Justia Civil Procedure Opinion Summaries

Christopher Meek purchased a universal life insurance policy from Kansas City Life Insurance Company, which combined a standard life insurance policy with a savings account. Meek alleged that Kansas City Life improperly included profits and expenses in the cost of insurance, which was not mentioned in the policy, leading to a lower cash value in his account. Meek filed a federal lawsuit for breach of contract and conversion, and the district court certified a class of about 6,000 Kansans with Meek as the lead plaintiff.The United States District Court for the Western District of Missouri found that Meek's lawsuit was timely for payments going back five years under Kansas’s statute of limitations. The court granted partial summary judgment in favor of Meek on the breach-of-contract claim, interpreting the policy against Kansas City Life. The conversion claim was dismissed. A jury awarded over $5 million in damages, which was reduced to $908,075 due to the statute of limitations. Both parties appealed.The United States Court of Appeals for the Eighth Circuit reviewed the case. The court affirmed the district court’s class certification, finding that common questions of law and fact predominated. The court also upheld the application of Kansas law for both the conversion claim and the statute of limitations. The court agreed with the district court’s interpretation of the insurance policy, concluding that the cost of insurance should not include profits and expenses. The court found that the jury’s damages award was supported by reasonable evidence and did not warrant an increase.The Eighth Circuit affirmed the district court’s judgment, including the class certification, the application of Kansas law, the partial summary judgment in favor of Meek, and the damages award. View "Meek v. Kansas City Life Ins. Company" on Justia Law

In January 2021, Bertrand Nedoss, an 87-year-old resident of an assisted-living facility in Morton Grove, Illinois, wandered out of the facility, developed hypothermia, and died of cardiac arrest. His estate filed a negligence and wrongful-death lawsuit against Welltower Tenant Group, the facility’s owner, and Frontier Management, its operator. Welltower and Frontier were insured under a "claims made" policy by Church Mutual Insurance Company, effective from July 1, 2020, to July 1, 2021. The estate filed the lawsuit in October 2021, after the policy expired. However, nine days after Bertrand’s death, an attorney for the Nedoss family sent a letter to the facility, claiming an attorney’s lien and demanding evidence preservation.The United States District Court for the Northern District of Illinois ruled that the attorney’s letter qualified as a "claim" under the policy, triggering Church Mutual’s duty to defend. The court entered partial summary judgment for Welltower and Frontier and stayed the rest of the federal case pending the outcome of the state lawsuit.The United States Court of Appeals for the Seventh Circuit reviewed the case. On the eve of oral argument, Welltower and Frontier settled with the estate, and the state-court case was dismissed. This development mooted the appeal. The stay order was the only possible basis for appellate jurisdiction, and the partial summary judgment was not a final order. The Seventh Circuit dismissed the appeal as moot, noting that the dismissal of the state-court case removed the justification for the stay and rendered any appellate ruling on the stay irrelevant. View "Church Mutual Insurance Company v. Frontier Management, LLC" on Justia Law

In April 2013, Michael Riste applied for a bail bond for his son, Michael Peterson, and signed an Indemnity Agreement and a Premium Agreement with Bad Boys Bail Bonds (Bail Agent). The agreements required Riste to pay a $10,000 premium in installments. Peterson signed identical documents after his release. The Bail Agent executed a $100,000 bail bond on behalf of The North River Insurance Company (Surety), ensuring Peterson's appearance at future court proceedings. Peterson failed to appear, leading to the forfeiture of the bail bond and a summary judgment against the Surety in October 2015.The Superior Court of Los Angeles County denied appellants' previous motions to set aside the summary judgment, vacate the forfeiture, and exonerate the bond. Two different panels of the Court of Appeal affirmed these denials. In October 2020, a class action cross-claim was filed against BBBB Bonding Corporation (doing business as the Bail Agent), arguing that their bail bond premium financing agreements were subject to Civil Code section 1799.91 and thus unenforceable. The trial court agreed, and the Court of Appeal upheld this finding, affirming a preliminary injunction against BBBB.In September 2022, appellants filed a third motion to set aside the summary judgment, citing the Caldwell decision. They argued that the premium was part of the consideration for the bail bond, making the bond void and the summary judgment invalid. The trial court denied the motion.The California Court of Appeal, Second Appellate District, Division Three, affirmed the trial court's order. The court held that the bail bond was not void because the consideration for the bail bond was Peterson's release from custody, not the premium financing agreement. Therefore, the trial court had jurisdiction, and the summary judgment was valid. View "P. v. North River Ins. Co." on Justia Law

