Economy Fire and Cas. Co. v. Goar
Decision Date | 30 June 1989 |
Citation | 551 So.2d 957 |
Parties | ECONOMY FIRE AND CASUALTY COMPANY v. Charles GOAR. 87-1101. |
Court | Alabama Supreme Court |
Steven E. Haddock of Hardwick, Knight & Haddock, Decatur, for appellant.
Byrd R. Latham of Patton, Latham, Legge & Cole, Athens, for appellee.
As subrogee to the rights of its insureds, Loyd and Rosella Pugh, Economy Fire and Casualty Company appeals from a summary judgment in favor of Charles Goar on its third-party complaint against Goar for damages resulting from an accident involving a cattle trailer owned by Goar but loaned to the tort-feasor, Leroy Craft.
On July 9, 1985, Craft borrowed a cattle trailer from Goar in order to transport livestock to auction; the trailer attached to the rear of Craft's truck by a ball hitch and safety chain. Testimony as to whether the hitch was rusted and in poor condition at the time of the accident, and as to whether Goar had knowledge of the hitch's condition, is in conflict: Craft testified that Goar told him after the accident that he knew the hitch was "bad," but Goar denied making the statement to Craft and testified that he had no suspicion that the hitch was weakened or damaged. Mrs. Pugh was struck in her front yard by the trailer, which had broken free from Craft's truck as he drove past the Pugh home.
The Pughs sued Craft, alleging negligence, and sued Economy Fire, alleging bad faith, payment of medical benefits, and payment of uninsured motorist benefits. Economy Fire filed a cross-claim against Craft, and a third-party complaint (based on its right of subrogation through its policy with the Pughs) against Goar, alleging negligence, wantonness, and negligent entrustment of the trailer to Craft. Although jury verdicts were returned for the Pughs against Economy Fire and Craft, the only issue for our review is whether the trial court erred in granting Goar's motion for summary judgment prior to trial as to Economy Fire's third-party complaint.
Economy Fire's third-party complaint was filed July 22, 1987: therefore, pursuant to Code 1975, § 12-21-12, proof by substantial evidence is required in order to submit an issue of fact to the trier of the facts. § 12-21-12(d). Consequently, to establish Goar's liability, Economy Fire must present substantial evidence that Goar owed a duty to Mrs. Pugh; that he breached the duty of care owed to her; that a causal relationship existed between Goar's conduct and Mrs. Pugh's injuries; and that Mrs. Pugh was injured. Failure to present substantial evidence on any one element renders Economy Fire's third-party complaint insufficient to be presented to the jury.
At the outset, we note that a bailment existed between Goar (the bailor) and Craft (the bailee) and that it existed for the sole benefit of Craft. Therefore, Goar's duty of care was limited to warn of those defects in the trailer of which he had actual knowledge and which were not apparent to Craft:
8 C.J.S. Bailments § 44, at 275-76 (1988). See, also, Penton v. Favors, 262 Ala. 262, 267, 78 So.2d 278 (1955):
(Emphasis added.)
The only evidence offered by Economy Fire to prove that Goar breached the duty of care owed to Mrs. Pugh in loaning Craft the trailer was Craft's statement in his deposition that, after the accident, "I told Charlie [Goar] about it, and Charlie said he knew the hitch was bad but he...
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