Justia Missouri Supreme Court Opinion Summaries

Articles Posted in Insurance Law
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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

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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

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Yolanda Bell obtained an automobile insurance policy from Shelter General Insurance Company. In February 2018, her vehicle was damaged, and Shelter determined it was a total loss, paying her $11,787 after deductions. Bell filed a class action suit in February 2022, alleging that Shelter breached its contractual duties by not including taxes and fees required to acquire a replacement vehicle in its payment. Bell argued that the policy did not require her to replace the vehicle before being reimbursed for these costs.The Circuit Court of Jackson County dismissed Bell's petition without prejudice, agreeing with Shelter's argument that the policy only covered taxes and fees if they were actually incurred by purchasing a replacement vehicle. Bell appealed the decision, standing on her original petition rather than amending it.The Supreme Court of Missouri reviewed the case de novo. The court found that Bell's petition adequately pleaded a breach of contract claim by alleging the existence of the insurance policy, her performance under the policy, Shelter's failure to pay the required taxes and fees, and the resulting damages. The court emphasized that the interpretation of the policy's terms was a matter for summary judgment or trial, not for a motion to dismiss. Consequently, the Supreme Court of Missouri reversed the circuit court's judgment and remanded the case for further proceedings. View "Bell vs. Shelter General Insurance Company" on Justia Law

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In September 2016, Sanford Sachtleben and Luciann Hruza (the Buyers) purchased a property in Missouri from Perry and Joanie Sullivan (the Sellers). Prior to the sale, the city of New Melle had sued the Sellers over a barn they had built on the property, alleging it violated city zoning ordinances. The Buyers were added as defendants to this lawsuit after they purchased the property. The Buyers demanded coverage from their title insurance company, Alliant National Title Insurance Co. (Alliant), but Alliant refused. The Buyers then sued Alliant, claiming it had breached the title insurance policy by refusing to defend them in the New Melle lawsuit.The case was first heard in the Circuit Court of St. Louis County, where Alliant moved for summary judgment. The circuit court granted Alliant's motion, concluding that the unambiguous language of the title insurance policy provided no coverage for the Buyers. The Buyers appealed this decision.The Supreme Court of Missouri affirmed the lower court's decision. The court found that the title insurance policy was unambiguous and did not provide coverage for the Buyers. The court noted that the policy provided coverage only if a notice, describing any part of the land, was recorded in the public records setting forth the violation or intention to enforce. Since no such notice was recorded, the court concluded that the policy did not provide coverage. The court also rejected the Buyers' arguments that other provisions of the policy provided coverage, finding that these arguments were precluded by an exclusion in the policy. View "Sachtleben vs. Alliant National Title Insurance Co." on Justia Law

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The Supreme Court vacated the judgment of the circuit court confirming M.O.'s arbitration award in this personal injury action, holding that the circuit court erred in confirming the arbitration award because GEICO General Insurance Company was statutorily entitled to intervene in the pending lawsuit between M.O. and M.B. pursuant to Mo. Rev. Stat. 537.065.2.M.O. sued M.B. alleging that she had contracted HPV from M.B. while having sexual relations in M.B.'s vehicle, which was insured by GEICO. had sexual relations in M.B.'s vehicle, which was insured by GEICO. M.B. and M.O., without informing GEICO, entered into an agreement providing that M.O.'s claims were be submitted to arbitration but that M.O. would seek recovery of any judgment from M.B.'s insurers. The arbitrator awarded M.O. $5.2 million. M.O. then sued M.B. without informing GEICO. After GEICO filed its motion to intervene the circuit court confirmed the arbitration award. Thereafter, the circuit court sustained GEICO's motion to intervene. The Supreme Court vacated the circuit court's judgment, holding that GEICO was statutorily entitled to intervene in the underlying lawsuit before judgment was entered. View "M.O. v. GEICO General Insurance Co." on Justia Law