Universitas Education, LLC sought to recover funds lost in an insurance fraud scheme orchestrated by Daniel Carpenter, which defrauded Universitas of $30 million in life insurance proceeds. The fraud involved multiple corporate entities, including Avon Capital, LLC, and its affiliates. Universitas secured a civil judgment in the Southern District of New York for $30.6 million, including $6.7 million against Avon Capital, LLC. Universitas registered the judgment in Oklahoma and sought to garnish a $6.7 million insurance portfolio held by SDM Holdings, which Avon owned.The United States District Court for the Western District of Oklahoma granted summary judgment in favor of Universitas and authorized a receivership over Avon and SDM. Avon and SDM appealed, arguing procedural defects and disputes on the merits. The Tenth Circuit Court of Appeals vacated the summary judgment on mootness grounds, determining that the district court could not rely on the registered judgment because its five-year effective term had expired before the district court entered its order. The case was remanded for further proceedings.Upon remand, Universitas re-registered the New York judgment, and the district court re-entered summary judgment in favor of Universitas and reauthorized the receivership over Avon and SDM. Avon and SDM challenged the district court's jurisdiction and the re-entered orders. The Tenth Circuit Court of Appeals affirmed the district court's decision, holding that the district court retained jurisdiction to preserve the status quo during the appeal and properly re-affirmed its summary judgment and receivership orders after receiving the appellate mandate. The court concluded that Universitas did not need to file a new cause of action and that the district court did not abuse its discretion in its rulings. View "Universitas Education v. Avon Capital" on Justia Law

Marcus A. Fear was involved in a rear-end collision in 2018, resulting in injuries and medical treatment. He held an underinsured motorist (UIM) policy with GEICO and settled with the tortfeasor's insurer for $25,000. Fear sought additional compensation from GEICO, which offered $2,500 and later $4,004, but Fear did not accept these offers. He then sued GEICO for statutory bad faith under section 10-3-1115, alleging unreasonable delay in payment of his UIM claim.The case proceeded to a bench trial where experts disagreed on GEICO's handling of the claim. The district court found that $3,961 of Fear's non-economic damages were undisputed and ruled that GEICO violated section 10-3-1115. GEICO appealed, and the Colorado Court of Appeals reversed, concluding that non-economic damages are inherently subjective and that admitting GEICO's claim evaluation as evidence of undisputed benefits violated CRE 408.The Supreme Court of Colorado reviewed the case and agreed with the lower court that CRE 408 bars the admission of internal settlement evaluations to show undisputed benefits owed. However, it noted that such evaluations might be admissible for other purposes, such as establishing an insurer's good or bad faith. The court also concluded that non-economic damages could be undisputed or not subject to reasonable dispute in some cases, contrary to the appellate court's ruling that they are always reasonably disputable.Ultimately, the Supreme Court affirmed the appellate court's judgment, finding that Fear did not provide admissible evidence to show that any portion of his non-economic damages was undisputed or not subject to reasonable dispute. View "Fear v. GEICO Cas. Co." on Justia Law

