Wood v. Nunnery

730 S.E.2d 222, 222 N.C. App. 303, 2012 WL 3172356, 2012 N.C. App. LEXIS 945
CourtCourt of Appeals of North Carolina
DecidedAugust 7, 2012
DocketNo. COA11-750
StatusPublished
Cited by7 cases

This text of 730 S.E.2d 222 (Wood v. Nunnery) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wood v. Nunnery, 730 S.E.2d 222, 222 N.C. App. 303, 2012 WL 3172356, 2012 N.C. App. LEXIS 945 (N.C. Ct. App. 2012).

Opinion

STEELMAN, Judge.

The trial court erred in declaring that the judgment entered against defendant in a personal injury case had been satisfied.

I. Factual and Procedural History

On 10 May 2006, Terry Wayne Wood (plaintiff) was injured in an automobile accident in Harnett County as a result of the negligence of Jeremy Nunnery (defendant). On 30 April 2009, plaintiff filed a complaint against defendant, North Carolina Farm Bureau Mutual Insurance Company (Farm Bureau), and Firemen’s Insurance Company of Washington, D.C. (Firemen’s).

Farm Bureau was dismissed from the action and is not a party to this appeal. Firemen’s is the underinsured motorist carrier for plaintiff’s employer.1 Defendant was insured at the time of the accident by State Farm Mutual Automobile Insurance Company (State Farm). On 26 May 2009, defendant filed an answer to the complaint. On 15 June 2009, Firemen’s filed an answer to the complaint in its own name.

On 11 August 2010, a jury awarded plaintiff $300,000 in damages for his personal injuries, against defendant. On 31 August 2010, the trial court entered a judgment directing that plaintiff recover damages in the amount of $300,000.00 along with interest at the statutory rate of 8% from 30 April 2009 from defendant'.2 On 2 September 2010, State Farm paid its policy limit of $30,000 into the office of the Forsyth County Clerk of Court. On 13 September 2010, Firemen’s paid $202,627.58 into the office of the Forsyth County Clerk of Court. Plaintiff had received workers’ compensation benefits totaling more than $148,000.00. The amount of the lien of plaintiff’s workers’ compensation carrier was reduced, by agreement, to $50,000.00.

[305]*305On 1 December 2010, defendant filed a motion for credit upon and satisfaction of the judgment and for Rule 11 sanctions against plaintiff’s counsel. On 13 December 2010, plaintiff filed a response and moved for an order compelling Firemen’s to divulge any agreement to waive subrogation rights and to produce the applicable insurance policy in effect on the date of the accident.

On 29 December 2010, the trial court entered an order declaring that the payments of $30,000.00 by State Farm and $202,627.58 by Firemen’s paid into the office of the Clerk of Superior Court of Forsyth County constituted payment in full of the judgment and that the judgment was satisfied. The trial court denied defendant’s motion for sanctions and plaintiff’s motions.

Plaintiff appeals.

On appeal, Firemen’s filed a brief that merely adopts the arguments of defendant and makes no independent arguments.

II. Satisfaction of Judgment

In his first argument, plaintiff contends that the trial court erred in concluding that the payments of State Farm and Firemen’s constituted satisfaction of the judgment entered against defendant. We agree.

The trial court held that the $30,000.00 from State Farm, $202,627.58 from Firemen’s, and the net benefit of $98,000.00 in workers’ compensation benefits ($148,000.00 less the reduced lien of $50,000.00) constituted a recovery to the plaintiff of at least $330,627.58. The trial court went on to hold that “the collective payments paid into the Office of the Clerk of Court of Forsyth County constitute full payment and satisfaction of the final Judgment entered herein.” In making its ruling, the trial court cited to N.C. Gen. Stat. §§ 1-239, 20-279.21(b) and (e); Manning v. Fletcher, 324 N.C. 513, 379 S.E.2d 854 (1989); Austin v. Midgett, 166 N.C. App. 740, 603 S.E.2d 855 (2004); and Walker v. Penn National, 168 N.C. App. 555, 608 S.E.2d 107 (2005).

A. Bases of Liability

We initially note that the trial court conflated the concepts of the amounts owed by defendant as the tortfeasor in this matter and the amount owed by Firemen’s as an underinsured motorist carrier (UIM). Plaintiff instituted this action against defendant, seeking monetary damages for personal injuries proximately caused by the negligence of defendant. The jury found that plaintiff’s injuries were [306]*306proximately caused by the negligence of defendant and awarded damages to plaintiff of $300,000.00. The trial court entered judgment against only defendant. This judgment was based upon defendant’s negligence and was a tort recovery.

The liability of Firemen’s is based in contract, not in tort. It is undisputed that Firemen’s was the UIM carrier for the vehicle that plaintiff was operating at the time of the accident and that plaintiff was an insured under Firemen’s UIM coverage. Firemen’s was notified of the pendency of this action, was afforded an opportunity to participate in this litigation, and in fact did participate in the litigation. Plaintiff does not dispute that the $202,627.58 paid by Firemen’s was the correct computation of Firemen’s liability to plaintiff under the UIM coverage of its policy.

Plaintiff’s argument on appeal is that the computation of defendant’s liability and the computation of Firemen’s liability are two different calculations and that, while Firemen’s contractual obligation under the UIM coverage has been discharged, defendant’s tort liability has not been so discharged.

B. N.C. Gen. Stat. § 20-279.21

N.C. Gen. Stat. § 20-279.21 does not determine a defendant’s responsibility to pay a judgment entered against him. N.C. Gen. Stat. § 20-279.21 is the principal statute governing automobile liability insurance policies in North Carolina, including minimum required policy amounts, uninsured motorist coverage, and underinsured motorist coverage. The provisions of this statute are deemed to be a part of every automobile insurance policy written in North Carolina and control over contrary provisions contained in such policies. Corbett v. Smith, 131 N.C. App. 327, 328-29, 507 S.E.2d 303, 304 (1998). Relevant provisions of this statute are as follows:

Underinsured motorist coverage is deemed to apply when, by reason of payment of judgment or settlement, all liability bonds or insurance policies providing coverage for bodily injury caused by the ownership, maintenance, or use of the underinsured highway vehicle have been exhausted. . . .
Underinsured motorist coverage is deemed to apply to the first dollar of an underinsured motorist coverage claim beyond amounts paid to the claimant under the exhausted liability policy.
In any event, the limit of underinsured motorist coverage applicable to any claim is determined to be the difference between the [307]*307amount paid to the claimant under the exhausted liability policy or policies and the limit of underinsured motorist coverage applicable to the motor vehicle involved in the accident. . . .

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Related

Hairston v. Harward
821 S.E.2d 384 (Supreme Court of North Carolina, 2018)
Hairston v. Harward
808 S.E.2d 286 (Court of Appeals of North Carolina, 2017)
Wood v. Nunnery
Court of Appeals of North Carolina, 2014

Cite This Page — Counsel Stack

Bluebook (online)
730 S.E.2d 222, 222 N.C. App. 303, 2012 WL 3172356, 2012 N.C. App. LEXIS 945, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wood-v-nunnery-ncctapp-2012.