Com. v. Arbella Mut. Ins. Co.

• Decision Date: 25 July 2005
• Docket Number: No. 04-P-1072.,04-P-1072.
• Citation: Com. v. Arbella Mut. Ins. Co., 831 N.E.2d 389, 64 Mass. App. Ct. 901 (Mass. 2005)
• Parties: COMMONWEALTH<SMALL><SUP>1</SUP></SMALL> v. ARBELLA MUTUAL INSURANCE COMPANY.
• Court: Supreme Judicial Court of Massachusetts

831 N.E.2d 389

64 Mass. App. Ct. 901

COMMONWEALTH¹ v.ARBELLA MUTUAL INSURANCE COMPANY.

No. 04-P-1072.

Appeals Court of Massachusetts.

July 25, 2005.

Benjamin R. Zimmermann, Boston, for the plaintiff.

Steven A. Kruczynski for the defendant.

RESCRIPT.

Yellowbird Cab, Inc.(Yellowbird), the owner of the taxi that injured Dani Mace-Kairouz, had elected to satisfy its compulsory liability insurance obligations under G.L. c. 90, § 1A, by obtaining a surety bond issued by the defendantArbella Mutual Insurance Company(Arbella), with a limit equal to the $20,000 compulsory minimum prescribed by § 34A of that chapter.²Mace-Kairouz obtained a judgment against Yellowbird's driver in the amount (including interest) of $32,809.90 and, when the judgment remained unsatisfied thirty days after its entry, brought an action on the bond (in the name of the Commonwealth) against Arbella.SeeG.L. c. 90, § 34G.Mace-Kairouz moved for judgment on the pleadings or, in the alternative, summary judgment.In opposition, Arbella cited Yellowbird's payments to Mace-Kairouz of amounts less than the judgment amount but greater than $20,000, and argued that those payments operated to satisfy the obligation under the bond.A judge of the Superior Court denied the plaintiff's motion, and directed entry of judgment dismissing the complaint.

Section 34G of G.L. c. 90 states as follows:

"If a judgment rendered against the principal on a motor vehicle liability bond or against any person responsible for the operation of the principal's motor vehicle with his express or implied consent is not satisfied within thirty days after its rendition, the judgment creditor may for his use and benefit and at his sole expense bring an action in the name of the [C]ommonwealth against the surety company executing the bond."

Based on that language, the plaintiff argues that he is entitled to recover on the bond the unsatisfied portion of the judgment against Yellowbird's driver, up to the $20,000 limit of the bond.

However, the bond obligation is subject to the terms of the bond itself, which provides that the parties thereto "are bound and obligated to the Commonwealth of Massachusetts for the limits of liability as stated in the Massachusetts Automobile Insurance Policy (M.A.I.P.) for the Compulsory Insurance Coverages....The damages that will be paid in performing this agreement will never exceed the limits of liability required by [the Compulsory Insurance Coverages]."In furnishing...