Smith v. Safeco Ins. Co., 88-4312
| Decision Date | 20 January 1989 |
| Docket Number | No. 88-4312,88-4312 |
| Citation | 863 F.2d 403 |
| Parties | Tony J. SMITH, Plaintiff-Appellant, v. SAFECO INSURANCE COMPANY, Defendant-Appellee. |
| Court | U.S. Court of Appeals — Fifth Circuit |
David Slaughter, Paul Snow, Jackson, Miss., for plaintiff-appellant.
James D. Holland, Claire G. Mavar, Jackson, Miss., for defendant-appellee.
Appeal from the United States District Court for the Southern District of Mississippi.
Before CLARK, Chief Judge, TIMBERS * and RUBIN, Circuit Judges.
Tony J. Smith sued his automobile insurance carrier, Safeco Insurance Company of America, seeking underinsured motorist benefits. The district court entered judgment dismissing the action with prejudice on the grounds that the suit was barred by the doctrine of res judicata and that Smith had waived his rights under the insurance policy by releasing the alleged tortfeasor without Safeco's consent or knowledge. We affirm.
Tony Smith was severely injured in an automobile accident involving Jerry Young. After the accident, Smith released Young and his insurance carrier of all liability for the accident in exchange for $12,500, the full extent of Young's insurance coverage. Later, Smith sued Young for his injuries arising out of the accident. The suit was dismissed with prejudice based upon the former release.
Smith then filed a claim for his medical expenses with his automobile insurance carrier, Safeco. Safeco denied the claim, arguing that Smith's release of Young and Young's insurance carrier violated the terms of his insurance policy and destroyed Safeco's subrogation rights. Smith sued Safeco for contractual and punitive damages allegedly arising out of Safeco's denial of coverage. After trial, the district judge directed a verdict on the punitive damages claim in favor of Safeco. The remaining claims were settled between the parties for $5,000. The district court entered a judgment that recited that it was
ORDERED AND ADJUDGED that the plaintiff, Tony J. Smith, recover nothing of the Defendant, Safeco Insurance Company of America, on the issue of punitive damages and, in that the Plaintiff and Defendant announced before the Court settlement and compromise of all remaining issues, including compensatory damages; it is further
ORDERED AND ADJUDGED that all remaining issues in question be dismissed with prejudice in this cause.
After judgment was entered, Smith sought underinsured motorist benefits under the same insurance policy and arising out of the same accident. Safeco denied the claim, and the instant suit resulted. The cause was tried upon stipulated facts, and the United States District Court for the Southern District of Mississippi, Jackson Division, entered judgment that Smith take nothing. The district court relied upon both Smith's release of Young and the prior judgment in...
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