Home Ins. Co. v. Miss. Ins. Guar. Ass'n.
| Docket Number: | 2001-CA-01074-SCT Linked Case(s): 2001-CA-01074-SCT |
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| Supreme Court: | Opinion Link Opinion Date: 01-15-2004 Opinion Author: Waller, P.J. Holding: Affirmed |
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| Additional Case Information: |
Topic: Insurance - Subrogation - Standing Judge(s) Concurring: Pittman, C.J., Smith, P.J., Easley, Carlson, Graves and Dickinson, JJ. Non Participating Judge(s): Diaz, J. Concurs in Result Only: Cobb, J. Procedural History: Summary Judgment Nature of the Case: CIVIL - INSURANCE |
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| Trial Court: |
Date of Trial Judgment: 05-23-2001 Appealed from: Rankin County Circuit Court Judge: John Kitchens Disposition: Granted MIGA's motion for summary judgment. Case Number: 16,096 |
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| Party Name: | Attorney Name: | |||
| Appellant: | HOME INSURANCE COMPANY |
ROBERT M. FREY |
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| Appellee: | MISSISSIPPI INSURANCE GUARANTY ASSOCIATION | MICHAEL WAYNE BAXTER WALKER REECE GIBSON |
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Synopsis provided by:  If you are interested in subscribing to the weekly synopses of all Mississippi Supreme Court and Court of Appeals hand downs please contact Tammy Upton in the MLI Press office. |
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| Topic: | Insurance - Subrogation - Standing |
| Summary of the Facts: | Three oil rig workers filed suit against G. B. "Boots" Smith Corp., alleging personal injuries as a result of an accident. Home Insurance Company was Smith's primary liability insurer, providing up to $500,000 in coverage, and Mission National Insurance Company was Smith's reinsurer or excess liability carrier, providing up to $5,000,000 in coverage. The plaintiffs offered to settle within Home's policy limits, but Home refused. A trial resulted in a $2,050,000 verdict against Smith. Prior to payment of its portion of the amount owed by Smith, Mission filed for bankruptcy. It was later discovered that Home failed to inform Smith of the settlement offer. Home paid the entire amount of the judgment against Smith, including that part which exceeded the Home policy limit of $500,000. Later, Home secured an assignment from Smith of all of its potential claims against Mission. Home requested that the Mississippi Insurance Guaranty Association contribute $300,000, the statutory limit, towards satisfying the judgment. MIGA filed a declaratory judgment action against Home and Smith requesting a declaration that it was not statutorily liable to satisfy the judgments rendered against Smith. Smith was later dismissed from the suit. MIGA's motion for summary judgment was granted, and Home appeals. |
| Summary of Opinion Analysis: | Home argues that it has an assignment of all claims from Smith. Even though Home's document is called an assignment, it really is a disguised subrogation attempt. To be entitled to subrogation under this context, a party must show that he has paid for something that another, not himself, is legally obligated to pay. Here, Home was legally obligated to pay the entire judgment amount because Home refused to settle within the $500,000 policy limits. Therefore, the policy limits increased to encompass the judgment amount, and Home does not have standing to bring this suit since Home's policy limits were extended to cover the entire judgment against Smith, and no subrogation would be allowed under the MIGA Law. |
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