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The Supreme Court vacated the order of the circuit court entering summary judgment in favor of Alexis Still in this dispute over whether there was a settlement agreement between the parties, holding that there was no settlement agreement between the parties.Clifton Jameson and Still were involved in an automobile accident. Jameson sent MetLife, Still's insurer, an offer to settle. MetLife made a counteroffer. Jameson took the counteroffer as a rejection of his offer to settle and sued Still for damages arising from the accident. MetLife then attempted to accept Jameson's original settlement offer. The circuit court granted summary judgment for Still, concluding that MetLife's counteroffer did not terminate the settlement offer and that its subsequent letter of acceptance created a settlement agreement between the two parties. The Supreme Court vacated the judgment, holding that that the circuit court erred in granting summary judgment on the basis of settlement because no settlement agreement was reached. View "Jameson v. Still" on Justia Law

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The Supreme Court issued a permanent writ in prohibition directing Respondent, the Honorable Brian H. May, to vacate his orders in the case entered after Insurer filed its application for change of judge and to sustain the application for change of judge, holding that Insurer was entitled to the writ.In the underlying wrongful death suit Insurer filed a motion to intervene and stay proceedings while its contractual obligation to provide coverage was determined in a pending declaratory judgment action. Judge David Lee Vincent sustained the motion to intervene but overruled the motion to stay the proceedings. Thereafter, Judge Vincent entered an order of recusal, and the case was reassigned to Respondent. Insurer then filed this petition for writ of prohibition. The Supreme Court issued the writ and directed Respondent to vacate his order overruling Insurer's application for change of judge and the order sustaining a motion to quash Insurer's notice of deposition, holding that Insurer was entitled to a change of judge. View "State ex rel. COUNTRY Mutual Insurance Co. v. Honorable Brian H. May" on Justia Law

Posted in: Insurance Law
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The Supreme Court affirmed the decision of the Administrative Hearing Commission (AHC) finding that David and Gale Collison were not entitled to a sales tax credit following their purchase of a vehicle to replace another vehicle declared a casualty loss by their insurance company, holding that the Collisons could not prevail in this matter.In denying the requested sales tax credit the AHC found that a revocable trust, not the Collisons, owned the new vehicle and that the Collisions, and not the revocable trust, owned the replaced vehicle. On appeal, the Collisons argued that they and the revocable trust were the same owner of the separate vehicles and the same entity for purposes of the sales tax credit. The Supreme Court affirmed, holding that because Missouri law clearly considers a trust and the natural persons who create and control the trust to be separate and distinct entities, the Collisons and their revocable trust were legally separate owners. View "Collison v. Director of Revenue" on Justia Law

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The Supreme Court quashed this Court's preliminary writ of prohibition, holding that the issuance of the writ of prohibition sought by Key Insurance Company directing the circuit court to dismiss claims filed against it by Josiah Wright and Phillip Nash for lack of jurisdiction would be inappropriate.After arbitration, Wright filed a lawsuit against Key and Nash seeking to collect insurance proceed's from Nash's child's insurance policy. Nash filed a cross-claim against Key alleging that Key breached its contractual duty to defend him. Key filed a motion to dismiss the claims for lack of jurisdiction. The circuit court overruled the motion. Key then sought a writ of prohibition from the Supreme Court. The Court issued a preliminary writ of prohibition, which it then quashed, holding that where there had been no showing that the circuit court’s usurpation of jurisdiction was "clearly evident" and Nash adequately pleaded facts in his cross-claim that established personal jurisdiction, the issuance of a writ of prohibition would be inappropriate. View "State ex rel. Key Insurance Co. v. Honorable Marco A. Roldan" on Justia Law

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In this appeal from the circuit court's distribution of proceeds from Nicklaus Macke's wrongful death settlement the Supreme Court affirmed the judgment of the circuit court overruling Appellant's motion for a second continuance and in apportioning only a small percent of the wrongful death settlement to Appellant, holding that the circuit court did not err or abuse its discretion.Nicklaus, the son of Pamela Eden and Loren Macke (Macke), suffered fatal injuries in a motor vehicle collision with Austin Patton. Macke negotiated a settlement with Patton's insurance company, which offered to pay its policy limit in satisfaction of Macke's wrongful death claim against Patton. The circuit court apportioned ninety-eight percent of the settlement to Nicklaus' father and two percent to Eden, who played little to no role in Nicklaus' childhood and upbringing. The Supreme Court affirmed, holding (1) the circuit court did not err in overruling Appellant's motion for continuance; and (2) the circuit court did not erroneously apply the law in making its apportionment judgment, and the apportionment was not against the weight of the evidence. View "Macke v. Patton" on Justia Law