Benham v. Pryke, s. FTL001623 and FTL00945 and C

• Decision Date: 21 March 1985
• Docket Number: Nos. 82CA1378,84CA0227,Nos. FTL001623 and FTL00945 and C,s. FTL001623 and FTL00945 and C,s. 82CA1378
• Citation: 703 P.2d 644
• Parties: Robert S. BENHAM, as Receiver of Manufacturers and Wholesalers Indemnity Exchange, Plaintiff-Appellant, v. John William PRYKE, as lead Underwriter personally and as Representative of those certain Underwriters at Lloyd's of London, Under Lloyd's Policiesover Notes U73167A and U7316B; and Excess Insurance Co., LTD., Defendants-Appellees. . I
• Court: Colorado Court of Appeals

Page 644

703 P.2d 644

Robert S. BENHAM, as Receiver of Manufacturers and Wholesalers Indemnity Exchange, Plaintiff-Appellant, v. John William PRYKE, as lead Underwriter personally and as Representative of those certain Underwriters at Lloyd's of London, Under Lloyd's Policies Nos. FTL001623 and FTL00945 and Cover Notes U73167A and U7316B; and Excess Insurance Co., LTD., Defendants-Appellees.

Nos. 82CA1378, 84CA0227.

Colorado Court of Appeals Div. I.

March 21, 1985.

Rehearings Denied April 18, 1985.

Certiorari Denied Pryke Aug. 19, 1985.

Certiorari Granted Benham Aug. 19, 1985.

Holmes & Starr, P.C., Sidney W. DeLong, Kenneth L. Starr, Denver, for plaintiff-appellant.

Kenneth C. Groves, Philip A. Rouse, Jr., Denver, for defendants-appellees.

PIERCE, Judge.

Plaintiff, the receiver of Manufacturers and Wholesalers Indemnity Exchange (M & W), appeals the summary judgment in favor of defendants, underwriters of Lloyd's of London (the reinsurers). This is an action to recover proceeds claimed to be due under assessment liability reinsurance policies issued by the reinsurers to some subscribers of M & W. We reverse.

M & W was an interinsurance exchange governed by § 10-13-101, et seq., C.R.S. Consequently, M & W subscribers were subject to contingent assessment liability if M & W's liabilities in a given year exceeded its assets. Some subscribers, to negate this risk, purchased reinsurance certificates from the reinsurers to cover possible assessment liability. The terms of reinsurance coverage were provided for in a "Master Agreement" between the subscribers of M & W and the reinsurers. We ruled in Benham v. Pryke, 636 P.2d 1339 (Colo.App.1981) that the currency of the Master Agreement extended until the termination of outstanding reinsurance certificates.

M & W was placed in receivership in 1975, and, in February 1977, the trial court ordered the receiver to levy assessments against all M & W subscribers whose policies were in effect during 1974 and 1975.

Subsequent to Benham, supra, the parties undertook discovery, and filed motions including motions for summary judgment. M & W in support of its motion submitted documents consisting of: the Master Agreement; a computer printout indicating the serial number of each reinsurance certificate, the name of the subscriber, the period of insurance, and the premium charged; a copy of the statements received from Lloyd's of London billing M & W for the issuance of certificates; a copy of M & W's check paying the premium for such issuance; and an affidavit by a custodian of M & W's files testifying from personal knowledge as to these documents.

I.

The reinsurers first argue that M & W's production of only a computer printout as evidence of the existence of the certificates is legally insufficient and entitles the reinsurers to a summary judgment. We disagree.

In Benham, supra, we said:

"The ultimate question then remains as to whether reinsurance coverage existed at the time of the 1977 assessment, and a genuine issue of material fact exists as to whether any certificates of reinsurance were issued so as to be in force at the time of the 1977 assessment."

Because such issues of material fact, and others, remained for resolution, we remanded and reversed a dismissal for failure to state a claim for relief granted in favor of defendants. Those same questions of material fact still remain unresolved at this time. By granting summary judgment without trial on these issues the court ruled improperly on the credibility of the proposed evidence in conjunction with the motion for summary judgment. See Discovery Land & Development Co. v. Colorado-Aspen Development Corp., 40 Colo.App. 292, 577 P.2d 1101 (1977).

The admissibility of the computer printout is governed by the rules of relevancy, authentication, and hearsay. M & W's documentation addresses the existence, issuance, and duration of the reinsurance certificates; thus, it is relevant. CRE 403. Although Colorado appellate courts have not addressed the issue of authentication of computer printouts, the notes of the advisory committee on the identical federal rule, Fed.R.Evid. 901(b)(9), state that the rule applies to computer-generated information. Additionally, CRE 1001(3) states that if data are stored in a computer, any printout shown to reflect the data accurately is an "original." Thus, authenticity should not be a bar here.

Computer records which are material and relevant are admissible under the business records exception to the hearsay rule if (1) the computer entries are made in the regular course of business; (2) those participating in the record making were acting in the routine of business; (3) the input procedures were accurate; (4) the entries are made within a reasonable time of the transaction involved; and (5) the information was transmitted by a reliable person with knowledge of the event reported. Palmer v. A.H. Robins Co., Inc., 684 P.2d 187 (Colo.1984); see United States...