Adams v. Usaa Cas. Ins. Co.
| Decision Date | 31 August 2010 |
| Docket Number | No. ED 93802.,ED 93802. |
| Citation | 317 S.W.3d 66 |
| Parties | David ADAMS, et al., Appellants,v.USAA CASUALTY INSURANCE COMPANY, and Shelter Mutual Insurance Company, Respondents. |
| Court | Missouri Court of Appeals |
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E. Ryan Bradley, Clayton, MO, for appellants.
Thomas J. Magee, Meg. L. Fowler, Seth G. Gausnell, Michael S. Hamlin, St. Louis, MO, for respondents.
David Adams, Landon Adams by Next Friend David Adams, and La Crysta Adams by Next Friend David Adams (Landon and La Crysta Adams hereinafter referred to collectively as “the Adams children”; all Adams collectively referred to as “Plaintiffs”) appeal from the trial court's grant of summary judgment in favor of USAA Casualty Insurance Company (USAA) and Shelter Mutual Insurance Company (Shelter) (USAA and Shelter collectively referred to as “Defendants”) in the Plaintiffs' action alleging tortious interference with contractual relations and conspiracy to commit fraud. We reverse and remand.
On or about January 7, 2008, Plaintiffs filed their cause of action, containing three counts: Count I-Tortious Interference of Contractual Relations, Count II-Negligent Interference with Contractual Relations,1 and Count III-Conspiracy to Commit Fraud. In this Petition, Plaintiffs alleged the following, as pertinent.
Timothy King (King), a Louisiana resident, was involved in a motor vehicle accident involving David Adams's wife La Jena Adams, and the Adams children. This accident caused the death of La Jena Adams, and significant personal injury to the Adams children.
At the time of the accident, King had a policy of automobile liability insurance issued by USAA in the State of Louisiana that provided limits of liability of $10,000 per person and $20,000 per accident. King was an “uninsured motorist” under Missouri law due to the limits of his liability coverage. David and La Jena Adams were insured under three separate Shelter insurance policies at the time of the accident: two with uninsured motorist liability limits in the amount of $25,000 per person and $50,000 per accident and one (on the car involved in the accident) with uninsured motorist limits of $50,000 per person and $100,000 per accident.
As designated beneficiaries under the terms of the Shelter policies, Plaintiffs made a demand for payment for the limits of their uninsured motorist coverage on all three policies. Plaintiffs received correspondence from USAA indicating that USAA would be “liberalizing” its policy by increasing the coverage to $25,000 per person and $50,000 per accident, to comply with Missouri's financial responsibility laws. The letter indicated that USAA transmitted a copy of this correspondence to Shelter. USAA knew Plaintiffs were insured under three separate contracts with Shelter.
After USAA afforded King additional coverage, Shelter took the position Plaintiffs were not entitled to recover under their uninsured motorist coverage and denied payment. Thereafter, Plaintiffs filed an action against Shelter in the Circuit Court of Oregon County, Missouri, in order to force Shelter to pay the uninsured motorist benefits to Plaintiffs.
In Count I of the Petition filed in this cause, Plaintiffs claimed that USAA intentionally interfered with their contractual relations with Shelter, causing or inducing a material breach of the three insurance policies without justification. Plaintiffs averred that, as a result of USAA's intentional conduct, Shelter denied their claim for compensation, causing them to sustain damages.
In Count III, Plaintiffs claimed that USAA and Shelter conspired to commit fraud upon Plaintiffs by engaging in an arrangement whereby USAA would pay more money than required by law or by its contractual relationship with King, thereby depriving Plaintiffs of their right to recover uninsured motorist benefits from Shelter. Plaintiffs alleged that USAA and Shelter concocted a scheme whereby Shelter would confer a benefit to USAA by “liberalizing” its policy limits, thereby minimizing the combined exposure for the two companies and allowing them to receive a windfall at Plaintiffs' expense. Plaintiffs alleged they made reasonable attempts to determine what information had been communicated between Defendants, but that Shelter failed to respond to their discovery attempts, giving Plaintiffs a reasonable basis to file their conspiracy count. After making this allegation, Plaintiffs stated: “As such, Plaintiffs file this lawsuit in an effort to elicit additional information to support its allegations in this Count.”
