Jackson v. Travelers Ins. Co. of Hartford, Conn.

• Decision Date: 13 November 1975
• Docket Number: 74-284.,Civ. A. No. 74-283
• Citation: 403 F. Supp. 986
• Parties: P. V. JACKSON, III, Plaintiff, v. TRAVELERS INSURANCE COMPANY OF HARTFORD, CONNECTICUT, Defendant. Linda Sue EDWARDS, Plaintiff, v. TRAVELERS INSURANCE COMPANY OF HARTFORD, CONNECTICUT, Defendant.
• Court: U.S. District Court — Middle District of Tennessee

403 F. Supp. 986

P. V. JACKSON, III, Plaintiff, v. TRAVELERS INSURANCE COMPANY OF HARTFORD, CONNECTICUT, Defendant.

Linda Sue EDWARDS, Plaintiff, v. TRAVELERS INSURANCE COMPANY OF HARTFORD, CONNECTICUT, Defendant.

Civ. A. Nos. 74-283, 74-284.

United States District Court, M. D. Tennessee, Nashville Division.

November 13, 1975.

COPYRIGHT MATERIAL OMITTED

Joseph L. Lackey, Jr., Nashville, Tenn., P. V. Jackson, III, in pro per, for plaintiffs.

Douglas Fisher, Nashville, Tenn., for defendant.

DANIEL HOLCOMBE THOMAS, District Judge.

The above-styled actions were heard by the Court without a jury and taken under submission on the 18th day of September 1975. After hearing the evidence, examining the exhibits, the pleadings, the stipulations, briefs and arguments of counsel, the Court makes the following Findings of Fact and Conclusions of Law:

FINDINGS OF FACT

1. By stipulation these actions were consolidated for trial. The plaintiff, P. V. Jackson, III, as well as the plaintiff, Linda Sue Edwards, are resident citizens of the State of Tennessee. The defendant is a corporation organized under the laws of the State of Connecticut.

The plaintiff, P. V. Jackson, III (Jackson) is an attorney licensed to practice in the State of Tennessee. He alleges in his complaint that he was employed by the plaintiff Edwards to represent her for injuries she received in an automobile accident and that the defendant, Travelers Insurance Company of Hartford, Connecticut (Travelers) induced the breach of this contract, thereby causing damage to Jackson. The plaintiff, Linda Edwards, asserts that the defendant, through its agents, are guilty of fraud, misrepresentation and deceit in the procuring of a settlement entered into by her and Travelers. The settlement in question arises out of an automobile accident wherein the plaintiff was a guest passenger in a vehicle whose insurance carrier was Travelers. In defense, Travelers assert that they did not commit fraud, misrepresentation or deceit regarding their settlement agreement with Mrs. Edwards. In answer to the allegations raised by Jackson, the defendant denies that Jackson had a contract to represent the plaintiff. Moreover, the defendant alleges that if such an agreement existed between Jackson and Mrs. Edwards that Travelers in no way induced the breach of such an agreement and also that such a contract is void as against public policy.

2. The plaintiff, Linda Edwards, was seriously injured on January 15, 1972, while riding as a guest passenger in an automobile driven by William Gary Cooper (Cooper) and owned by Richard D. Rutherford when the vehicle being driven by Cooper ran off Nolensville Road in Nashville and collided with an electric utility pole. Prior to the accident which occurred at approximately 1:50 A.M., the plaintiff had been on a date with Cooper, a married man.¹ Earlier that evening Cooper and the plaintiff left her apartment and proceeded to the King of the Road Motel in Nashville to await the arrival of Cooper's parents who were expected to meet them in the cocktail lounge. It is undisputed that both the plaintiff and Cooper consumed alcoholic beverages throughout the evening.

3. Shortly after the arrival of Cooper's parents, the party of four frequented another establishment on Dickerson Road in Nashville where they could dance and drink beer. Plaintiff testified that she and Cooper danced most of the evening and that Cooper drank "off and on" until they departed around midnight. After leaving the lounge, Cooper, his parents and the plaintiff returned to the King of the Road where Cooper had left his car. After driving his parents to the parking lot, Cooper and the plaintiff entered his vehicle and started toward the plaintiff's apartment. Immediately after leaving the parking lot, Mrs. Edwards testified that she fell asleep. As the vehicle was traveling south on Nolensville Road, a police car on routine patrol heppened to be directly behind their vehicle. According to the testimony of officers Champion and Minton of the Metropolitan Police Department, they were following about twenty-five feet behind the vehicle when they were notified by radio to proceed to the scene of another accident. As they attempted to pass Cooper's vehicle, the automobile veered to the left side of the road and then swerved at a very sharp angle to the right, striking a utility pole. Upon impact the plaintiff sustained serious head injuries. The driver received minor injuries and was later released from the Nashville General Hospital.

