved in the Ford County litigation was whether, on the night of the accident, Collie was operating the Bridges vehicle with consent. (PI., 111.) Utley contended that Collie was operating the car with the consent of Bridges through Bridges’ son, Derek. (PI., at A-7.) Bolin filed an answer to Utley’s petition, denying “every allegation” in the paragraph of the petition which asserted the existence of consent. (PL, at A-9.)

Utley again asserted the existence of consent in his pretrial questionnaire. (PL, at A-12.) Collie’s attorney also noted the existence of the issue in the pretrial questionnaire filed on behalf of his client. One of the questions of fact to be resolved is listed: “Did defendant operate insureds [sic] vehicle with consent?” (PL, at A-17.)

In the pretrial questionnaire filed on behalf of State Farm and Bridges, Bolin again denied the existence of consent. The questionnaire states:

In response to the Petition of Intervenor, the Defendant Collie did not have permission to operate Plaintiff’s vehicle and no one gave Defendant Collie either express or implied consent to drive said vehicle.

(PL, at A-19.) This position is also reflected in the pretrial order. The order recognizes Bridges’ contention that Collie was operating the car “without the permission of the owner or the owner’s son.” (PL, at A-30.)

The pretrial conference was held on May 25, 1988. At the conference, the subject of consent was discussed by the parties. According to an affidavit by the attorney for Collie, Bolin recognized the potential impact of the consent issue on coverage.

At the outset, Mr. Bolin requested a bifurcated trial on the issue of whether Michael Collie had permission to use the vehicle at the time of the collision. Mr. Bolin and other counsel explained to the court that the case was a subrogation case in which State Farm was suing in the name of its insured to recover damages paid under its collision coverage. Mr. Bolin told the court that in the event the jury found that Jason Collie had permission to use the vehicle at the time of the collision that this would make a realignment [sic] of the parties necessary. He would then be put in the position of having to defend the claim of the inter-venor.

(PL, at A-23.)

The Ford County court understood that a resolution of the consent issue would also resolve potential coverage issues. In explaining the bifurcation of the trial to the jury, the court stated that the jury’s decision on consent in the first phase of the trial “will determine the alignment of the parties for the second stage of this trial.” The court was also under the impression that this was the position of Bolin as well.

After the trial, Bolin argued that the jury’s finding of consent did not establish coverage under the State Farm policy for Utley’s damages. The court rejected Bo-lin’s argument as contrary to his earlier representations to the court, which had led the court to believe that “once we resolved the issue of permission, that resolved the issue of coverage of the carrier for who employs you, Mr. Bolin.” (PL, at A-26, A-27 & A-29.)

In the first phase of the trial, the jury was asked:

Did the Defendant, Michale [sic] Collie have permission express or implied to use the Plaintiff’s vehicle?

[332]*332(PI., at A-53.) The jury returned a positive response. In the following phase, the jury found for Utley in the amount of $45,-000.00. Neither Bridges nor State Farm appealed from this judgment. The jury also awarded Bridges $5,000.00 in punitive damages from the defendant Collie.

Following the Ford County judgment, Utley filed an order of garnishment against State Farm, which removed the matter to this court. The plaintiff, Utley, has filed a motion for summary judgment, contending that the issue of coverage is resolved by the previous positions taken by State Farm, through its attorney, in the Ford County litigation. State Farm has filed a response and a cross-motion for summary judgment.

Summary judgment is proper where the pleadings, depositions, answers to interrogatories, and admissions on file, together with affidavits, if any, show there is no genuine issue as to any material fact, and that the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c). In considering a motion for summary judgment, the court must examine all evidence in a light most favorable to the opposing party. Ewing v. Amoco Oil Co., 823 F.2d 1432, 1437 (10th Cir.1987). The party moving for summary judgment must demonstrate its entitlement to summary judgment beyond a reasonable doubt. Ellis v. El Paso Natural Gas Co., 754 F.2d 884, 885 (10th Cir.1985). Notwithstanding, the moving party need not disprove plaintiff’s claim; it need only establish that the factual allegations have no legal significance. Dayton Hudson Corp. v. Macerich Real Estate Co., 812 F.2d 1319, 1323 (10th Cir.1987).

Once the moving party has carried its burden under Rule 56(c), the party opposing summary judgment must do more than simply show there is some metaphysical doubt as to the material facts. “In the language of the Rule, the nonmoving party must come forward with ‘specific facts showing that there is a genuine issue for trial.’ Matsushita Electric Industrial Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) (quoting Fed.R.Civ.P. 56(e)) (emphasis in Matsushita). One of the principal purposes of the summary judgment rule is to isolate and dispose of factually unsupported claims or defenses, and the rule should be interpreted in a way that allows it to accomplish this purpose. Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).

A hearing on the parties’ motions was held on May 17, 1989.

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Bluebook (online)
715 F. Supp. 330, 1989 U.S. Dist. LEXIS 7545, 1989 WL 73908, Counsel Stack Legal Research, https://law.counselstack.com/opinion/utley-v-state-farm-automobile-insurance-ksd-1989.