Wright v. Kelleher

24 Mass. L. Rptr. 495
CourtMassachusetts Superior Court
DecidedSeptember 10, 2008
DocketNo. 021589A
StatusPublished

This text of 24 Mass. L. Rptr. 495 (Wright v. Kelleher) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wright v. Kelleher, 24 Mass. L. Rptr. 495 (Mass. Ct. App. 2008).

Opinion

Agnes, Peter W., J.

This case is before the court on a Motion filed by the defendants George Weston Bakeries, Inc. (“GWB”), George Weston Bakeries Distribution, Inc. (“GWBD”) and Arnold Foods Company, Inc. (“Arnold”) (collectively “GWB defendants”). The GWB defendants seek to have the claims against themselves and defendant David Kelleher (“Kelleher”) dismissed or in the alternative ask that summary judgment enter in their favor. The GWB defendants allege that they recently learned that Kelleher has entered into an agreement with the plaintiffs that discharges him from liability. The plaintiffs argue that the GWB defendants misrepresent the facts, misconstrue the agreement between the plaintiffs and Kelleher, and violate Superior Court Rule 9D by failing to label this motion as one for reconsideration. For the reasons below, the GWB defendants’ Motion to Dismiss or, in the Alternative Motion for Summary Judgment is ALLOWED as to the claims against them based on vicarious liability/respondeat superior and DENIED as to the claim by the plaintiffs that the GWB defendants engaged in negligent hiring.

BACKGROUND

The facts surrounding Kelleher’s work history, purchase of a distribution route, and operation of the route have already been set forth in detail in this Court’s (Fecteau, J.) earlier Memorandum of Decision and Order on the Motion of the Defendants, George Weston Bakeries Distribution, Inc., George Weston Bakeries, Inc., and Arnold Foods Company, Inc., For Summary Judgment [22 Mass. L. Rptr. 466]. Those facts are incorporated by reference into this decision.

The conflict in this case arises out of an accident that occurred on December 15, 2001, at about 8:40 p.m., when Kelleher’s vehicle collided with a vehicle driven by the decedent Kenneth Wright (“Wright”). Wright was transporting his three minor grandchildren, Tiarra Wright, Keshawn Wright and Kinzaqui Winters at the time. Wright suffered fatal injuries from the accident. Kelleher was arrested at the scene of the accident and a breathalyzer test found his blood alcohol level was .17/. 18. He was subsequently convicted for drunk driving and motor vehicle homicide and incarcerated. He remains incarcerated.

The plaintiffs have settled their direct claims against defendants Route Relievers, Inc. and B&G Leasing, Inc. for $425,000. The plaintiffs have also received $1.3 million from Kelleher’s personal and automobile insurer, Commerce Insurance Company (“Commerce”), after Kelleher authorized the payments and gave up any claims against Commerce. The release document notes that Kelleher authorized Commerce to pay out his insurance policy limits without requiring the plaintiffs to release any of their claims against him; however, a letter between plaintiffs’ counsel and Kelleher’s counsel also notes that the plaintiffs have agreed not to pursue any of Kelleher’s personal assets to satisfy any judgment against him in this case. This letter, dated May 5, 2005, stated:

Following up on our discussion of today, my understanding is that under no circumstances will the plaintiff seek the personal assets of David Kelleher. Further, as discussed, we have agreed to a high-low arrangement with respect to any judgment which may be entered against Mr. Kelleher, the high being $1,300,000 and the low being $1,300,000. If this understanding is correct, please sign below and return to me at the earliest opportunify.

The letter was signed by both attorney DeSimone for the plaintiffs and attorney McGowan, representing Kelleher, and was not provided to GWB defendants’ counsel until recently.

Further letters between counsel for plaintiffs, Kelleher and Commerce discussing this agreement were recently provided to counsel for the GWB defendants on June 12, 2008. GWB defendants allege they [497]*497requested these exact type of documents from plaintiffs in April 2004. These letters detail how the plaintiffs agreed not to pursue the personal assets of Kelleher in return for his signing off on the release of the insurance funds.

DISCUSSION

The standard for addressing a motion for reconsideration is fairly discretionary and it has been stated that “[t]hough there is no duty to reconsider a case, an issue, or a question of fact or law, once decided, the power to do so remains in the court until final judgment . . .” King v. Globe Newspaper Co., 400 Mass. 705, 707 (1987), quoting Peterson v. Hopson, 306 Mass. 597, 601 (1940). It is “within the inherent authority of atrial judge to ‘reconsider decisions made on the road to final judgment.’ ” Sullivan v. Utica Mutual Ins. Co., 439 Mass. 387, 401 (2003), quoting Franchi v. Stella, 42 Mass.App.Ct. 251, 258 (1997).

Although the GWB defendants brought this motion as a motion to dismiss or in the alternative for summary judgment and their prior motion for summary judgment was denied, this Court uses its inherent authority to consider the new issues and evidence through its powers of reconsideration.

I. The Agreement Between Plaintiffs and Kelleher

The GWB defendants argue that the agreement between the plaintiffs and Kelleher by which the plaintiffs agreed not to pursue any of Kelleher’s assets and Kelleher agreed to sign off on his insurance policies so they would receive $1.3 million dollars qualifies as a settlement agreement and thus, Kelleher should be dismissed from this case as should all vicarious liability/respondeat superior claims arising from his actions. The plaintiffs argue that the agreement should not function as a settlement agreement that would invalidate their vicarious liability/respondeat superior claims against the GWB defendants.

Black’s Law Dictionary defines a settlement as “(a]n agreement ending a dispute or lawsuit.” Black’s Law Dictionary 1377 (7th ed. 1999). In turn, a high-low agreement is defined as “[a] settlement in which a defendant agrees to pay the plaintiff a minimum recovery in return for the plaintiffs agreement to accept a maximum amount regardless of the outcome of the trial.” Black’s Law Dictionary 734 (7th ed. 1999). A high-low agreement may constitute a settlement even if it does not use the words “settlement” or “compromise.” Richard v. Wilde, 2001 WL 241523, at *4 (Mass.Super.Ct. Mar. 7, 2001) (Cratsley, J.) [12 Mass. L. Rptr. 669], citing Power v. Tomarchio, 701 A.2d 1371, 1373 (Pa.Super.Ct. 1997). See also, Fiegener v. Freeman-Oak Hül Health Sys., 996 S.W.2d 767, 771-73 (Mo.Ct.App. 1999) (high-low agreement constituted settlement); Malick v. Seaview Lincoln Mercury, 398 N.J.Super. 182, 190 (2008) (“a high low agreement is a type of settlement”). Where one party agrees to accept and another party agrees to pay a range of damages regardless of what amount a jury awards, such an agreement is a bargained-for exchange that determines a disputed issue, and thus a settlement. Richard, 2001 WL 241523 at *2 n.4, citing Shafer v. Cronk, 532 A.2d 1131-33 (N.J.Super.Ct. 1987).

The undisputed facts in the summary judgment record demonstrate that Kelleher and the plaintiffs agreed to a high-low agreement with a high of $1.3 million and a low of $ 1.3 million, with the understanding that the plaintiffs would not seek Kelleher’s personal assets.

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Bluebook (online)
24 Mass. L. Rptr. 495, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wright-v-kelleher-masssuperct-2008.