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Nichols v. State Farm Fire and Casualty Company8/11/2000
fire and that there was a genuine issue of material fact on this point.
State Farm then expanded the grounds for its motion. Filing a new affidavit from Janet Sperbeck detailing her activities in the case, State Farm argued that Sperbeck committed no acts of spoliation and that, as State Farm's agent, she had fulfilled State Farm's duty concerning the ladder.
After additional discovery, Nichols filed a supplemental opposition to State Farm's summary judgment motion. Nichols opposed the motion on two grounds: (1) that it was not ripe because of the pendency of Nichols's motion to compel various documents relating to State Farm's investigation of the case; and (2) that the ladder was not destroyed in the fire and that "State Farm had one full month to locate and preserve the ladder but it made no attempt to do so."
State Farm filed a supplemental reply in support of its motion for summary judgment. In it, State Farm noted that Nichols's claim had "apparently, evolved into a claim that State Farm negligently failed to locate the ladder, as opposed to a claim that it spoliated the ladder." It argued that this is essentially a claim for negligent investigation and that an insurer owes no duty of reasonable investigation to a claimant. State Farm cited O.K. Lumber Co. v. Providence Washington Insurance Co. for this proposition and sought summary judgment on this basis.
State Farm also argued that Alaska does not recognize negligent spoliation as a separate tort and that there was no evidence that State Farm had intentionally spoliated the ladder.
The superior court granted summary judgment to State Farm. In relevant part, the superior court wrote:
State Farm owed no duty to Nichols to locate or preserve the ladder. Without a duty, a negligence claim is barred.
In O.K. Lumber v. Providence Washington Ins. an injured claimant claimed damages against the insurer for the insurer's negligent investigation and adjustment of the claim. 759 P.2d 523 (Alaska 1988). O.K. Lumber held that an insurer owes no such duty to the claimant. Id. In the same manner, State Farm owes no duty to Nichols.
A week after the superior court granted summary judgment to State Farm, the court granted Nichols's motion to compel against State Farm. The court ordered State Farm to produce Nichols's claim file, Gittlein's fire claim file, and the entire underwriting file.
State Farm did not respond to the order. Instead, Gittlein produced all of the requested documents with the exception of Nichols's file. Gittlein redacted portions of the file that related to the insurance adjuster's assessment of Gittlein's liability and Nichols's comparative liability. He then moved for a protective order to preserve those redactions.
On December 7, 1998, the superior court entered final judgment for State Farm and awarded State Farm twenty percent of its attorney fees, for a total of $4,000, under Civil Rule 82(b)(2).
After the entry of final judgment, on December 23, 1998, the superior court reviewed Gittlein's redactions in camera. The court granted Gittlein's motion for a protective order and held that the redacted portions were "irrelevant and prejudicial."
Nichols appeals the grant of summary judgment, the issuance of the protective order, and the award of attorney's fees.
III. STANDARD OF REVIEW
We review a grant of summary judgment de novo. Drawing all reasonable inferences in favor of the nonmoving party, we will uphold summary judgment if no genuine issue of material fact exists and the moving party is entitled to judgment as a matter of law.
We rev
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