Wilson v. Educators Mut. Ins. Ass'n, 20150150-CA
| Citation | 436 P.3d 144 |
| Decision Date | 16 August 2018 |
| Docket Number | No. 20150150-CA,20150150-CA |
| Parties | Everett P. WILSON Jr. and Darla Wilson, Appellants, v. EDUCATORS MUTUAL INSURANCE ASSOCIATION, Appellee. |
| Court | Utah Court of Appeals |
Jack C. Helgesen and Craig Helgesen, Layton, Attorneys for Appellants
Randall R. Smart and Jeffrey A. Callister, Murray, Attorneys for Appellee
Opinion
¶1 This case is before us on remand from the Utah Supreme Court. See generally Wilson v. Educators Mutual Insurance Ass’n (Wilson II ), 2017 UT 69, 416 P.3d 355, rev’g Wilson v. Educators Mutual Insurance Ass’n (Wilson I ), 2016 UT App 38, 368 P.3d 471. In Wilson II , our supreme court reversed this court’s determination in Wilson I that Educators Mutual Insurance Association (EMIA) lacked standing to pursue a subrogation action against the tortfeasor in its own name, concluding that EMIA had standing to sue for subrogation in its own name under the terms of the insurance policy in question. Id. ¶ 22. On remand, we are instructed to address the parties’ remaining contentions. Id. ¶¶ 22–23.
¶2 Appellants Everett P. Wilson Jr. and Darla Wilson contend that EMIA’s claim was barred by Utah Code section 78B-3-107 and that the district court erred in its allocation of interpleaded funds. Regarding their first contention, the Wilsons have failed to provide any meaningful analysis and have therefore failed to meet their burden of persuasion on appeal. See Bank of Am. v. Adamson , 2017 UT 2, ¶¶ 12–13, 391 P.3d 196. As to the Wilsons’ second contention, we conclude that the district court did not abuse its discretion in equitably dividing the interpleaded funds between the Wilsons and EMIA. We therefore affirm the district court’s order allocating the interpleaded funds.
¶3 This case began in September 2010 with the tragic death of Jessica Wilson, who was struck by a car while walking in a crosswalk. Jessica died at the hospital a few hours later. Jessica’s insurance provider, EMIA, covered $78,692.34 of her medical expenses.
¶4 In 2011, Jessica’s parents, the Wilsons, filed a wrongful death claim against the driver of the car that struck Jessica, seeking funeral expenses and compensation for the loss of Jessica’s companionship, love, and affection. In 2013, the Wilsons reached a tentative settlement with the driver’s insurer for the $100,000 limit of his liability insurance policy.
¶5 In January 2014, EMIA filed a "Complaint for Subrogation Claim" against the driver, seeking reimbursement for the $78,692.34 in medical expenses it had paid out on Jessica’s behalf, with accrued interest.2 EMIA asserted its subrogation claim under the terms of its insurance policy with Jessica. The driver filed a motion to dismiss, asserting that EMIA lacked standing to bring suit in its own name. The district court denied the driver’s motion, observing that (1) Utah Code sections 78B-2-105, 78B-3-106, and 78B-3-107 did not apply; (2) Utah Code section 31A-21-108 applied and allowed an insurer to bring "an action to subrogate in either its name or the name of its insured"; and (3) pursuant to EMIA’s insurance policy with Jessica, EMIA "was entitled to recovery against a third-party tortfeasor." Consequently, the court determined that EMIA had standing to file its lawsuit.
¶6 Eventually, the parties agreed to consolidate the cases against the driver, and the driver filed an interpleader counterclaim3 against EMIA and the Wilsons, in which his insurer agreed to interplead with the court the $100,000 policy limit. EMIA and the Wilsons agreed to accept the $100,000 in settlement of their claims against the driver and to dismiss him from the lawsuit with prejudice, but they disagreed on how to allocate the funds.
¶7 After a hearing on the matter, the district court concluded that it was "equitable to divide the $100,000.00 equally between the parties, specifically, $50,000.00 to the Wilsons and $50,000.00 to EMIA." However, in recognition of the fact that the Wilsons had "labored more than EMIA to acquire the $100,000.00 that was deposited with [the] Court by [the driver]," the court determined that it was "equitable to reimburse the Wilsons for one half of their attorneys’ fees and costs from EMIA’s portion"—$16,667 in attorney fees and $9,150.69 in costs. Accordingly, the court awarded $75,817.69 of the interpleaded funds to the Wilsons and $24,182.31 to EMIA. The Wilsons appealed.
