Hustead on Behalf of Adkins v. Ashland Oil, Inc.

Decision Date17 June 1996
Docket NumberNo. 23169,23169
Citation475 S.E.2d 55,197 W.Va. 55
CourtWest Virginia Supreme Court
PartiesF. Jane HUSTEAD, Guardian Ad Litem on Behalf of the Minor Children, To-Wit: Brett M. ADKINS, Daniel E. Adkins, Jacob R. Adkins, Joshua D. Adkins, Kenneth Odell Adkins, Michael T. Arnett, Emily R. Arthur, Marshall B. Arthur, Jamie D. Banks, Timothy Billups, Daniel B. Blevins, Jr., Matthew A. Blevins, Adam C. Booth, Joshua L. Booth, Ryan T. Booth, Roxanne M. Burdette, Jennifer Byard, Miranda Byard, Ashley Caldwell, Crystal Caldwell, Monica Clark, William C. Duty, Barbara Earls, Frances M. Elliott, Michael S. Ferguson, Richelle L. Ferguson, Felecia Frasher, Kayla Frasher, Timothy Frasher, Brady Gilkerson, Jamie Gilkerson, Michael Gilkerson, Shawn Gilkerson, Angela Hall, Bobby Alan Hall, Jason Hall, Pamela Holley, John C. Howerton, Jr., Amber Johnson, Courtney Johnson, Mathina Kinstler, Andrew Ryan Leist, Jonathan D. Lester, Jonathan R. Little, Kris Ray Maynard, Barbara Ann Mills, Marisa D. Milum, Piper Cody Moore, Sid R. Mosser, II, Jerry D. Napier, Melissa L. Napier, Ashlea Perry, Nichole Perry, Jessica Pinnick, Justin A. Prince, Angela Pulley, Carol Pulley, Jamie Michelle Pulley, Robert Pulley, Kristen Ramey, James E. Ray, Jr., Amanda Romans, Elizabeth Russell, Keisha Ryle, Belvey Joe Shepherd, Jr., Brett E. Shepherd, Brittany Shepherd, Glenda Shepherd, Brian K. Short, Rebecca Sue Smith, Christopher Thacker, Carl E. Ward, Carla Ward, Elden Paul White, III, Jeffrey White, Brittney Zenos, Kemon Zenos, And Greta Fay Ball, Charles Ray Ball, Jr., Chadwick Brent Bellomy, Lola Michelle Bowens, Allen Breedlove, Susan Breedlove, James Bryant, Jr., Kayla Burton, Thaddeus Marshall Caldwell, Ashley Nicole Collins, Mary E. Collins, Sammy Cooper, Jr., Linda Sue Copley, Lucy Copley, Dustin E. Duvall, Alicia Bowman Ellis, Stephanie Michelle Ellis, Harry Endicott, Selena Endicott, Marisa Sue Evans, Sarah Frances Hamm, Angela Marie Hundley, Maldie May Hundley, Samuel Herbert Hundley, Virgie Leona Hundley, Little Ruth Elizabeth Lemaster, Derek Ray Meddings, Shai Anna Music, Robert Pelf

2. One of the purposes of West Virginia Rule of Civil Procedure 60(b) is to provide a mechanism for instituting a collateral attack on a final judgment in a civil action when certain enumerated extraordinary circumstances are present. When such extraordinary circumstances are absent, a collateral attack is an inappropriate means for attempting to defeat a final judgment in a civil action.

3. A declaratory judgment action can not be used as a substitute for a direct appeal.

4. In deciding whether a justiciable controversy exists sufficient to confer jurisdiction for purposes of the Uniform Declaratory Judgment Act, West Virginia Code §§ 55-13-1 to -16 (1994), a circuit court should consider the following four factors in ascertaining whether a declaratory judgment action should be heard: (1) whether the claim involves uncertain and contingent events that may not occur at all; (2) whether the claim is dependent upon the facts; (3) whether there is adverseness among the parties; and (4) whether the sought after declaration would be of practical assistance in setting the underlying controversy to rest.

5. "This Court may, on appeal, affirm the judgment of the lower court when it appears that such judgment is correct on any legal ground disclosed by the record, regardless of the ground, reason or theory assigned by the lower court as the basis for its judgment." Syl. Pt. 3, Barnett v. Wolfolk, 149 W.Va. 246, 140 S.E.2d 466 (1965).

