Buchanan v. Buchanan, 8624SC355

Decision Date25 November 1986
Docket NumberNo. 8624SC355,8624SC355
Citation350 S.E.2d 175,83 N.C.App. 428
CourtNorth Carolina Court of Appeals
PartiesAnita BUCHANAN v. Robert BUCHANAN, d/b/a Buchanan Import & Domestic Auto Sales, and the Travelers Indemnity Company.

Hal G. Harrison, Spruce Pine, for plaintiff-appellant.

Roberts, Cogburn, McClure & Williams by Steven D. Cogburn and Glenn S. Gentry, Asheville, for defendants-appellees.

ARNOLD, Judge.

Plaintiff contends that the trial court erred in granting summary judgment for the defendant. Specifically, plaintiff argues that the affidavits offered by plaintiff and the State Farm insurance adjuster who was involved in the signing of the release form indicate that the release was executed without any intention to excuse any other persons or firms. Plaintiff, citing Cunningham v. Brown, 51 N.C.App. 264, 276 S.E.2d 718 (1981), contends that the failure to accomplish this result constituted a mutual mistake of fact which required denial of defendant's motion for summary judgment. We disagree.

The Cunningham case is not dispositive on the issue involved in the case sub judice. In Cunningham, the plaintiff was a passenger on a motorcycle driven by her husband when they were struck by a tractor-trailer. For consideration, the plaintiff signed a release concerning any claim which she might have had against her husband and his insurance company. As a result of this signing she also released from liability "any other person, firm or corporation charged or chargeable with responsibility or liability," which included the driver of the other vehicle. Id. at 269, 276 S.E.2d at 723.

In Cunningham, the plaintiff claimed that before she signed the release the insurance adjuster assured her that no other claims would be affected. In that case, the court held that the plaintiff could avoid the effect of the signed release by showing that it was procured by fraud or through mutual mistake of fact. Id.

In the case sub judice, such avoidance is not possible because the defendant insurance company's liability is derivative in nature. See Durham v. Creech, 32 N.C.App. 55, 231 S.E.2d 163 (1977). The policy states that the Travelers Indemnity Company is liable to plaintiff only if the insured is "legally entitled to recover" from the owner or driver of the uninsured motor vehicle. Having settled and signed a release, neither plaintiff nor her husband can recover further damages from the parties covered by State Farm. Both plaintiff and her husband fully...

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19 cases
  • Sawyers v. Farm Bureau Insurance
    • United States
    • North Carolina Supreme Court
    • May 3, 2005
    ...the derivative nature of the UIM carrier's liability), disc. review denied, 338 N.C. 312, 452 S.E.2d 312 (1994); Buchanan v. Buchanan, 83 N.C.App. 428, 350 S.E.2d 175 (1986) (same), disc. review denied, 319 N.C. 224, 353 S.E.2d 406 Here, as surely in many interstate vehicular accident cases......
  • Farmers Alliance Mut. Ins. Co. v. Holeman
    • United States
    • Montana Supreme Court
    • January 6, 1998
    ...plaintiff who released third-party tort-feasor was precluded from asserting a claim against the carrier); Buchanan v. Buchanan (1986), 83 N.C.App. 428, 350 S.E.2d 175, 176 (holding defendant insurance company's liability for underinsured motorist benefits is derivative in nature and conclud......
  • Grimsley v. Nelson
    • United States
    • North Carolina Supreme Court
    • February 9, 1996
    ...N.C. 289, 294, 378 S.E.2d 21, 25 (1989) (UM carrier's liability is derivative of the tort-feasor's liability). In Buchanan v. Buchanan, 83 N.C.App. 428, 350 S.E.2d 175 (1986), disc. rev. denied, 319 N.C. 224, 353 S.E.2d 406 (1987), the plaintiff accepted a settlement from the tort-feasor's ......
  • Darby v. Mathis
    • United States
    • Georgia Court of Appeals
    • March 15, 1994
    ...policy which requires that the insured be "legally entitled" to recover damages from the underinsured motorist. In Buchanan v. Buchanan, 83 N.C.App. 428, 350 S.E.2d 175 (1986), the North Carolina Court of Appeals concluded that a general release executed in favor of an underinsured motorist......
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