General Reinsurance Corp. v. Missouri General Ins. Co.
| Decision Date | 17 April 1979 |
| Docket Number | No. 78-1269,78-1269 |
| Citation | 596 F.2d 330 |
| Parties | GENERAL REINSURANCE CORPORATION, Appellee, v. MISSOURI GENERAL INSURANCE COMPANY, Appellee, Jerry B. Buxton, Director, Division of Insurance and Receiver for Missouri General Insurance Company, Appellee, James A. Polsinelli, Commissioner of Claims for Missouri General Insurance Company, Mississippi Insurance Guaranty Association, Appellant. Wholesale Materials Company, Inc., Charles F. Jones and Hattie K. Keeton. Reinsurance Association of America, Amicus Curiae. |
| Court | U.S. Court of Appeals — Eighth Circuit |
Robert M. Sommers (on brief), of James, Odegard & Millert, Kansas City, Mo., argued, for appellant; Neal E. Millert, Kansas City, Mo., and P. N. Harkins, III, of Watkins & Eager, Jackson, Miss., on brief.
John C. Craft (argued), and William C. Jolley, Jr., Kansas City, Mo., on brief, for appellee.
Charles W. Havens, III, Washington, D. C. (argued), and Franklin W. Nutter, Alexandria, Va., on brief, for amicus curiae, Reinsurance Assn. of America.
Before LAY and BRIGHT, Circuit Judges, and HARPER, Senior District Judge. *
This is an appeal from a final judgment by the trial court ordering that certain proceeds of reinsurance be paid to defendant Receiver for insolvent Missouri General Insurance Company, appellee herein.
For the purpose of providing some background, the basic facts of the case are as follows: On January 1, 1971, Agreement of Reinsurance No. 4191 was entered into between General Reinsurance Corporation and Medallion Insurance Company and its subsidiaries, including Missouri General Insurance Company (hereinafter referred to as Missouri General). In 1971, Missouri General issued a comprehensive general liability insurance policy insuring Wholesale Materials Company, Inc. In 1972, Wholesale Materials Company, Inc., was named the defendant in a lawsuit for personal injuries filed in the Circuit Court of Forrest County, Mississippi. Pursuant to the terms of its policy issued to Wholesale Materials Company, Inc., Missouri General undertook the defense of the suit.
Thereafter, during the course of the lawsuit, Missouri General became insolvent and a Receiver was appointed. Pursuant to Mississippi law, Mississippi Insurance Guaranty Association (hereinafter referred to as Guaranty Association), upon notice of the appointment of a Receiver for Missouri General, undertook the defense of the Mississippi suit. Subsequently, the Guaranty Association settled the lawsuit for $150,000.00, and paid the sum of $150,000.00 out of its fund. As a result of the Receiver and the Guaranty Association both stating a claim to the reinsurance proceeds under the Agreement of Reinsurance No. 4191, General Reinsurance Corporation instituted this interpleader action, pursuant to Title 28, 1335 U.S.C. The case was submitted to the court below, without a jury, on the pleadings, stipulated facts and trial briefs.
In holding that the Receiver of Missouri General was entitled to the reinsurance proceeds, the Court pointed to the plain language of the Reinsurance Agreement as mandating such a result. In the trial court's view, the interpretation of the Reinsurance Agreement entitling the Receiver to the reinsurance proceeds was consistent with both the State of Missouri's statutory scheme for winding up insurance companies and the weight of authority in other jurisdictions. Upon careful consideration of the records, the briefs...
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