AmCom Insurance, Inc. v. Atkinson, F050138 (Cal. App. 5/10/2007)
| Decision Date | 10 May 2007 |
| Docket Number | F050138 |
| Court | California Court of Appeals Court of Appeals |
| Parties | AMCOM INSURANCE, INC., Plaintiff and Respondent, v. JEREMY ATKINSON, Defendant and Appellant. |
Appeal from a judgment of the Superior Court of Kern County, No. S-1500-CV-256158, Louis P. Etcheverry, Judge.
Young Wooldridge and Gregory A. Muir for Defendant and Appellant.
Woodall & Almeida and James C. Almeida for Plaintiff and Respondent.
Appellant Jeremy Atkinson was injured in a multi-vehicle accident while in the course and scope of his employment. The responsible party was an uninsured motorist. Atkinson applied for and received workers' compensation benefits from his employer's carrier, and entered into a compromise and release as to all future benefits in exchange for a lump sum payment. Thereafter, Atkinson filed a claim for future medical expenses pursuant to the uninsured motorist provisions of his employer's business auto insurance policy. Respondent AmCom Insurance, Inc., the representative of his employer's insurance company, filed the instant action for declaratory relief that Atkinson was barred from filing a claim under the uninsured motorist provisions based upon policy exclusions and the release of future workers' compensation benefits. The trial court agreed with AmCom's argument and found Atkinson's insurance claim was barred. Atkinson appeals and argues he could pursue a claim for future medical benefits under his employer's uninsured motorist coverage, pursuant to the provisions of Insurance Code1 section 11580.2. We will affirm.
On August 8, 2005, respondent AmCom Insurance, Inc. (AmCom) filed a complaint for declaratory relief in the Superior Court of Kern County against appellant Jeremy Atkinson (Atkinson). On September 13, 2005, Atkinson filed an answer, denied the allegations, and requested declaratory relief in his favor.
On November 1, 2005, the trial court received Atkinson's trial brief and a statement of stipulated facts. On November 4, 2005, the trial court received AmCom's trial brief. On November 10, 2005, the court conducted a hearing on the matter. On December 5, 2005, the trial court received AmCom's posttrial brief. On December 19, 2005, the trial court received Atkinson's posttrial brief. On December 30, 2005, AmCom filed a posttrial reply brief.
On February 2, 2006, the court filed a tentative ruling in favor of AmCom. On February 21, 2006, the court filed a judgment in favor of AmCom. On March 9, 2006, the notice of entry of judgment was filed.
On April 5, 2006, Atkinson filed a notice of appeal.
Atkinson was employed as a mechanic by Western Fabrication and Equipment (Western Fabrication) in Bakersfield. Western Fabrication had a workers' compensation policy with State Compensation Insurance Fund (SCIF). Western Fabrication also purchased a "Business Auto Coverage" liability insurance policy from Clarendon National Insurance Company, which included uninsured motorist coverage. AmCom is the authorized representative of Clarendon.
On the afternoon of November 15, 2002, Atkinson was driving a Ford F-450 truck, a vehicle owned by his employer, in the course of and scope of his employment, when he was injured in an accident involving two other trucks. Atkinson was headed eastbound on Rosedale Highway (State Route 58) and approached the intersection of Wegis Avenue. There were stop signs for vehicles traveling north/south on Wegis Avenue, but no stop signs for vehicles traveling east/west on Rosedale Highway.
Anton Safronov was driving a Ford F-350 truck southbound on Wegis Avenue, approached the stop sign at Rosedale Highway, and came to a complete stop at the intersection. Ray Startt was driving a Ford F-250 truck westbound on Rosedale Highway, approached the Wegis Avenue intersection, and intended to continue on Rosedale Highway since there was no stop sign.
Due to fog and poor visibility, Safronov failed to see Startt's vehicle as Startt crossed the intersection and continued westbound on Rosedale Highway. Safronov headed into the intersection, driving southbound on Wegis Avenue, and directly into the path of Startt's vehicle as Startt continued westbound on Rosedale Highway. Safronov stopped suddenly and Startt attempted to swerve around him, but the vehicles collided. The collision pushed Startt's vehicle into the eastbound lane of Rosedale Highway. Atkinson had been traveling eastbound on Rosedale Highway when Startt's vehicle headed toward him. Startt hit the left front end of Atkinson's vehicle. Atkinson lost control of his vehicle and hit a utility pole on the south shoulder of the road.
