Pa. Nat'l Mut. Cas. Ins. Co. v. Corley
| Decision Date | 04 August 2004 |
| Docket Number | 2004-UP-438 |
| Parties | Pennsylvania National Mutual Casualty Insurance Company, Appellant, v. Larry Corley, Anna Corley, Robbie Pearson and Audrey Pearson, d/b/a Pearson's Funeral Home, Warren Robinson and State Farm Mutual Automobile Insurance Company, Respondents. |
| Court | South Carolina Court of Appeals |
THIS OPINION HAS NO PRECEDENTIAL VALUE. IT SHOULD NOT BE CITED OR RELIED ON AS PRECEDENT IN ANY PROCEEDING EXCEPT AS PROVIDED BY RULE 239(d)(2), SCACR.
Heard June 8, 2004
Appeal From Richland County G. Thomas Cooper, Jr., Circuit Court Judge
F Barron Grier, III, and Joseph Henry, both of Columbia, for Appellant.
E Dale Lang, Jr., James B. Lybrand, Jr., Paul T. Collins, and Larry Cornell Smith, all of Columbia, for Respondents.
Pennsylvania National Mutual Casualty Insurance Company sought a declaratory judgment that policy exclusions absolved it of the duty to provide a defense for or indemnify Pearson's Funeral Home for injuries sustained by Pearson's employee. The circuit court held policy exclusions did not apply. We dismiss Pennsylvania National's appeal as moot.
Larry Corley was injured in a collision involving a hearse and another limousine while chauffeuring for Pearson's. Pearson's insured all three vehicles under a commercial automobile insurance policy issued by Pennsylvania National.
Corley and his wife brought an action against Pearson's and Warren Robinson, the other limousine driver, alleging negligence and loss of consortium. Pennsylvania National denied liability coverage. Before Pennsylvania National's denial of benefits could be adjudicated, the Corleys' suit was removed from the active roster. The Corleys later refiled their suit specifically seeking recovery under the uninsured motorist provisions of Pearson's policy.
Before the Corleys' suit was restored to the active roster Pennsylvania National brought a declaratory judgment action arguing policy exclusions disallowed both liability and uninsured motorist coverage and, consequently, it had no duty to defend or indemnify the funeral home in the Corleys' underlying tort suit. Pennsylvania National added State Farm the Corleys' automobile insurer, as a defendant in an amended complaint, but requested no specific relief from the insurer. Following a hearing, the circuit court determined policy exclusions were inapplicable. Pennsylvania National appealed.
While the appeal was pending, Pennsylvania National entered into a written agreement and release with the Corleys settling their tort claim for $50, 000. The agreement released all parties from liability for injuries arising from the automobile accident, and Pennsylvania National purported to reserve the right to seek recovery against State Farm for the sum paid to the Corleys.
A declaratory judgment action to determine insurance coverage is an action at law. Pennell v. Foster, 338 S.C. 9 14, 524 S.E.2d 630, 633 (Ct. App. 1999). In an action at law, the appellate court may only correct errors of law and will uphold the circuit court's factual findings if any evidence supports them. Townes Assocs., Ltd. v. City of Greenville, 266 S.C. 81, 86, 221 S.E.2d 773, 775 (1976).
Pennsylvania National contends the trial court erred in determining the exclusions of liability and uninsured motorist coverage did not apply to the Corleys' claims. We dismiss Pennsylvania National's appeal as moot.
Pennsylvania National claims it reserved its claims denying coverage and retained a subrogation right against State Farm by including the following clause in the agreement it entered into with the Corleys:
Further, the undersigned in settling this action acknowledge that the named plaintiff Larry Corley will no longer have an interest in the declaratory judgment action currently on appeal but that Pennsylvania National Mutual Casualty Insurance Company will maintain its rights to assert that it is not the provider of...
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