Lexington Ins. Co. v. Buckley
| Decision Date | 06 September 2005 |
| Docket Number | No. 2003-CA-01249-COA.,No. 2003-CA-02183-COA.,2003-CA-01249-COA.,2003-CA-02183-COA. |
| Parties | LEXINGTON INSURANCE COMPANY, Appellant v. Charles BUCKLEY, Appellee. Lexington Insurance Company, Appellant v. Charles Buckley, Appellee. |
| Court | Mississippi Court of Appeals |
Lawrence Cary Gunn, Hattiesburg, Louis B. Lanoux, Jackson, attorneys for appellant.
Samuel Steven McHard, David Shoemake, attorneys for appellee.
Before BRIDGES, P.J., GRIFFIS and BARNES, JJ.
BRIDGES, P.J., for the Court.
I.
BACKGROUND
¶ 1. Charles Buckley witnessed a tragic accident and filed emotional distress and negligence claims against Allied Products. Because Allied had purchased a liability insurance policy from Lexington Insurance Company, Buckley and Lexington attempted to negotiate a settlement. Lexington offered to pay Buckley $140,000 to settle the claim, and Buckley accepted the offer with the added provision that Lexington pay the settlement funds within ten days of their agreement. When Lexington did not tender settlement funds, Buckley filed a complaint for specific performance in the Covington County Chancery Court. Lexington did not respond to the suit and Buckley obtained a judgment against Lexington.
¶ 2. When Lexington discovered the judgment, Lexington filed a motion to extend time for an appeal. The chancellor granted Lexington's motion and Lexington's appeal of the judgment comprises one of the present consolidated appeals.
¶ 3. After Lexington filed its successful motion for extension of time, Lexington filed a motion to set aside the judgment. Buckley also filed a motion to reconsider granting Lexington's motion for extension of time. The chancellor addressed both motions in one hearing and denied both. Lexington also appeals the chancellor's denial of its motion to set aside the judgment. That appeal is the second of the present consolidated appeals.
¶ 4. Aggrieved by the two decisions mentioned above, Lexington argues: (1) that the chancery court lacked personal jurisdiction over Lexington due to insufficient service of process, (2) that the chancery court erred when it set the matter for trial, (3) that the chancery court erred when it awarded a judgment, (4) that the chancery court erred when it denied Lexington's motion to set aside the judgment, and (5) that the chancery court erred when it awarded a judgment based on improper amended complaints. Aggrieved by the chancellor's decision to deny his motion to reconsider granting Lexington's motion for extension of time, Buckley cross-appeals and asks this Court to review that decision.
¶ 5. Finding that the chancery court lacked personal jurisdiction over Lexington because of improper service of process, and that the chancery court erred by conducting a trial on the merits where Lexington failed to answer Buckley's complaint or otherwise appear, we reverse the chancellor's decision to award a judgment in Buckley's favor. Because the chancery court lacked jurisdiction, Lexington's other issues become moot. Likewise, Buckley's cross-appeal becomes moot.
II.
FACTS AND PROCEDURAL HISTORY
¶ 6. This complicated case involves a terrible accident, a lawsuit by a witness to that accident, a failed settlement, litigation over that failed settlement, and an end result of two awards to the original plaintiff. The plaintiff's first award came by way of a settlement related to the original claim. The plaintiff's second award stems from a judgment connected to the litigation over the failed settlement.
¶ 7. Charles Buckley is the plaintiff in both of the underlying actions and the appellee and cross-appellant in the matter at hand. During August of 1998, Charles Buckley "bush hogged" the medians near the intersection of I-55 and Lakeland Drive in Jackson, Mississippi. As Buckley mowed, the mower blade, manufactured by Allied Products, broke and shot out from under the mower.
¶ 8. Tragically, Camilla Dawn Haynes, traveling with her children and her mother, died when the mower blade went through the windshield of her van and virtually decapitated her. Camilla's mother and children survived. Buckley only realized the cause and severity of the situation when he approached Camilla's van and saw the results of the broken mower blade for the first time.
A.
Claim One
¶ 9. In November of 2000, Buckley filed a complaint in the Covington County Circuit Court. By way of his complaint, Buckley asserted claims against Allied Products. Buckley claimed that he suffered emotional trauma from having witnessed the event mentioned above. Allied's insurer, Lexington Insurance Company, retained counsel and had Buckley's claim removed to federal district court. Meanwhile, Allied filed Chapter 11 bankruptcy proceedings. On December 4, 2001, Buckley had the bankruptcy stay lifted and proceeded with his claim against Allied.