Thereafter, Defendants moved to dismiss, to transfer due to improper venue, and to stay the cause. In support of its Motion to Stay the Cause of Action, USAA argued that the cause should be stayed because issues arising from the accident were pending appeal in a lawsuit filed in Oregon County, Missouri. On March 6, 2008, the trial court granted Defendants' motions to stay, and deferred ruling on their motions to dismiss and to transfer.
Subsequently, the Missouri Court of Appeals, Southern District, reversed a grant of summary judgment to Shelter in the Oregon County action, in which the circuit court found that King was not the operator of an uninsured motor vehicle because USAA's policy provided liability coverage in the minimum amounts required by Missouri financial responsibility law ($25,000 per person and $50,000 per accident). Adams v. King, 275 S.W.3d 324, 326-28 (Mo.App. S.D.2008). After Application for Transfer was denied, the court issued its mandate on February 26, 2009.
In the Southern District appeal, Shelter had contended that King's vehicle was not uninsured because USAA voluntarily paid Plaintiffs benefits equal to the amount required by Missouri law, in accordance with the following language contained in King's USAA policy: “If an auto accident to which this policy applies occurs in any state or province other than the one in which your covered auto is principally garaged, your policy will provide at least the minimum amounts and types of coverages required by law.” Id. at 326-27. The Southern District, however, concluded that because no Missouri law required King to have liability insurance in accordance with Missouri's financial responsibility minimums, the language of the policy did not obligate USAA to pay these minimums. Id. The Southern District specifically stated that USAA's offer to pay the statutory minimum did not override the policy's language.
Defendants subsequently moved the trial court to lift the stay in this action contending the underlying matter on appeal was concluded. Shelter filed a Motion to Dismiss, or, in the Alternative, Motion for More Definite Statement; USAA filed a Motion to Dismiss, or, in the Alternative, Motion for Summary Judgment. Shelter subsequently filed an Amended Motion to Dismiss. On March 24, 2009, Plaintiffs filed a Motion to Stay Ruling on Defendant USAA's Motion to Dismiss, averring that the Circuit Court of Oregon County had not yet made its final ruling in the underlying matter and asking the court either to stay its ruling on USAA's motion or to deny the motion. In the event the court determined to hear the motion, Plaintiffs also requested to be allowed at least six months to conduct discovery.
On April 23, 2009, the trial court sustained Defendants' motions to lift the stay, announced that it would treat Defendants' motions to dismiss and alternative motions for summary judgment as summary-judgment motions, gave Plaintiffs thirty days to file their response to the motions, and allowed Defendants five days to file a reply to Plaintiffs' response.
In its Motion for Summary Judgment, USAA argued that, as to Plaintiffs' tortious-interference-with-contractual-relations count, the alleged interference by USAA did not induce or cause a breach of Plaintiffs' business expectancy because the Southern District determined USAA's offer to increase its limits was ineffective and irrelevant to override the policy's language. USAA further contended that Plaintiffs failed to allege that a breach was induced or caused by USAA's alleged intentional interference and therefore failed to assert a claim based on tortious interference with a contractual relationship. As to Plaintiffs' conspiracy-to-commit-fraud count, USAA argued that Plaintiffs did not allege with the required particularity their claim of fraud against USAA, thus failing to state a cause of action for civil conspiracy against Defendants. In support of its motion, USAA submitted a copy of a June 25, 2007 Interlocutory Order issued by the Oregon County circuit court and a memorandum of law. In this supporting memorandum, USAA additionally argued that Plaintiffs were collaterally estopped from bringing their cause of action because Plaintiffs were attempting to relitigate an issue of coverage already determined by a Missouri court. USAA also asserted in its memorandum that because USAA was contractually obligated by the language of King's policy and the law of Missouri to provide coverage of $25,000 per person and $50,000 per accident, USAA had justification for the alleged interference.
In its Amended Motion to Dismiss, Shelter argued that, as to the conspiracy-to-commit-fraud count (Plaintiffs' only count directed against Shelter), Plaintiffs failed to plead sufficient facts to state a claim for damages. Shelter further argued Plaintiffs failed to sufficiently state an underlying wrongful act or tort that would give rise to a conspiracy claim and failed to plead with any degree of particularity the false and material...
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