Jeromy McCrackin filed a wrongful death action against Tynan Mullen for the death of McCrackin’s son, who was shot and killed outside a pool hall in 2019. Safeco Insurance Company of America had issued a homeowners insurance policy to Mullen’s grandmother, with whom Mullen allegedly lived at the time. Mullen was indicted for first-degree murder and armed criminal action but pleaded guilty to first-degree involuntary manslaughter and armed criminal action. McCrackin offered to settle the wrongful death claim against Mullen in exchange for Safeco’s agreement to pay the total liability coverage limits, which Safeco declined, stating the policy excluded coverage for intentional acts.The Circuit Court of Jackson County overruled Safeco’s motion to intervene in the wrongful death action for the purpose of seeking a stay until a separate federal declaratory judgment action could be resolved. Safeco had filed the federal action to determine whether it had a duty to defend or indemnify Mullen. The circuit court held a bench trial in the wrongful death action, overruled Safeco’s motion to intervene, and entered a judgment against Mullen, awarding McCrackin $16.5 million in damages.The Supreme Court of Missouri reviewed the case and held that Safeco had a right to intervene in the wrongful death action pursuant to Rule 52.12(a)(2) for the limited purpose of seeking a stay. The court found that Safeco had an interest in the wrongful death action and that the disposition of the action could impair or impede its ability to protect that interest. The court vacated the circuit court’s judgment and remanded the case for further proceedings consistent with its opinion. The court did not direct how the circuit court should rule on the motion to stay, leaving that decision to the lower court. View "McCrackin vs. Mullen" on Justia Law

Joe David Hudson was injured while working for Joplin Regional Stockyards, Inc. (JRS) in 2002. In 2005, Hudson, JRS, and JRS' insurer, Star Insurance Company, entered into a settlement agreement where Hudson received an $80,000 lump sum. The settlement left future medical expenses for Hudson's left ankle open. In 2011, Hudson had a below-the-knee amputation, which Star refused to cover. Hudson filed the settlement in circuit court in 2013, and the court rendered judgment in accordance with the settlement. Hudson later filed an equitable garnishment action, leading Star to pay $92,000 for his medical bills. In 2015, Star agreed to reimburse Hudson up to $610,311.75 for future medical expenses. In 2016, Hudson and JRS entered into a subordination agreement, acknowledging all payments due under the judgment had been received.In 2022, Hudson filed a motion to revive the judgment, which JRS opposed, arguing the judgment had been satisfied and the Division of Workers' Compensation had not determined the future medical care provision. JRS also filed a motion for relief from the judgment, claiming it was void due to lack of due process. The Circuit Court of Jasper County sustained Hudson's motion to revive the judgment and overruled JRS' motion for relief.The Supreme Court of Missouri reviewed the case and determined that JRS had standing to appeal. The court found that the circuit court erred in reviving the judgment because JRS had satisfied the judgment by paying the $80,000 lump sum. The court reversed the circuit court's order sustaining Hudson's motion to revive the judgment and overruled Hudson's motion to revive the judgment. Hudson's motion for damages for a frivolous appeal was also overruled. View "Hudson v. Joplin Regional Stockyards, Inc." on Justia Law

Donna Miller Bruenger, the ex-wife of the late Coleman Miller, filed a petition for declaratory judgment against Courtenay Ann Miller, Coleman’s daughter, seeking entitlement to Coleman’s Federal Employee’s Group Life Insurance (FEGLI) benefits. Coleman had failed to designate a beneficiary for his FEGLI benefits before his death, and MetLife distributed the benefits to Courtenay. Bruenger argued that Coleman’s legal obligation under a Qualified Domestic Relations Order (QDRO) to assign her the benefits should prevail.The Jefferson Circuit Court ruled against Bruenger, concluding that federal law precluded her claim because Coleman’s employer did not receive the QDRO before his death. Bruenger’s subsequent appeal was dismissed by the Court of Appeals as untimely, and the court also imposed sanctions for filing a frivolous appeal. Bruenger then sought relief under CR 60.02, which the trial court granted, allowing her to refile the appeal. The Court of Appeals dismissed the refiled appeal as frivolous and awarded attorney’s fees to Courtenay.The Supreme Court of Kentucky reviewed the case and determined that the Court of Appeals had jurisdiction to consider the merits of the CR 60.02 relief. The Supreme Court held that RAP 11(B) authorizes the award of attorney’s fees as a sanction for frivolous appeals but found that the imposition of sanctions in this case violated due process because Bruenger was not given notice or an opportunity to be heard. The Supreme Court affirmed the dismissal of the appeal for lack of jurisdiction but reversed the sanctions imposed by the Court of Appeals. View "BRUENGER V. MILLER" on Justia Law