F. Jane Hustead, Huntington, for Appellants.

Marc E. Williams, Robert L. Massie, Lisa A. Green, Huddleston, Bolen, Beatty, Porter & Copen, Huntington, for Appellee.

WORKMAN, Justice:

This case is before the Court upon the appeal of F. Jane Hustead, the guardian ad litem of 118 infant Plaintiffs in the Ashland Oil, Inc. (sometimes referred to as "Ashland")") suit, 1 from the May 11, 1995, final order of the Circuit Court of Cabell County dismissing with prejudice of a declaratory judgment action. The Appellant argues that the circuit court erred: 1) in holding that the waivers of the infants' future right to a jury trial and the right to sue for punitive damages in any future unaccrued cause of action against the Appellee for emissions associated with the operation of the refinery were legally valid and that the legal guardians had the right to enter into such waivers on behalf of their infant child(ren), as said ruling was in contravention of this state's public policy; and, 2) in accepting the Appellee's argument that the court must consider the validity of the waivers in the context that they were signed and consented to by adults. The Appellant also posits a question regarding the scope of a guardian ad litem's duties when representing a minor child in a civil action. Based on our review of the record, the parties' arguments and all other matters submitted before the Court, we find that the Appellant, having failed to appeal the final judgment of the circuit court, has launched a collateral attack on a final judgment in a civil action through the institution of a declaratory judgment action. We conclude that such a collateral attack is prohibited and, therefore, we affirm the lower court's decision upholding the settlement. 2

I.

This appeal arises from allegations that the Appellee's plant in Catlettsburg, Kentucky, violated air pollution regulations in 1989 with the alleged emissions of toxins which purportedly drifted in the air and injured residents of Wayne County, West Virginia. Numerous lawsuits were instituted against the Appellee involving approximately 2200 plaintiffs. During the course of the litigation, approximately 700 plaintiffs accepted a settlement and the rest were dismissed either involuntarily or voluntarily.

The basic terms of the settlement provided for the creation and implementation of a program of diagnostic and treatment services on the plaintiffs' behalf. The children's legal guardians were given the option of receiving a medical cost reimbursement over the next ten years that allowed the minor children to be reimbursed for certain medical expenses up to a preset figure per year, or alternatively, the minor children over the age of eight had the option of receiving the cash equivalent of the medical plan for the purpose of purchasing their own medical reimbursement coverage. If the legal guardian chose to provide this coverage for the child, then said money would be invested in an interest bearing trust account for the child until the child attained the age of eighteen.

As part of said settlement, the legal guardians for the minor children were required to sign a document entitled "Release and Covenant Not to Sue" and a separate "Arbitration Agreement" that waived certain future legal rights of the minor children. The pertinent provisions provided:

VII. FUTURE CLAIMS: Claimant relinquishes his or her right to a trial by jury for any and all Claims that Claimant may acquire or could assert in the future against any of the Released Parties for any claims arising from emissions associated with the operation of the Refinery. However, Claimant reserves the right to initiate arbitration or a bench trial with respect to such future Claims....

....

... Claimant specifically releases and covenants not to sue the Released Parties for any and all punitive damages....

....

IX. SEVERABILITY: If a Court of competent jurisdiction should determine that any provision of this Release and Covenant Not to Sue is invalid or unenforceable,such determination shall not affect the validity or enforceability of the other provisions of this Release and Covenant Not to Sue, which provisions are severable.

Not only were the minor plaintiffs who ultimately entered into settlements with the Appellee represented by their legal guardians in the settlement negotiations, they were also represented by five separate law firms that included lawyers with nationwide reputations in toxic tort litigation. Further, once the guardian ad litem was appointed, she also engaged in settlement negotiations on the children's behalf prior to reaching a compromise on terms to which she originally objected. Finally, prior to the execution of the settlement documents, the minor children's legal guardians each reviewed the release, complete with the now disputed terms, and consulted with their personal lawyers, as well as the guardian ad litem, regarding the terms of the settlement and the release agreement. Subsequently, the legal guardians voluntarily executed the release of behalf of their minor children. 3

Prior to the lower court's approval of the settlement, the guardian ad litem objected to the above-mentioned releases of future legal rights for the minor children indicating her belief that the releases were void as against public policy and, therefore, unenforceable. Specifically, the guardian ad litem stated that she was "unable to say that this settlement is unequivocally not in the best interests of the infant children. However, unfortunately, the Guardian Ad Litem is unable to recommend this settlement as being in the best interest of the infant children." After considering the guardian ad litem's objection, the court approved the settlements of these...

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