When the police arrived, they found Safronov standing on the shoulder of the road, and his vehicle had received moderate damage. Startt was pinned inside his vehicle, which had major front end damage. Atkinson's vehicle also had major damage to the left side, and the front and rear windows were shattered. Atkinson's head hit the windshield and his left foot was caught between the clutch and the emergency brake. Atkinson suffered injuries to his left ankle with fractures of the fourth metatarsal base, compression fractures of his fourth and fifth metatarsal heads, and cervical neck strain.
Safronov was found to be the responsible party because he failed to yield the right of way to approaching vehicles after stopping at a stop sign. Safronov was not insured. Safronov stated he had an international driver's license issued from Russia but this claim was not substantiated. The investigating officer found Safronov failed to yield the right of way to approaching vehicles after stopping at a stop sign (Veh. Code, § 21802, subd. (a)), and he was driving without a license (Veh. Code, § 12500, subd. (a)), and without proof of financial responsibility (Veh. Code, § 16028, subd. (a)).
Since the accident occurred in the course and scope of his employment, Atkinson filed a claim pursuant to Western Fabrication's workers' compensation policy with SCIF. Atkinson complained of constant pain in his left foot, numbness and limping, and a decreased range of motion. He received benefits including temporary and permanent disability, vocational rehabilitation, and medical and hospital expenses.
On March 15, 2003, Atkinson filed an application for adjudication of his claim with the Workers' Compensation Appeals Board (WCAB), because of a disagreement over SCIF's liability for temporary and permanent disability benefits, reimbursement for medical expenses, medical treatment, and all other benefits.
On August 12, 2004, Atkinson entered into a "Compromise and Release" (C&R) of his workers' compensation claim with SCIF. The C&R was executed on a preprinted form, with various terms handwritten into the agreement, and reflects that Atkinson was represented by counsel. The C&R states that Atkinson, the applicant, suffered injuries to his neck and left foot on November 15, 2002, while in the course and scope of his employment; he received medical and hospital benefits, and temporary and permanent disability payments; Atkinson had been fully compensated; and estimated future medical expenses would be paid by the "applicant." Atkinson agreed to release all future claims in exchange for a lump sum payment of $34,500. The settlement was based upon an agreed permanent disability rating of 36.5 percent.2
The preprinted language stated that Atkinson released and forever discharged his employer and SCIF, the employer's carrier, from "all claims and causes of action, whether now known or ascertained, or which may hereafter arise or develop as a result of said injury ...." (Italics added.) The preprinted language further stated that the settlement only applied to the rights and benefits under the workers' compensation law, and did not waive or resolve "civil claims, lawsuits or causes of action, which are not subject to the jurisdiction" of WCAB.3
After entering into the C&R with SCIF, Atkinson filed a claim with Clarendon for "the full breadth of tort claim damages," including future medical benefits, pursuant to the uninsured motorist provisions of his employer's automobile liability insurance policy with Clarendeon. AmCom, as Clarendon's authorized representative, initially accepted Atkinson's claim for future medical benefits since the responsible party for the vehicle accident was not insured. Atkinson states he requested formal arbitration and the matter was scheduled for arbitration when AmCom advised him that his claim was barred by the terms of the uninsured motorist policy.
Thereafter, AmCom filed the instant action for declaratory relief, and asserted Atkinson's claim for future medical benefits was barred because the employer's automobile liability and uninsured motorist policies contained exclusions for claims otherwise covered by workers' compensation benefits, Atkinson was injured in the course and scope of his employment, and the workers' compensation system would have covered all of his future medical expenses. AmCom also argued Atkinson's release of SCIF's future liability to pay medical benefits under the C&R further barred his ability to receive future medical benefits under the uninsured motorist coverage. AmCom requested a declaratory judgment on these issues.4 In turn, Atkinson's answer denied AmCom's allegations and requested a judicial declaration that neither the terms of the policy nor the C&R barred his claim for future medical expenses under the uninsured motorist policy.
The parties prepared pretrial briefs which explained the nature of their dispute. First, the dispute involved exclusionary language in the insurance policy which Western Fabrication purchased from Clarendon. The "Business Auto Coverage" policy covered damages arising from bodily injury resulting from an accident involving Western...
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