Valley Forge Ins. Co. v. Alexander

640 So. 2d 925, 1994 WL 54929
CourtSupreme Court of Alabama
DecidedApril 8, 1994
Docket1921125
StatusPublished
Cited by17 cases

This text of 640 So. 2d 925 (Valley Forge Ins. Co. v. Alexander) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Valley Forge Ins. Co. v. Alexander, 640 So. 2d 925, 1994 WL 54929 (Ala. 1994).

Opinion

640 So.2d 925 (1994)

VALLEY FORGE INSURANCE COMPANY and Continental Casualty Company
v.
Linda Sharon ALEXANDER.

1921125.

Supreme Court of Alabama.

February 25, 1994.
As Modified on Denial of Rehearing April 8, 1994.

*926 Clarence L. McDorman, Birmingham, and David M. Gische and R. Darryl Cooper of Ross, Dixon & Masback, Washington, DC, for appellants.

John A. Henig, Jr. and Gregory L. Davis of Copeland, Franco, Screws & Gill, P.C., Montgomery, and E. Farley Moody II, Birmingham, for appellee.

PER CURIAM.

This is an appeal by two liability insurance carriers who claim that each had a right to intervene and to have the trial court amend or vacate a consent order based on a settlement reached by the parties in the underlying wrongful death action.

Valley Forge Insurance Company was the liability insurance carrier for Construction One, Inc., a defendant in the underlying wrongful death action. Continental Casualty Company ("Continental") is an affiliate of Valley Forge. Continental and Valley Forge sought to intervene in order to recover over half a million dollars that they allege was fraudulently taken from them by Linda Sharon Alexander while posing as the widow of the deceased, Frank Alexander.

Frank Alexander fell to his death from a scaffolding erected at a high school construction site in Coosa County. Linda Alexander, individually and as administratrix of the estate of Frank Alexander, filed a wrongful death action in the Circuit Court of Montgomery County against a number of defendants, including Construction One, the general contractor at the high school site. The trial court denied Construction One's motion for a summary judgment, holding that the contract between the Coosa County Board of Education and Construction One created a duty "to provide for the safety of the employees of independent subcontractors on the job site such as the decedent, Frank Alexander." (C.R. 28.)

On November 2, 1990, the trial court approved a pro tanto agreement between Construction One and Linda Alexander whereby Construction One settled the case for $537,000. *927 The November 2 order found that Linda Alexander was married to Frank Alexander and concluded that Laura Alexander, Linda's daughter who was born two weeks after Frank Alexander's death, was the only child of Frank Alexander.[1] The order established a payment schedule whereby Construction One would make separate payments over a period of years to Linda Alexander and to Laura Alexander.

On April 24, 1992, John A. Henig, Jr., guardian ad litem for Laura Alexander, filed a motion to alter, amend, or vacate the November 2, 1990, order approving the settlement between Linda Alexander and Construction One, on the ground that it was based on a fraud having been perpetrated upon the trial court.[2] In the motion, the guardian ad litem alleged that Linda Alexander was never married to Frank Alexander. After a hearing on the issue, the trial court ordered, on May 20, 1992, that the monies from the November 1990 settlement agreement between Linda Alexander and Construction One be redirected to Laura Alexander. In its May 1992 order, the court found that Linda Alexander was not lawfully married to Frank Alexander at the time of his death, and that Laura Alexander was entitled to all proceeds from the November 1990 settlement "because she was the only heir of Frank Alexander at the time of his death." (C.R. 83.) The trial court designated this order an "interim order" and reserved its jurisdiction over the case for the purpose of considering such other motions as might be necessary.

On June 11, 1992, Valley Forge and Continental moved to intervene and filed in support of their intervention a motion to alter, amend, or vacate the November 1990 and May 1992 orders. The motion to alter, amend, or vacate challenged the pro tanto settlement of the wrongful death claim on two grounds. First, the insurers contended that Linda Alexander's alleged fraud upon the court in representing herself to be the widow of Frank Alexander in her wrongful death action rendered the 1990 settlement void. The insurers further contended that the trial court had no jurisdiction to determine the paternity of Linda's child, Laura Alexander, in its 1990 order approving the settlement agreement, or that it lacked jurisdiction to determine that Laura Alexander was Frank Alexander's only heir in its 1992 order modifying the earlier settlement agreement. After conducting a hearing, the trial judge denied both motions. Valley Forge and Continental appeal.

In this appeal, we address only the question whether the trial court erred in denying intervention by the insurers; Valley Forge and Continental would first have to successfully intervene in this action in order to have standing to attack the orders based on the settlement. Generally, the grant or denial of a motion to intervene is within the discretion of the trial court and will not be disturbed on appeal unless there is an abuse of discretion. Millers Mut. Ins. Ass'n v. Young, 601 So.2d 962 (Ala.1992), citing Dearmon v. Dearmon, 492 So.2d 1004, 1006 (Ala. 1986).

Rule 24, Ala.R.Civ.P., which governs intervention, states in pertinent part:

"(a) Intervention of Right. Upon timely application, anyone shall be permitted to intervene in an action: (1) when a statute confers an unconditional right to intervene; or (2) when the applicant claims an interest *928 relating to the property or transaction which is the subject of the action and he is so situated that the disposition of the action may as a practical matter impair or impede his ability to protect that interest, unless the applicant's interest is adequately represented by existing parties."

Timeliness is the first condition that must be met in order to intervene. NAACP v. New York, 413 U.S. 345, 365, 93 S.Ct. 2591, 2603, 37 L.Ed.2d 648 (1973).

"Because the pressure to allow intervention `of right' under Rule 24(a) is by its very nature more compelling than is [the pressure to allow] permissive intervention, most courts tend to require less rigidity in evaluation of timeliness under Rule 24(a)."

Randolph County v. Thompson, 502 So.2d 357, 364 (Ala.1987), citing Diaz v. Southern Drilling Corp., 427 F.2d 1118 (5th Cir.), cert. denied, Trefina v. United States, 400 U.S. 878, 91 S.Ct. 118, 27 L.Ed.2d 115 (1970), rehearing denied, Trefina, A.G. v. United States, 400 U.S. 1025, 91 S.Ct. 580, 27 L.Ed.2d 638 (1971).

Linda Alexander contends that the motion to intervene was not timely made, because it was filed over 19 months after the November 2, 1990, order approving her settlement with Construction One. However, after a hearing in which evidence indicated that Laura Alexander was not lawfully married to Frank Alexander at the time of his death, the trial court issued its interim order of May 20, 1992, which amended the November 1990 order. The court reserved jurisdiction in that May 20 order to enter further orders as necessary. Valley Forge and Continental moved to intervene on June 11, 1992, within a month of the order amending the settlement order. Thus, the motion to intervene was timely made.

There is no statute conferring on Valley Forge and Continental an unconditional right to intervene. Rule 24(a)(1).

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Bluebook (online)
640 So. 2d 925, 1994 WL 54929, Counsel Stack Legal Research, https://law.counselstack.com/opinion/valley-forge-ins-co-v-alexander-ala-1994.