4. Subsequently, Cooper was taken to the Metropolitan Police Department where he was given an Alco-Analyzer test to determine the alcoholic content of his blood. In Tennessee there is a statutory presumption that the driver of a vehicle who registers as much as .10 per cent on such a test is considered to be under the influence of an intoxicant. The test conducted on Cooper registered .19 per cent of alcohol. The father of the driver, Charles Cooper, testified that his son did not exhibit any sign of intoxication at the time his son drove his automobile to the parking lot. The plaintiff testified that although Cooper had been drinking throughout the evening, it did not appear to her that Cooper was intoxicated. Notwithstanding this, the Court finds the test result to be accurate.

5. As stated previously, the vehicle involved in the accident, a 1962 Dodge, was owned by Cooper's employer, Richard D. Rutherford. It is further stipulated that on the date of the accident there was in full force and effect a liability insurance policy written by Travelers in the amount of $50,000.00 covering the vehicle. Rutherford testified that on the night of the accident, Cooper was not using the automobile on any business of his employer. However, Rutherford further testified that Cooper was permitted to use the vehicle for business and pleasure and that Rutherford had placed no restrictions on Cooper pertaining to the operation of the automobile. Based on the evidence presented at trial, the Court finds that at the time of the accident Cooper had the permission and consent of his employer to use the automobile.

6. Immediately after the accident, the plaintiff was taken to Nashville General Hospital where she underwent extensive medical treatment. Due to the seriousness of her injuries she remained in the hospital from January 15, 1972, until March 8, 1972. The neurologist, Doctor Ray W. Hester, who treated the plaintiff, testified that Mrs. Edwards received brain stem damage as a result of the accident and is paralyzed in her left arm and left leg, and that she is 100% permanently disabled. In addition, the plaintiff received damage to her eyes and corrective surgery was later performed. Doctor Wallace H. Faulk, an ophthalmologist, who has operated twice on Mrs. Edwards testified that her eyes will be permanently inverted. The plaintiff now walks with the use of a walking cane and her speech is impaired. At the time of the accident Mrs. Edwards was twenty-four years of age and was gainfully employed as a secretary with the Murray Ohio Company. Because of her accident the plaintiff cannot resume her employment. The Court finds that Mrs. Edwards is permanently and totally disabled.

7. In the ensuing months several events and transactions occurred between Mrs. Edwards, Jackson and Travelers. Since the heart of this litigation centers primarily on these transactions and dealings and since these factual issues are of critical importance as to the determination of this lawsuit, a sequel of factual events is deemed necessary.

8. THE INSURANCE ADJUSTOR: Upon notification of the accident involving one of their insured vehicles, the Nashville Office of Travelers assigned one of its claim representatives to the case. Mr. Ray Davidson, a claim representative (adjustor) for Travelers received a report on January 17, 1972, to the effect that there had been an accident and the driver was to call and give a signed statement. He also noted in his file that the Plaintiff Edwards was in very bad condition and that both driver and plaintiff were separated and waiting on divorce. (Pl. Ex. 2)² On January 19, 1972, Davidson noted that he had been in contact with the plaintiff's mother, Mrs. Margaret Sanderson, who had agreed to select the "advance pay system" for her daughter.³ Davidson testified that it was the intent of Travelers in adopting this plan to discourage litigation and to keep potential claimants from obtaining attorneys to represent them in conjunction with their claims. On February 17, 1972, Davidson visited the plaintiff in the hospital but due to her condition was unable to communicate with her.

9. THE ATTORNEY: Somewhere between March 1 through March 6, Jackson testified that he visited the plaintiff in the hospital. According to Jackson, he had been recommended by Faye Smithson a friend of Mrs. Edwards. It was during this visit that the plaintiffs have asserted that Mrs. Edwards agreed to employ Jackson as her attorney. The plaintiffs admit that there was no written contract at any time pertaining to Jackson's representation of Edwards. The plaintiffs further admit that the exact details of employment as to fees were not discussed; however, Mrs. Edwards testified that she was aware that "the fee would be one-third." This testimony was also corroborated by Jackson. In addition, Fay Smithson, who was present during the plaintiffs' conversation, testified that Jackson's fee arrangement would be one-quarter attorney's fee if the matter was settled out of court and one-third of the amount received in the event the case went to trial. At the conclusion of their discussion Jackson testified that Mrs. Edwards signed the following authorization: (Pl. Ex. 3)⁴

"TO WHOM IT MAY CONCERN:

I hereby authorize you to release to my attorney, P. V. Jackson, III, any and all medical information he may request concerning your treatment of injuries received by Linda Edwards on ...