¶ 10. In October of 2002, Buckley and Lexington, on Allied's behalf, attended a conference aimed at developing the prospects of settling Buckley's claim. Accordingly, the parties reached a tentative settlement agreement. Lexington offered to pay Buckley $140,000, provided Allied and the creditor committee in the bankruptcy proceeding withdrew their pending claims against Allied's policy and any proceeds from that policy.
¶ 11. Buckley's attorney responded with a letter and accepted the terms, but Buckley added the condition that Lexington must tender the $140,000 within ten days of the date of the mailing of Buckley's response letter. While Buckley claims that his response to Lexington's offer constituted a valid acceptance, Lexington disputes that claim and argues that Buckley, by adding the condition of payment within ten days, actually tendered a counteroffer. However, this dispute is immaterial to the present issues, which will become clearer as this opinion proceeds. At any rate, Buckley did not receive payment within ten days. Lexington claims the delay occurred as a result of Allied's bankruptcy proceedings. That is, Lexington could not acquire the funds until it could be sure that, in so doing, it had clearance from Allied and the bankruptcy creditor committee. Rather than moving forward with his claim, Buckley attempted to enforce the settlement.
B.
Buckley Attempts to Enforce the Settlement of Claim One
¶ 12. Buckley sought two avenues to enforce the settlement. First, Buckley went to the federal district court and filed his motion to enforce the settlement. The federal district court granted Buckley's motion to enforce and ordered Lexington to pay Buckley $140,000 within seven days of the filing of that order. Lexington appealed the order enforcing the settlement, but the record is silent as to the results of that appeal. Buckley's second attempt at enforcing the settlement would eventually give rise to this appeal.
C.
Claim Two
¶ 13. On December 31, 2002, Buckley filed a complaint in the Covington County Chancery Court. In his complaint, titled "Complaint for Specific Performance and Other Relief," Buckley asserted claims for (1) tortious interference with a settlement agreement, (2) intentional infliction of emotional distress, (3) breach of contract, and (4) specific performance of the settlement agreement. As for damages, Buckley requested "specific performance of the [s]ettlement [a]greement, plus interest since November 1, 2002, attorneys fees, costs, interest, and all compensatory and punitive damages allowed by law." Buckley also requested "all other relief, either general or specific, as he may be entitled to."
¶ 14. On February 14, 2003, Buckley filed his first amended complaint. Buckley amended the requested damages portion of his original complaint. Though the requested damages in his original request were open and non-specific, Buckley's amended request sought relief "not to exceed $74,500."
¶ 15. On February 26, 2003, Lexington paid Buckley the $140,000 contemplated in their settlement agreement. Consequently, Lexington paid Buckley the amount of money that Buckley sought in his specific performance action. Regardless, Buckley's specific performance action proceeded in the chancery court.
¶ 16. On April 7, 2003, Buckley attended a hearing before the Covington County Chancery Court. No one was present for Lexington or Allied, and Lexington had not answered Buckley's complaint or entered an appearance. Still, Buckley and the chancery court set a trial date for April 10, 2003.
¶ 17. On April 8, 2003, Buckley filed his second amended complaint. Again, Buckley amended his damages request. While his first amended complaint modified his damages request to $74,500, Buckley's second amended complaint was non-specific as to the requested damages. Like his original complaint, Buckley's second amended complaint modified his damages to a request for "interest on $140,000 from November 1, 2002, to February 28, 2003, attorneys' fees, costs, interest, and all compensatory and punitive damages allowed by law." Buckley also modified his request to include "all other relief, either general or special, as he may be entitled to."
¶ 18. On April 10, 2003, Buckley showed up for trial, but no one was present for Lexington. Likewise, Lexington had not responded to any of Buckley's three complaints, or entered an appearance. The chancellor had Buckley put forth evidence from two witnesses, as well as eleven exhibits. After the trial, the chancellor entered the following judgment:
THIS CAUSE having come on for hearing on its merits and the Court after taking evidence, having heard testimony of two witnesses and reviewing eleven exhibits identified and admitted.
FINDS:
1. Lexington Insurance Company failed to answer or plead and is defaulted.
2. Charles Buckley suffered severe emotional distress and mental injury as a result of the unreasonable and vexatious conduct of Lexington Insurance Company.
WHEREFORE IT IS ORDERED THAT the Plaintiff, Charles Buckley is hereby awarded the sum of $75,000.00...
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