¶8 In Wilson I , this court determined that Utah Code section 31A-21-1084 "contains no language granting an insurance company the right to bring a subrogation action in its own name." 2016 UT App 38, ¶ 8, 368 P.3d 471. We also observed that " ‘it has been generally held that a suit at law to enforce [a] right of subrogation must, at common law, be brought in the name of the insured, rather than by the insurance company in its own name and right.’ " Id. ¶ 10 (alteration in original) (quoting Johanson v. Cudahy Packing Co. , 107 Utah 114, 152 P.2d 98, 104 (1944) ). Thus, we concluded that "EMIA lacked standing to bring a subrogation action [against the driver] in its own name rather than in the name of Jessica or Jessica’s estate." Id. ¶ 7. Therefore, we further concluded that the district court erred in dividing the interpleaded funds between the Wilsons and EMIA, and we "reverse[d] the [district] court’s order and remand[ed] with instructions for the [district] court to dismiss EMIA’s claims and award all of the interpleaded funds to the Wilsons." Id. ¶ 13. Given our determination that EMIA lacked standing, we declined to address the Wilsons’ other arguments. Id. ¶ 7. EMIA petitioned our supreme court for certiorari, which was granted. See Wilson II , 2017 UT 69, ¶ 7, 416 P.3d 355.
¶9 The supreme court reversed, concluding that EMIA had standing to sue for subrogation in its own name pursuant to the express terms of its insurance policy with Jessica Wilson. Id. ¶¶ 9–10, 19. First, the court discussed the law of equitable subrogation and observed that "[t]he law of equitable subrogation places limits or conditions on the insurer’s right of subrogation." Id. ¶¶ 11–13. "One of those conditions is the ‘made-whole’ principle, which states that an insurer is at least sometimes required to fully compensate its insured for any losses before it asserts a claim for subrogation." Id. ¶ 13. The court then discussed subrogation by the express terms of a contract and explained that Id. ¶¶ 18–19. With regard to the made-whole principle, the court explained that the principle "arise[s] as a matter of our common law of equitable subrogation" and that it "can be modified by contract." Id. ¶ 18 (quotation simplified). Observing that EMIA’s insurance policy with Jessica "recognized EMIA’s authority ‘to pursue its own right of Subrogation against a third party’ without regard to whether the insured ‘is made whole by any recovery,’ " the court stated that "[i]t is difficult to imagine a clearer statement of EMIA’s authority to sue for subrogation in its own name and without regard to full ‘make-whole’ compensation for the Wilsons." Id. ¶ 19. Consequently, the supreme court upheld EMIA’s standing to sue for subrogation in its own name. Id. ¶ 22. The court remanded the case to this court with instructions to identify and address any issues that remained for decision after Wilson II . Id. ¶ 23.
¶10 On remand from the supreme court, we asked the parties to submit supplemental briefing advising this court as to which, if any, of the issues raised in the original briefing in Wilson I remained outstanding and needed resolution. The Wilsons identified two remaining issues: (1) whether EMIA’s claim was barred by Utah Code section 78B-3-107, and (2) whether the district court erred in its allocation of the interpleaded funds.5
¶11 The Wilsons first contend that EMIA’s claim was barred by Utah’s survival action statute, Utah Code section 78B-3-107.6 More specifically, they assert that section 78B-3-107"expressly gives the cause of action for a pre-death injury (all special and general damages suffered) to ‘the personal representatives or heirs of the person who died’ " and that "[p]re-death medical expenses are part of an injury claim." Thus, although they do not explicitly state as much, the Wilsons appear to be arguing that EMIA could not seek reimbursement for the medical expenses it paid out on Jessica’s behalf as part of its subrogation claim. We decline to address the merits of this contention because it is inadequately briefed.
¶12 An appellant’s brief "must explain, with reasoned analysis supported by citations to legal authority and the record, why the party should prevail on appeal." Utah R. App. P. 24(a)(8). "An appellant who fails to adequately brief an issue will almost certainly fail to carry its burden of persuasion on appeal." Bank of Am. v. Adamson , 2017 UT 2, ¶ 12, 391 P.3d 196 (quotation simplified). An appellant "must cite the legal authority on which its argument is based and then provide reasoned analysis of how that authority should apply in the particular case, including citations to the record where appropriate." Id. ¶ 13 ; see also Hess v. Canberra Dev. Co. , 2011 UT 22, ¶ 25, 254 P.3d 161 ().
¶13 Here, the Wilsons’ argument is devoid of any meaningful analysis. See Hess ...
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...but fails to apply any of them to his constitutional argument. See Wilson v. Educators Mutual Ins. Ass’n , 2018 UT App 155, ¶ 12, 436 P.3d 144 ("An appellant must cite the legal authority on which its argument is based and then provide reasoned analysis of how that authority should apply in......