In this case, the plaintiff, David Yaffee, was awarded $3,299,455 in damages by a jury for past and future economic earnings and noneconomic loss due to injuries sustained when his vehicle was rear-ended by a truck driven by Joseph Skeen, who was employed by KLS Transportation, Inc. The accident occurred in 2015, and Yaffee experienced significant medical issues, including back pain and leg tingling, leading to multiple medical treatments and surgeries.The Superior Court of Sacramento County entered a judgment on the jury's verdict, which included awards for past and future medical expenses, lost earnings, and noneconomic damages. Defendants, including National Liability & Fire Insurance Company, challenged the awards on several grounds, including the reasonableness of past medical expenses, the speculative nature of future medical expenses, and the sufficiency of evidence supporting lost earnings.The Court of Appeal of the State of California, Third Appellate District, reviewed the case. The court found that the trial court had erred in its interpretation of the Hospital Lien Act (HLA) regarding the measure of past medical damages, leading to the improper admission of evidence on the reasonable value of services. The court concluded that the HLA only applies to services provided while the patient remains in the hospital or affiliated facility following emergency services. Consequently, the award for past medical expenses was reversed.The court also found that the award for future medical expenses was not supported by substantial evidence, particularly regarding the speculative nature of the need for a dorsal root ganglion stimulator. The court reversed the award for future medical expenses and remanded for a new trial on this issue.The awards for past and future lost earnings were upheld, as the court found sufficient evidence supporting the jury's findings. The award for future noneconomic damages was also upheld, as the evidence established a reasonable certainty of future pain and suffering.The court vacated the award for costs and prejudgment interest, as these were based on the reversed portions of the judgment. The case was remanded for a new trial on the issues of past and future medical expenses. View "Yaffee v. Skeen" on Justia Law

Autumn Bertels was severely injured in a car accident involving her grandmother, Elizabeth Bertels, and another driver, Denver Barr, who both died in the crash. Autumn later filed a lawsuit against Elizabeth's estate, and they reached an agreement where the estate assigned its claims against Elizabeth's insurer, Farm Bureau Property & Casualty Insurance Company, to Autumn. The agreement stipulated that Autumn would not seek to collect from the estate's assets and would cover the estate's litigation expenses. A judge awarded Autumn a $15.75 million judgment against the estate, and she subsequently sued Farm Bureau for breach of contract and bad faith.The United States District Court for the District of Kansas dismissed Autumn's suit against Farm Bureau, ruling that she lacked standing because the assignment from the estate was invalid. The court determined that Autumn provided no consideration for the assignment, as her promises were already required by the Kansas nonclaim statute, which bars claims against a deceased person's estate after a certain period and requires the claimant to pay the estate's litigation expenses.The United States Court of Appeals for the Tenth Circuit reviewed the case and affirmed the district court's decision. The appellate court agreed that the nonclaim statute barred Autumn's claim against the estate's assets and required her to pay the estate's expenses, rendering her promises in the agreement illusory and without consideration. Consequently, the assignment was invalid, and Autumn lacked standing to sue Farm Bureau. The court also rejected Autumn's arguments regarding tolling of the nonclaim statute due to her minority and other constitutional claims, finding them unpersuasive or procedurally barred. View "Bertels v. Farm Bureau Property & Casualty Insurance Co." on Justia Law